N.Y.S. Law Enforcement Officers Union Council 82 v. Cuomo
| Decision Date | 24 September 2018 |
| Docket Number | 1:11-CV-1525 (MAD/CFH) |
| Citation | 346 F.Supp.3d 256 |
| Parties | The NEW YORK STATE LAW ENFORCEMENT OFFICERS UNION COUNCIL 82, AFSCME, AFL-CIO; James Lyman, as Executive Director of the New York State Law Enforcement Officers Union, Council 82, AFSCME, AFL-CIO; Michael LaDue, Individually and as President of Local 2951; Robert H. Beck, Jr., Individually and as a Member of Local 635 SS, John Tremark, Individually and as President of Local 2337, Security and Law Enforcement Employees, Council 82 AFSCME, AFL-CIO; Gary Tavormina, Individually, and as Retiree Chapter 82 President of the Security and Law Enforcement Employees, Council 82, AFSCME, AFL-CIO; Charles Krom, Sr., Individually, and as Retiree Chapter 82 Vice President of the Security and Law Enforcement Employees, Council 82, AFSCME, AFL-CIO; and Laura Cestaro, Gerald Gallo, and Donald Schoen, on behalf of Themselves and All Others Similarly Situated, Plaintiffs, v. Andrew M. CUOMO, in His Official Capacity as Governor of the State of New York; Patricia A. Hite, Individually, and in Her Official Capacity as Acting Commissioner, New York State Civil Service Department; Caroline W. Ahl and J. Dennis Hanrahan, in Their Official Capacities as Commissioners of the New York State Civil Service Commission; Robert L. Megna, Individually, and in His Official Capacity as Director of the New York State Division of the Budget ; and Thomas P. DiNapoli, in His Official Capacity as Comptroller of the State of New York, Defendants. |
| Court | U.S. District Court — Northern District of New York |
CHRISTINE CAPUTO GRANICH, ESQ., NEW YORK STATE LAW, ENFORCEMENT OFFICERS UNION, DISTRICT 82, 63 Colvin Avenue, Albany, New York 12206, Attorneys for Plaintiffs.
HELENA LYNCH, AAG RICHARD LOMBARDO, AAG, OFFICE OF THE NEW YORK, STATE ATTORNEY GENERAL, The Capitol, Albany, New York 12224, Attorneys for Defendants.
In an amended complaint dated February 14, 2012, Plaintiffs seek declaratory and injunctive relief pursuant to 28 U.S.C. §§ 2201 and 2202, and money damages, to redress Defendants' alleged deprivation of Plaintiffs' rights secured pursuant to the Contracts Clause of the United States Constitution, the Fourteenth Amendment to the United States Constitution, 42 U.S.C. § 1983, Article I, § 6 of the New York State Constitution, Article III, § 1 of the New York State Constitution, and for breach of contract, and violation of New York State Civil Service Law § 167, resulting from Defendants' unilateral action effective October 1, 2011, increasing the contribution rates that Plaintiffs, who are active and retired employees of the State of New York, pay for their health insurance in retirement. See Dkt. No. 16. Plaintiffs further seek an order declaring Chapter 491 of the Laws of 2011, Civil Service Law § 167(8), unconstitutional, as applied, and enjoining Defendants' implementation thereof, to the extent that the law and any regulations adopted thereunder impermissibly impair the obligation of the contract between the State and individual Plaintiffs, and the class they represent, by increasing the contribution rates that such retirees are required to pay for health insurance benefits in retirement. See id. at ¶ 3.
Currently before the Court is Defendants' motion for summary judgment. See Dkt. No. 91.
Plaintiff the New York State Law Enforcement Officers Union Council 82 ("Council 82") is the collective bargaining representative for members of the Securities Supervisors Unit, many of whom are enrolled in and receive benefits through the New York State Health Insurance Program ("NYSHIP"). See Dkt. No. 91-2 at ¶ 1. Plaintiff James Lyman was, at the relevant time, Executive Director of Council 82. See id. at ¶ 2. Plaintiffs Michael LaDue, Robert H. Beck, Jr., and John Tremark were, at the relevant times, active employees of the State of New York and members of Council 82, and were receiving Dependent Coverage benefits through NYSHIP. See id. at ¶ 3. Plaintiff Security and Law Enforcement Employees Council 82, AFSCME, AFL-CIO ("SLEEC Chapter 82") is an advocacy and lobbying organization on behalf of retired state employees. See id. at ¶ 4. SLEEC is affiliated with Council 82 and open to former members of Council 82. See id. Plaintiff Gary Tavormina, President of SLEEC, is a retired former member of Council 82 receiving Individual Coverage health benefits through NYSHIP. See id. at ¶ 5. Plaintiff Charles Krom, Sr., Vice President of SLEEC, is a retired former member of Council 82 receiving Dependent Coverage health benefits through NYSHIP. See id. at ¶ 6. Plaintiffs Laura Cestaro and Gerald Gallo are retired former members of Council 82 and are receiving Dependent Coverage health insurance benefits through NYSHIP. See id. at ¶ 7. Plaintiff Donald Schoen is a retired former member of Council 82 and is receiving Individual Coverage health benefits through NYSHIP. See id. at ¶ 8.
Defendant Andrew M. Cuomo is the Governor of the State of New York. See id. at ¶ 9. Defendant Patricia A. Hite was, in 2011, Acting Commissioner of the New York State Department of Civil Service. See id. at ¶ 10.2 Defendants Caroline W. Ahl and J. Dennis Hanrahan were, in 2011, the members of the Civil Service Commission. See id. at ¶ 11. Defendant Robert Megna was, in 2011, the Director of the New York State Division of the Budget. See id. at ¶ 12. Defendant Thomas P. DiNapoli is the Comptroller of the State of New York. See id. at ¶ 13.
During 2011, the collective bargaining agreement ("CBA") in effect between the State of New York and Council 82 was the CBA for the term April 1, 2007, through March 31, 2009 (the "2007-09 CBA"). See Dkt. No. 91-2 at ¶ 14. As of February 14, 2012, a successor agreement had not been entered into between the State and Council 82 subsequent to the 2007-09 CBA. See id. at ¶ 15.
Section 12.1 of the 2007-09 CBA provided: "The State shall continue to provide all the forms and extent of coverage as defined by the contracts and Interest Arbitration Awards in force on March 31, 2007 with the State health and dental insurance carriers unless specifically modified or replaced pursuant to this Agreement."Id. at ¶ 16. Section 12.8(a) of the 2007-09 CBA provided that "[t]he State agrees to pay 90 percent of the cost of individual coverage and 75 percent of the cost of dependent coverage, provided under the Empire Plan." Id. at ¶ 20. Section 12.8(b) of the 2007-09 CBA extended the substantially equivalent contribution rates for Health Maintenance Organizations ("HMO"). See id. at ¶ 21. Additionally, Section 12.8(c) of the 2007-09 CBA provided that "[t]he unremarried spouse of an employee, who retires after April 1, 1979, with ten or more years of active State service and subsequently dies, shall be permitted to continue coverage in the health insurance program with payment at the same contribution rates as required of active employees." Id. at ¶ 22.
The subsequent collective bargaining agreement between the State and Council 82, for 2009-2016 (the "2009-16 CBA"), was dated October 10, 2013. See Dkt. No. 91-2 at ¶ 23. Article 1 of the 2009-16 CBA, "Terms of Agreement," provides as follows: "This Agreement shall be effective as of April 1, 2009, except as otherwise specified, and shall continue in full force and effect to and including March 31, 2016." Id. at ¶ 24. Section 12.1 of the 2009-16 CBA provides that "[t]he State shall continue to provide all the forms and extent of coverage as defined by the contracts and Interest Arbitration Awards in force on March 31, 2009 with the State health and dental insurance carriers unless specifically modified or replaced pursuant to this Agreement." Id. at ¶ 25. Section 12.8(a) of the 2009-16 CBA provides:
The State agrees to pay 90 percent of the cost of individual coverage and 75 percent of the cost of dependent coverage, provided under the Empire Plan.... Effective October 1, 2011, the State agrees to pay 84 percent of the cost of individual coverage and 69 percent of the additional cost for dependent coverage under the Empire Plan.
Id. at ¶ 29. Section 12.8(b) of the 2009-16 CBA extends the substantially equivalent contribution rates to HMOs. See id. at ¶ 30. Additionally, Section 12.8(c) of the 2009-16 CBA provides that "[t]he unremarried spouse of an employee, who retires after April 1, 1979, with ten or more years of active State service and subsequently dies, shall be permitted to continue coverage in the health insurance program with payment at the same contribution rates as required of active employees." Id. at ¶ 31.
From 1982 to 2007, the various collective bargaining agreements between the State and Council 82 contained substantially the same provisions as discussed above. See Dkt. No. 91-2 at ¶¶ 32-47. The 1982-85 CBA, however, provided that the State would pay 100% of individual coverage and 75% of dependent coverage. See id. at ¶ 48.
The Court will not repeat all of the facts relating to the 1983 and 2011 Legislation, the fiscal crisis facing the State in 2010 and 2011, or the parties' arguments relating to Defendant Hite acting as the head of the Department of Civil Service. Rather, the Court refers the parties to the discussion set forth in the accompanying Memorandum-Decision and Order from the Lead Case.
In their first cause of action, Plaintiffs allege that the increase in the percentage of the health insurance premium contribution paid by retirees violated the Contracts Clause of Article I, § 10 of the United States Constitution. Defendants contend that the Court should dismiss this cause of action because the collective...
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