NOTICE OF CLASS ACTION SETTLEMENT

Transcription

1 UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA Retiree Support Group of Contra Costa County v. Contra Costa County Case Number CV (JST) NOTICE OF CLASS ACTION SETTLEMENT A federal court has authorized this Notice. This is not a solicitation from a lawyer. «Barcode» «BarcodeString» SIMID «SIMID» «FirstName» «LastName» «Address1» «Address2» «City» «Abbrev» «Zip» PLEASE READ THIS NOTICE IN FULL TO DETERMINE YOUR RIGHTS AND OBLIGATIONS Your Legal Rights are Affected Even If You Do Not Act. Read this Notice carefully. To: All members of the Settlement Class in the Lawsuit entitled Retiree Support Group of Contra Costa County v. Contra Costa County, Case Number JST, which includes: All eligible Contra Costa County retired employees receiving County retiree health benefits who retired from County employment on or before December 31, 2015, except for the Excluded Retirees as defined below. The Settlement Class includes both regular County retirees and the following groups: a) Eligible retirees of Board of Supervisors governed special districts who are in County Health Plans and do not receive health care coverage under the Public Employees Medical and Health Care Act, Government Code 22751, et. seq., ( PEMHCA ); and b) Eligible retirees from the Contra Costa County Superior Court who were County employees at the time of retirement and who are in County Health Plans and do not receive health care coverage under PEMHCA. The Settlement Class does not include the following Excluded Retirees: Any Retirees from the County who were represented at the time they retired by the California Nurses Association ( CNA ), or by the Physicians and Dentists Organization of Contra Costa ( PDOCC ). Any Retirees from the County who are receiving health care coverage under PEMHCA. Employees who retired from County employment after December 31, Page 1 of 8

2 Your Legal Rights And Options In This Lawsuit Do Nothing Object to the Settlement (on or before September 6, 2016) Ask To Be Excluded (opt out) (on or before September 6, 2016) Go to the Fairness Hearing (to be held on Tuesday, October 25, 2016) Stay in the Lawsuit. If the Settlement Agreement is approved by the Court and you are a member of the Settlement Class you do not need to do anything to receive the benefits from this settlement. You will release Contra Costa County from all claims brought in this Lawsuit, and all claims that could have been raised in the Lawsuit that in any way relate to the provision of health care by the County to employees that retired from employment with the County on or before December 31, 2015 as is described in Section 10 below. Object to the settlement. If you wish to object to some or all of the Settlement Agreement, you may (as discussed below) write to the Court and to the lawyers in the case about why you do not like the Settlement Agreement. Get out of this Lawsuit. You have the right to exclude yourself (opt out) from this Settlement Agreement. If you ask to be excluded, you will not share the benefits of the Settlement Agreement, but you will keep your right to bring a claim against Contra Costa County separately about the legal claims in the Lawsuit If you have submitted a written objection to the Settlement Agreement to the Court and the attorneys, you may (but do not have to) attend a Court hearing about the Settlement Agreement ( the Fairness Hearing ) and present your objections to the Court. You may attend the Fairness Hearing even if you do not file a written objection, but you will only be allowed to speak at the Fairness Hearing if you submit your objection and a request to be heard at the Fairness Hearing. The Fairness Hearing will be held: Tuesday, October 25, 2016, 2:00 p.m. U.S. District Court for the Northern District of California Courtroom 9 19 th Floor 450 Golden Gate Avenue San Francisco, CA WHAT INFORMATION IS IN THIS NOTICE 1. Why Have I Received This Notice?... Page 3 2. What Is This Case About?... Page 3 3. Am I A Settlement Class Member?... Page 3 4. What Does The Settlement Provide?... Page 4 5. How Does This Class Action Settlement Work?... Page 5 6. Who Are the Attorneys Representing The Plaintiffs and Settlement Class?... Page 5 7. What Are My Options?... Page 6 8. How Do I Exclude Myself From This Settlement?... Page 6 9. How Do I Object To The Settlement?... Page How Does This Settlement Affect My Rights? What Claims Are Released?... Page The Settlement Administrator... Page Additional Information... Page 8 Page 2 of 8

3 1. Why Have I Received This Notice? You are receiving this notice because Contra Costa County s records indicate that you may be one of the approximately 4000 people who is a former County employee who retired from County employment on or before December 31, 2015 and whose rights might be affected by the settlement of this Lawsuit. On June 14, 2016, Judge Jon S. Tigar of the U.S. District Court for the Northern District of California issued an order preliminarily approving the Settlement Agreement. The Court conditionally certified the case as a class action on behalf of the Settlement Class, gave preliminary approval to the Settlement Agreement, and directed that you receive this Notice. The Court will hold a Fairness Hearing as to whether it should finally approve the proposed Settlement Agreement on Tuesday, October 25, 2016 at 2:00 p.m. at the following location: U.S. District Court for the Northern District of California Courtroom of the Hon. Jon S. Tigar, Courtroom th floor 450 Golden Gate Avenue San Francisco, CA The date of the Final Approval Hearing might change without further notice. You are advised to check the settlement website maintained by the Settlement Administrator appointed by the Court: or through the United States District Court for the Northern District of California s Public Access to Court Electronic Records (PACER) system at to confirm that the hearing date has not changed. 2. What Is This Case About? In February 2012 Plaintiff Retiree Support Group of Contra Costa County ( RSG ) filed suit against the County challenging the County s freeze on the amounts it contributes for retiree medical plan coverage. RSG alleged a number of different legal claims -- breach of contract, promissory estoppel, and due process violation and impairment of contract claims under both the California and Federal constitutions. RSG is a non-profit membership organization consisting of retirees from public service in Contra Costa County, their spouses, their survivors, and their domestic partners. In the lawsuit, RSG alleged that starting in 1992, the County entered into a number of Memoranda of Understanding (MOUs) with its employee unions that included implied promises to pay at least 80% of the costs of medical benefits for retirees and their dependents under at least one of the health plans offered through the County. RSG alleged that the County was obligated to do so for the lifetimes of the retirees. RSG also alleged that the County was bound by the same promises to retirees who had not been represented by unions while employed by the County. The lawsuit claimed that the County breached these contracts starting in January 1, 2010 when it began to require retirees to pay a higher percentage of their health care costs. While this case was not originally filed as a class action, the parties have agreed as part of the Settlement Agreement that it should be re-filed as a class action for settlement purposes. 3. Am I A Settlement Class Member? You are a member of a Settlement Class if you fall within the following definition: All eligible Contra Costa County retired employees receiving County retiree health benefits who retired on or before December 31, 2015, except for the Excluded Retirees as defined below. The Settlement Class includes both former County employees that retired from employment with the County on or before December 31, 2015 and the following groups: Page 3 of 8

4 (1) Eligible retirees of Board of Supervisors governed special districts who are in County Health Plans and do not receive health care coverage under the Public Employees Medical and Health Care Act, Government Code 22751, et. seq., ( PEMHCA ); and (2) Eligible retirees from the Contra Costa County Superior Court who were County employees at the time of retirement and who are in County Health Plans and do not receive health care coverage under PEMHCA. The Settlement Class does not include the following Excluded Retirees: Any Retirees from the County who were represented at the time they retired by the California Nurses Association ( CNA ), or by the Physicians and Dentists Organization of Contra Costa ( PDOCC ). Any Retirees from the County who are receiving health care coverage under PEMHCA. Any employee of the County who retired from the County after December 31, What Does The Settlement Provide? Medical Benefits for Non-Medicare Eligible Retirees. For retirees and dependents who are not yet Medicare eligible, and until they become Medicare eligible, the Settlement Agreement provides that they shall have access to the same health plans and plan providers as the County provides for active County employees at any given time. These retirees and dependents will remain blended with active County employees not participating in PEMHCA health plans for purposes of rate setting, and will have the same premiums, co-pays, and deductibles as active employees in plans provided by County for employees at any point in time now and in the future. This blending for rate setting purposes acts to lower the rates of these retirees because if rates were set separately for them, those rates would be higher because retirees as a group are older than active employees as a group. The County will pay up to a Maximum Fixed Monthly Subsidy for health plans until the retirees in this group become Medicare eligible. The Maximum Fixed Monthly Subsidy that the County will pay for different health plans are set forth in Exhibit 2 to the Settlement Agreement. A copy of that Exhibit is attached to this Notice. In other words, the County will never pay less than those amounts unless the cost of the premium for a given plan year is less than the Maximum Fixed Monthly Subsidy, in which case the County will pay the actual cost less $0.01. (In some instances, this will result in the County paying more than it has during the past several years until the Maximum Fixed Monthly Subsidy is reached.) The Maximum Fixed Monthly Premium Subsidy to be paid by the County represent approximately 71.9% of the 2016 premiums for the least expensive plan offered by the County. Non- Medicare Eligible retirees and dependents shall maintain subsidized dental coverage as set forth in Exhibit 2 to the Settlement Agreement, a copy of which is attached to this Notice. The County currently uses a two tier system for setting premiums: one premium for retiree only, and one for retiree plus family. It is possible that in the future the County will move to a three tier system--- retiree, retiree plus one dependent, and retiree plus two or more dependents. This would cause the premiums for those with two or more dependents to increase substantially. In that event, the Maximum Fixed Monthly Subsidy paid by the County for the first two tiers shall remain the same as the two tiers in the current, two-tiered system. The Maximum Fixed Monthly Subsidy for the retiree plus two or more dependents tier shall be the Maximum Fixed Monthly Subsidy for the current retiree plus family tier plus $ When the retirees in this group become eligible for Medicare, they will be covered by the provisions for Medicare-eligible retirees, discussed below. Page 4 of 8

5 Medical Benefits for Medicare-Eligible Retirees. Medicare-eligible retirees and dependents shall have access to the same health providers as active County employees at any applicable point in time, but to those providers Medicare supplemental and Coordination of Benefits plans offered by the County through those health providers. The County shall contribute to the cost of these plans up to the Maximum Fixed Premium Subsidy for the lifetime of these Class Members, except that the Maximum Fixed Premium Subsidy shall increase by $25.00 for Medicare retirees with no dependents and for Medicare retirees with all dependents on Medicare effective January 1, Those maximums are set forth in Exhibit 2 to the Settlement Agreement, a copy of which is attached to this Notice. Medicareeligible retirees and dependents shall maintain subsidized dental coverage as set forth in Exhibit 2. (For the limited number of retirees who, for historical reasons, were not required to enroll in Medicare, the County will continue to pay the Maximum Fixed Monthly Subsidy for their lifetimes unless they enroll in Medicare. A list of such individuals is Exhibit 1 to the Settlement Agreement.) Medical Benefits for Survivors of County Retirees. As has been the case in the past and at present, the County shall not pay a premium subsidy for any health plan for any survivor of a deceased retiree. Survivors, however, shall continue to be eligible to participate in County plans, including Medicare plans, solely at their own expense, so long as they maintain continuous enrollment and would qualify as dependents were the retiree alive and an active County employee. 5. How Does This Class Action Settlement Work? This Lawsuit was not originally filed as a class action, even though the claims RSG raised affected a large group of County retirees, as is common for class actions. The Court has now given permission to amend the lawsuit in order to include class action claims. In the Third Amended Complaint filed June 15, 2016, RSG has continued to assert its claims, and 6 retirees -- Michael Sloan, Deborah Elite, Susanne Beadle, Billie Joe Wilson Elkin, Alyn Goldsmith, and Alice Grothmann ( the Named Plaintiffs ) have brought essentially the same claims on behalf of the Settlement Class, which is described above. The Court has not decided the case in favor of Plaintiffs or Contra Costa County. Instead, both sides agreed to resolve the lawsuit with no decision or admission of who is right or wrong. By agreeing to resolve the lawsuit, all parties avoid the risks and cost of further proceedings, including likely motions to have the case dismissed before trial and a possible trial and appeal, and the Settlement Class Members will receive the settlement benefits described above immediately. Plaintiffs and their attorneys believe the settlement is in the best interests of the Settlement Class. Plaintiffs attorneys are experienced in litigating class actions and claims for retiree medical benefits. The attorneys have reviewed over 300,000 pages of documents that they obtained from the County in the lawsuit, listened to deposition testimony of witnesses, and interviewed tens more witnesses. Their recommendation of the Settlement is based on their judgment of the chances of success in view of the information obtained and the governing law. The Court file contains the settlement documents which explain the Settlement Agreement in greater detail. The Court must review the terms of the Settlement Agreement and determine if it is fair and reasonable to the Settlement Class. The Court will hold a hearing regarding the fairness of the Settlement Agreement on October 25, 2016 (see Section 1). 6. Who Are the Attorneys Representing The Plaintiffs and Settlement Class? The Attorneys for the Named Plaintiffs Settlement Class ( Settlement Class Counsel ) are as follows: KELLER ROHRBACK L.L.P. JEFFREY LEWIS (SBN 66587) 300 Lakeside Drive, Suite 1000 Page 5 of 8

6 Oakland, CA Toll Free: The Court has decided that Keller Rohrback L.L.P. is qualified to represent you and all other Settlement Class members. You do not need to hire your own attorney because Settlement Class Counsel are working on your behalf. But, if you want your own attorney, you may hire one at your own expense. 7. What Are My Options? The purpose of this Notice is to inform you of the proposed Settlement Agreement and of your options. Each option has its consequences, which you should understand before making your decision. Your rights regarding each option, and the steps you must take to select each option, are explained below. DO NOTHING: OBJECT: If the Settlement Agreement is approved by the Court and you are a member of the Settlement Class you do not need to do anything to receive the benefits from the Settlement Agreement. You will release the claims against Contra Costa County brought in this lawsuit and all claims that could have been raised in the Lawsuit as described in Section 10 below and Section 12 of the Settlement Agreement. If you wish to object to any part of all of the Settlement Agreement, you may (as discussed below) write to the Court and to counsel about why you do not like the Settlement Agreement. You cannot exclude yourself if you wish to object. EXCLUDE YOURSELF: If you timely request to be excluded (opt out) from the Settlement Class (following the procedure in Section 8), you get out of this lawsuit. If the Court grants final approval of the Settlement Agreement, you will not receive the benefits from this Settlement Agreement and will not give up the right to pursue claims against Contra Costa County for the claims resolved through the Settlement Agreement on your own. The procedures for excluding yourself (opting out) and objecting are set forth below in the sections entitled How Do I Exclude Myself From This Settlement (Section 8) and How Do I Object To The Settlement? (Section 9). 8. How Do I Exclude Myself From This Settlement? If you do not want to take part in the settlement, you must sign, postmark, and mail a written Request for Exclusion (Opt Out) to the Settlement Administrator. The written request form must: (a) state your name, address, and telephone number; (b) explicitly state that you request not to participate in the Settlement; (c) be addressed to Retiree Support Group of Contra Costa County v. Contra Costa County, c/o Simpluris, Inc., P.O. Box 26170, Santa Ana, CA 92799; (d) be signed and dated by you; and (e) be mailed by First Class U.S. Mail, postage prepaid and postmarked no later than September 6, If, by that date you submit a timely request to exclude yourself from the Settlement Agreement that complies with the above requirements, you will no longer be a member of the Settlement Class. By excluding yourself from Settlement Class, you will retain whatever rights or claims you may have against Contra Costa County and the other Released Parties, and you will be free to pursue them, at your own expense, if you choose to do so, without any guarantee of success. 9. How Do I Object To The Settlement? Page 6 of 8

7 If you are a member of the Settlement Class who does not exclude yourself (opt out) of the settlement, you may object to the settlement. You may do so personally or through an attorney, by submitting your written objection to the Court via First-Class U.S. Mail, postage prepaid at the address, set forth below. Your objection must state your full name, address, and telephone number. It must also be signed and dated by you and clearly state the basis for your objection. To be valid and effective, any objection must be postmarked by September 6, Late objections will not be considered. All written objections and supporting papers must (a) clearly identify the case name and number (Retiree Support Group of Contra Costa County v. Contra Costa County, Case Number JST), (b) be submitted to the Court either by mailing them to the Clerk, United States District Court for the Northern District of California, 450 Golden Gate Avenue, San Francisco, CA 94102, or by filing them in person at any location of the United States District Court for the Northern District of California, and (c) be filed or postmarked on or before September 6, You may appear at the Fairness Hearing in person or through your attorney. Any objector, or their attorney, who wants to appear at the Fairness Hearing must state in writing their intention to do so at the time he or she submits his or her written objection. Objecting to the Settlement Agreement terms will not remove you from the Settlement Class. A Settlement Class Member who submits an objection remains bound by the Settlement Agreement. To remove yourself from the Settlement Class, you must state your desire to be excluded (opt out) from the settlement altogether in accordance with the procedures in Section 8 of this Notice. You can ask the Court to deny approval by filing an objection. You can t ask the Court to order a larger or different settlement; the Court can only approve or deny the settlement. If the Court denies approval, none of the benefits of the settlement will take effect for any retiree and the lawsuit will continue. If that is what you want to happen, you must object. 10. How Does This Settlement Affect My Rights? What Claims are Released? If you do not exclude yourself (opt out) from the settlement, you will release all of the claims resolved and described in Section 12 of the Settlement Agreement. This means that in exchange for the benefits you receive under the Settlement Agreement, you will not be able to sue, continue to sue, or be part of any other lawsuit against Contra Costa County or the other Released Parties that involves the Released Claims resolved through the Settlement Agreement. The parties who are released in addition to the County are described in the Settlement Agreement and include, among others, the Board of Supervisors and County employees and administrators. If the proposed settlement is approved by the Court, a Final Judgment will be entered by the Court. This Final Judgment following approval of the Settlement Agreement by the Court will bind you and Settlement Class members who do not request to be excluded from the Settlement Agreement. If you do not exclude yourself from the Settlement Agreement and the Settlement Agreement is approved, you will be forever barred from asserting any of the claims identified below arising out of or relating to the lawsuit (known as Released Claims ). The Settlement Agreement defines the Released Claims in Section 12 as follows: The Released Claims are all claims that were alleged or could have been alleged in the Lawsuit by the Releasing Parties, including without limitation, any and all claims, rights, demands, charges, complaints, obligations, actions, debts, suits and causes of action, whether known or unknown, suspected or unsuspected, accrued or unaccrued, for past or future injuries or damages, including without limitation, injunctive, declaratory or equitable relief, or monetary damages of any kind, including without limitation, statutory, actual, compensatory, consequential, special, or punitive however described, based on actions, representations, or omissions preceding Final Approval of this Agreement arising out of or relating in any way to any of the legal, factual, or other allegations made in the Lawsuit, or any legal Page 7 of 8

8 theories that could have been raised based on the allegations of the Lawsuit that relate in any way to the health care provided by the County to the Releasing Parties under law, contract, policy, practice, legislation or statute, including without limitation claims under federal, state, or local constitutions, statutes, codes, regulations, or resolutions, any claims that the County promised or guaranteed to pay a certain percentage of subsidy for retiree health care, or to treat retirees the same as current County employees with respect to health care subsidies, and any claims under any MOU, contract, tort or common law of any kind, or otherwise. 11. The Settlement Administrator The Settlement Administrator is Simpluris. The Settlement Administrator can be contacted as follows: Retiree Support Group of Contra Costa County v. Contra Costa County c/o Simpluris, Inc. P.O. Box Santa Ana, CA Telephone: (888) Information about the Settlement Agreement can also be found at the following website maintained by the Settlement Administrator That website has links to the notice and other important documents in the case. 12. Additional Information. This notice summarizes the proposed Settlement Agreement. For the full terms and conditions of the settlement, please see the Settlement Agreement available at or by accessing the Court docket in this case through the United States District Court for the Northern District of California s Public Access to Court Electronic Records (PACER) system at or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, 450 Golden Gate Ave, San Francisco, CA 94102, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays. IF YOU NEED MORE INFORMATION OR HAVE ANY QUESTIONS, you may call the Settlement Administrator (888) or Class Counsel at (800) You can also contact Class Counsel by mail or at the addresses listed in Section 6, and contact the Settlement Administrator by mail or phone at the information listed in Section 11. PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK S OFFICE OR INFORMATION ABOUT THIS SETTLEMENT. Dated: July 8, 2016 Honorable Jon S. Tigar United States District Judge Page 8 of 8