Lieff Cabraser Heimann & Bernstein, LLP

Winnett, et al. v. Caterpillar, Inc.

Introduction

Lieff Cabraser, with co-counsel Meties, Mulder, Mollica and Glink and AARP, represents retirees of Caterpillar, Inc. in a class action lawsuit against the company to preserve the healthcare benefits promised them under collective bargaining agreements. The complaint was filed in April 2006 in U.S. District Court in Nashville, Tennessee, by two Caterpillar retirees and a surviving wife of a deceased retiree.

Caterpillar's Alleged Contractual Violations

In October 2004, Caterpillar began charging retirees monthly premium costs ranging from $134 to $280 per month for health care benefits.

However, the Complaint charges that Caterpillar’s labor contracts and benefit plans provided retiree’s health care coverage "continued for his or her lifetime at no cost." The lawsuit seeks to end these charges and restore the plaintiffs and similarly situated retirees to the position they would have been but for Caterpillar’s contractual violations.

"Workers at Caterpillar made the company into the world's leading manufacturer of construction and mining equipment and were assured free lifetime healthcare coverage," commented plaintiffs’ counsel Elizabeth Alexander at Lieff Cabraser. "Caterpillar should not charge them for any portion of their health care coverage through deductions from their pension benefits."

Class Certification Order

On July 12, 2007 the District Court granted the plaintiffs class certification request and designated the named plaintiffs as class representatives. The Court certified a class consisting of retirees and surviving spouses:

• who are or were participants or beneficiaries in Caterpillar’s plan that provided for retiree medical insurance benefits;
• for whom the UAW had been the employees’ collective bargaining representative at the time of their retirement from Caterpillar, Inc.; and
• who began working for Caterpillar prior to the expiration of the 1988 labor agreement and who retired between January 1, 1992 and March 16, 1998; or in the case of beneficiaries, who is a surviving participant spouse.

In addition, the District Court certified three subclasses:

1. members of the main class who were eligible to retire prior to January 1, 1992;
2. members of the main class who worked (or whose employee spouses worked) under the Caterpillar Logistics Services Agreement; and
3. members of the main class who are surviving spouses of Caterpillar retirees.

Current Case Status

Caterpillar filed a Motion to Dismiss the lawsuit. The District Court denied the motion in its entirety. The Court held that the plaintiffs have stated a claim under the Labor Management Relations Act ("LMRA") 29 U.S.C. sec, 185(a), and the Employment Retirement Income Act ("ERISA"), 29 U.S.C. §§ 1132(a)(1)(B). In denying Caterpillar's motion, the Court stated that "in interpreting the language of the relevant documents, the court finds evidence that Caterpillar intended to confer lifetime vested retiree medical benefits upon plainitffs."

Caterpillar appealed this decision to the United States Court of Appeals for the Sixth Circuit.

Read a copy of the Caterpillar Class Certification Order or the Memorandum and Opinion issued by the Court.

Contact Plaintiffs' Attorneys

Caterpillar retirees who wish to learn more about the lawsuit or contact counsel should call us toll-free at 1-866-313-1973 or click here to send us an email message.

Notice

This website is sponsored by Lieff Cabraser Heimann & Bernstein, LLP, a national plaintiffs' law firm, and is not affiliated in any way with Caterpillar, Inc.