COURT OF APPEALS DECISION

Court of Appeals Rulings

The Georgia Court of Appeals issued an opinion in the case on February 19, 2009. On March 23, 2009, the Court of Appeals issued a substituted opinion that left intact the rulings in its February 19, 2009 opinion and also denied the parties’ motions for reconsideration. You may view and download a copy of the Court of Appeals rulings by clicking this link.

The Court of Appeals made the following rulings about the claims of class members:

(1) The Court held that a six-year statute of limitation applies to claims for underpaid monthly benefits.

(2) The Court held that Class Members’ claims for monthly underpayments accrue monthly. This means that no claims are barred that accrue at any time on or after April 4, 1998 (being six years before the suit was filed on April 4, 2004). Under the ruling, living class members would receive past underpaid benefits from May 1, 1998 through the time of payment, along with future monthly increases. Estates of deceased retirees and beneficiaries could also recover for underpaid benefits from May 1, 1998 through the dates of death.

(3) The Court determined that pre-judgment interest on past, underpaid benefits is fixed at the rate of 7 per cent from the due date of the payments through February 29, 2008. The Court also held that post-judgment interest of 3 per cent plus the prime rate effective as of February 29, 2008 will be added to underpaid benefits beginning on the judgment date, February 29, 2008.

(4) The Court affirmed the Fulton County Superior Court’s ruling setting aside thirty per cent of the common fund for payment of the costs of litigation and attorney fees.

On April 10, 2009, the Plaintiffs filed a petition in the Georgia Supreme Court asking that court to review the decision of the Court of Appeals that a six-year statute of limitations applies. On April 13, 2009, the Defendants filed a petition in the Supreme Court asking it to review the decision of the Court of Appeals that claims for monthly underpayments accrue monthly. The Supreme Court has not yet decided whether it will consider either of those questions.

Proposed Resolution

The Plaintiffs and the Defendants have agreed to resolve the case by leaving the Court of Appeals’ rulings in place and by seeking to withdraw their petitions asking the Supreme Court to review the Court of Appeals’ decision. The Fulton County Superior Court has preliminarily approved this resolution. The deadline for submitting objections to the proposed resolution is May 14, 2009. A hearing about this matter has been scheduled on May 18, 2009 at 10:00 a.m. in the Fulton County Superior Court. For more information, please click on the section of this website entitled “Notice of Proposed Resolution and Hearing.”

Time for Further Determinations With Respect to Payment

Due to the uncertainty of pending legal proceedings, it is impossible to state which Class Members will receive payments and when payments will be made.

This website will be updated with additional information as it becomes available.