Caterpillar Logistics Services Retirees Win a Preliminary Injunction Providing Them Premium-Free Retiree H...( United State...),Health

United States District Court Judge Aleta A. Trauger, sitting in Nashville, Tennessee, granted a motion for a preliminary injunction brought by Caterpillar retirees to provide them with retiree healthcare they were promised by the company. Caterpillar was ordered to provide Caterpillar Logistics Services (“CLS”) retirees with the same level of retiree healthcare currently provided to Caterpillar retirees who retired before January 1, 1992.

NASHVILLE, Tenn. (Business Wire EON) September 17, 2008 -- "This is an important victory for the retirees who can now get the health care they desperately need and can fully enjoy the benefits they were promised for the decades of service they provided to the company," said attorney Beth Alexander, of Lieff Cabraser Heimann & Bernstein, in Nashville.

Background of the Litigation

Caterpillar was enjoined from deducting monthly charges for retiree healthcare from the pensions of the CLS subclass. These monthly charges ranged from $115 to $250 per month, reducing these former hourly workers' modest pensions as much as 25%. Caterpillar was also enjoined from charging the retirees deductibles of $300 (for individuals) or $600 (for families) before the health insurance applies and other costs specified in the court's order.

The Court held a three-day hearing on the Motion in July. On September 16, 2008, the Court found that the testimony of the retirees demonstrated irreparable harm from the financial hardship that they are suffering and will continue to suffer due to the changes in their retiree healthcare that took effect in 2004, resulting in ever-increasing costs since then.

The evidence showed that the retirees were delaying surgery, stopping their prescribed medications, and putting off doctor visits to reduce their increasingly unmanageable medical costs. One of the class members put o
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