Supreme Court Rules Retiree Health Benefits Not Vested for Life

The Court found, in a unanimous opinion, that the retiree health benefits ended when the collective bargaining agreement ended.

Document Excerpt
In this case, the Sixth Circuit held that the same Yard-Man inferences it once used to presume lifetime vesting can now be used to render a collective-bargaining agreement ambiguous as a matter of law, thus allowing courts to consult extrinsic evidence about lifetime vesting. This analysis cannot be squared with Tackett. A contract is not ambiguous unlessit is subject to more than one reasonable interpretation, and the Yard-Man inferences cannot generate a reasonable interpretation because they are not “ordinary principles of contract law,” Tackett, supra, at ___ (slip op., at 14). Because the Sixth Circuit’s analysis is “Yard-Man re-born, re-built, and re-purposed for new adventures,” 854 F. 3d, at 891 (Sutton, J., dissenting), we reverse.


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