Loth v. City of Milwaukee

2008 WI App 12, 745 N.W.2d 693, 307 Wis. 2d 412, 2007 Wisc. App. LEXIS 1129
CourtCourt of Appeals of Wisconsin
DecidedDecember 27, 2007
Docket2007AP587
StatusPublished
Cited by2 cases

This text of 2008 WI App 12 (Loth v. City of Milwaukee) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loth v. City of Milwaukee, 2008 WI App 12, 745 N.W.2d 693, 307 Wis. 2d 412, 2007 Wisc. App. LEXIS 1129 (Wis. Ct. App. 2007).

Opinions

KESSLER, J.

¶ 1. Albert Loth appeals from the circuit court order granting the City of Milwaukee summary judgment, dismissing his complaint, and denying his motion for summary judgment declaring the City had breached its contract with him when it adopted a resolution reducing the retirement benefits to which he would have been entitled at retirement under the earlier resolution. We conclude that the circuit court did not correctly apply controlling legal precedent, thus we reverse and remand for further proceedings.

[415]*415Background

¶ 2. Loth was hired as an accountant by the City of Milwaukee in November 1984. He was born in April 1945. Loth was a management employee and was never covered by a collective bargaining agreement during his tenure with the City. At the time he was hired, Loth was provided with a handbook that explained certain benefit's which would be available to him when he retired. The handbook stated:

(7) Medioal and Dental Insurance
1. Eligibility:
d. Normal Pension Retirement: Employees in active service who retire on normal pension with at least 15 years of creditable service will be entitled to the medical benefits so long as they are at least age 60 and less than age 65. The earliest date that an eligible retiree may become covered by the medical benefits will be the first of the month next following the retiree's 60th birthday, and the last date of coverage will be the last day of the month prior to the month in which the retiree becomes 65,
4. 1983 Cost of Coverage - Medical Benefits:
Normal Pension Retirement.. .*
^(General City retirees 60-65 with at least 15 years' service are entitled to City paid health insurance which includes their eligible dependents.)

(Capitalization and underlining in original.)

¶ 3. At that time, an additional City handbook, entitled "Policies and Procedures for Health and Dental [416]*416Plans," and identified as coming from the City of Milwaukee Department of Employee Relations, Employee Benefits Division, advised that:

COVERAGE FOR RETIREES, DISABILITIES AND SURVIVING SPOUSES
Current City rules provide for City-paid (free) health coverage for general City retirees with a normal service retirement, age 60 to age 65, provided they have at least 15 years of City service ....

(Bolding in original.)

¶ 4. These handbooks explained the substance of a resolution in effect at the time, which had been adopted in 1973 by the City of Milwaukee Common Council. The resolution stated:

Resolution relating to coverage for retirees with respect to health insurance.
Whereas. The City is desirous of extending without cost to retirees health insurance provided by Blue Cross-Blue Shield and Major Medical to certain retirees; now, therefore, be it
Resolved. By the Common Council of the City of Milwaukee that there shall be and is extended all present health insurance provided by Blue Cross-Blue Shield and Major Medical to general city employes who retire after January 1, 1974, and who meet all of the following qualifications:
1) Are between the ages 60-65;
2) Who have 15 or more years of city service; and
3) Who retire under the general city retirement system with an unreduced "retirement allowance;" and, be it
[417]*417Further Resolved. That a surviving spouse of such retired employe shall be accorded the same benefits as she would have been eligible for under the present system; and, be it
Further Resolved. That all benefits for such coverage as provided for in this resolution shall be paid for by the City.

City of Milwaukee Resolution 73-216 (italics and arrangement in original). By November 1999, Loth had worked continuously for the City for fifteen years.

¶ 5. In the face of rising health insurance costs, in July 2002, the Common Council adopted Resolution 020479 to take effect January 1, 2004. This resolution significantly changed the health insurance benefits available to management retirees who had worked for the City for fifteen years by eliminating the City's obligation to pay for insurance for any general management retirees.1 The 2002 resolution provides, in relevant part:

Whereas, The City of Milwaukee currently provides that General City Management employees who select retirement, those 55 years of age with 30 years of service or those 60 years of age with 15 years of service, can select any health insurance plan the City offers at no cost until they reach 65; and
Whereas, The City currently, in 2002, charges active Management Employees $100 for single coverage in the Basic Plan or $190 for family coverage in the Basic Plan; and
[418]*418Whereas, The costs for both the City HMO health insurance and the self-funded City Basic Plan continue to increase significantly; and
Whereas, Few other employers provide early retirees with full health insurance coverage till 65 at no cost; now, therefore, be it
Resolved, That the City of Milwaukee rate structure for health insurance for all Management Employees who retiree [sic] on or after January 1, 2004, be the same as it is for active Management Employees.

¶ 6. Loth reached age sixty on April 12, 2005, and retired on April 23, 2005. The City deducted health insurance premiums beginning with his first retirement check and continuing throughout these proceedings.

¶ 7. Loth sued, alleging breach of contract and promissory estoppel. He requested monetary damages, declaratory relief, and an injunction. The City denied liability, claiming that because Loth had not reached age sixty when it changed the benefits in the 2002 ordinance, Loth had not satisfied the conditions necessary to receive the previous promise of health insurance at no cost. Both parties moved for summary judgment. The trial court granted the City's motion, and dismissed Loth's complaint. It denied Loth's motion. This appeal followed.2

Standard of Review

¶ 8. We review de novo the trial court's grant or denial of summary judgment. Green Spring Farms v. [419]*419Kersten, 136 Wis. 2d 304, 315-17, 401 N.W.2d 816 (1987). Further, while the trial court's decision whether to grant declaratory relief is discretionary, we review de novo questions of law involved in that decision. Commercial Union Midwest Ins. Co. v. Vorbeck, 2004 WI App 11, ¶ 7, 269 Wis. 2d 204, 674 N.W.2d 665.

¶ 9. This dispute centers on whether certain retirement benefits vested under the terms of an existing resolution, and whether those benefits, once vested, could be withdrawn by a later resolution. There is no substantive difference between a resolution and an ordinance, Cross v.

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Related

Loth v. City of Milwaukee
2008 WI 129 (Wisconsin Supreme Court, 2008)
Loth v. City of Milwaukee
2008 WI App 12 (Court of Appeals of Wisconsin, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
2008 WI App 12, 745 N.W.2d 693, 307 Wis. 2d 412, 2007 Wisc. App. LEXIS 1129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loth-v-city-of-milwaukee-wisctapp-2007.