Retirees May Pursue Action For Lifetime Medical Benefits From University Of California.

When Lawrence Livermore National Laboratory was operated by the University of California, all retirees received University-sponsored group health insurance benefits. In 2007, management and operation of Livermore was transferred to a private consortium, and in 2008 retirees’ University-sponsored group health benefit was terminated. Retirees brought an action for mandamus against the Regents, claiming inter alia that the elimination of their University-sponsored group health insurance medical benefits constituted an unconstitutional impairment of either express or implied contract the Regents formed with the retirees.  The trial judge sustained the Regents’ demurrer without leave to amend.  The Court of Appeal reversed, finding the pleading stated causes of action for breach of implied contract, promissory estoppels and equitable estoppels, but not breach of express contract.  Requa v. The Regents of the University of California  (Cal. App. First Dist., Div. 5; January 29, 2013) 213 Cal.App.4th 213.