Mail Tribune
The city of Medford will have to pay potential damages to retired employees who had been wrongly denied continuing health coverage, Jackson County Circuit Court Judge Mark Schiveley ruled this month.
On Sept. 4, Schiveley wrote in his opinion that former City Attorney Ron Doyle and three other former city employees should have been covered by a bridge health insurance plan until they reached age 65. The other former employees who joined in the suit were Robert Deuel, Benedict Miller and Charles Steinberg.
Schiveley denied a motion for a class-action suit, but said Doyle and the others could be entitled to different damages based on different legal theories that would be applied on a case-by-case basis. The damage amounts will be determined later during a trial.
The judge earlier dismissed Medford's argument that it wasn't possible to provide a health plan to these retired employees.
"It is apparent from the record that other insurance which provides bridge coverage for employees indisputably is and has been available," wrote Schiveley.
At issue is the contention by former employees that Oregon law requires a government entity to provide bridge health insurance after they retire.
Schiveley stated Doyle and Deuel correctly claimed the city breached a contract to provide them with the option of electing to have a bridge health plan that was described in employee handbooks.
"There is undisputed evidence that the city failed to provide them with the election when they retired, thus breaching the contract," stated Schiveley.
According to Portland attorney Steve Brischetto, who represents Doyle and the other retirees, the city has different kinds of health insurance for different workers. Those in unions such as firefighters have a bridge plan, representing about 40 percent of employees. The remaining 60 percent of employees, such as police, managers and parks and recreation workers, don't have the bridge coverage.
Brischetto said that his interpretation of state law indicates the city has to provide the same level of coverage for everyone.
"If the city makes available health insurance to its current officers and employees, it must make it to its current retirees if that's possible," he said.
Brischetto said it has been a hardship on city employees who scrambled to find health coverage, but found it difficult because of preexisting health conditions. In some cases, they had to opt for plans with high premiums or settle for a plan that gave them lesser coverage.
He said these situations could have been avoided if the city had offered them a bridge insurance plan.
Springfield attorney Robert Franz, who represents the city, and City Manager Mike Dyal could not be reached for comment Friday.
Doyle, who retired in April 2005, initially asked the city for the opportunity to purchase the same health-insurance coverage that is available to current employees, or else provide a lump-sum payment of $90,000 to cover additional insurance and prescription costs.
In a separate, but similar case, Schiveley issued a summary judgment in July in favor of a public works employee, Joseph Bova, and others who asserted Medford is required by Oregon Revised Statute 243.303 to provide coverage to its retirees if that insurance is available to current employees.
Bova was treated as a separate case because he was employed by the city at the time of his lawsuit, while Doyle and others already had retired.
Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.
