Born v. City of Slidell
157 So. 3d 726
La. Ct. App.2014Background
- Dean Born worked for the City of Slidell from 1984 to 2008 and began retirement benefits in 2008; the City’s ordinance allowed retirees to continue City Plan health coverage with the City paying costs.
- The 2008 ordinance amended § 21-21 to require Medicare enrollment at age 65, with the City paying Medicare Advantage for those eligible and allowing continued City Plan coverage only for those not Medicare eligible.
- Born turned 65 on July 26, 2018, and in 2013 the City informed him he must enroll in Medicare or prove non-eligibility, threatening termination of City Plan coverage on July 26, 2013.
- Born filed a petition in July 2013 seeking declaratory relief and an injunction to prevent removal from the City Plan; the City raised a lib-erative prescription defense.
- The trial court denied the City’s prescription exception and found Born entitled to continue in the City Plan with 100% City-paid coverage; the City appealed.
- The appellate court affirmed, holding that Born had a vested right to continued City Plan participation and that the Plan Document did not terminate the City Plan.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Born’s claim was prescribed | Born’s right to post-65 City Plan coverage accrued when the City refused to provide it | Prescription began at amendment; claim filed after three years | Not prescribed |
| Whether Born had a vested right to continued City Plan coverage | Singletary control; Born met all conditions to participate | Plan Document reserved City’s right to amend; vesting not guaranteed | Born had a vested right; City must pay 100% of premiums |
Key Cases Cited
- Singletary v. City of Slidell, 97 So.3d 1087 (La. App. 1 Cir. 2012) (vesting rights under continued health benefits after retirement)
- Ledoux v. City of Baton Rouge/Parish of East Baton Rouge, 755 So.2d 877 (La. 2000) (prescription when right to payment becomes exigible depends on retirement/termination context)
- Fishbein v. State ex rel. Louisiana State University Health Sciences Center, 898 So.2d 1260 (La. 2005) (liberative prescription for compensation-related claims)
- Knecht v. Board of Trustees for State Colleges and Universities and Northwestern State University, 591 So.2d 690 (La. 1991) (vested rights concepts for employee benefits)