Brown v. State

975 F.Supp.2d 209

Barbara G. BROWN, as President and on behalf of the Citywide Association of Law Assistants, Arthur Cheliotes, as President and on behalf of Local 1180, Communications Workers of America, AFL–CIO, John Clancy, as President and on behalf of the Court Officers Benevolent Association of Nassau County, Clifford Koppelman, as President and on behalf of Local 1070, District Council 37 AFSCME, AFL–CIO, Brenda Levinson, as President and on behalf of the Court Attorneys Association of the City of New York, Christopher Manning, as President and on behalf of the Suffolk County Court Employees Association, Inc., John Strandberg, as President and on behalf of the Supreme Court Officers Association, and Joseph C. Walsh, as President and on behalf of the New York State Court Clerks Association, Plaintiffs,

v.The State of NEW YORK, Andrew M. Cuomo, individually, and in his official capacity as Governor of the State of New York, New York State Unified Court System, Jonathan Lippman, individually and in his capacity as the Chief Judge of the State of New York, A. Gail Prudenti, individually and in her capacity as Chief Administrative Judge of the State of New York, New York State Civil Service Department, Patricia A. Hite, individually, and in her official capacity as Commissioner of the New York State Civil Service Department, New York State Civil Service Commission, Caroline W. Ahl and J. Dennis Hanrahan, individually, and in their official capacities as Commissioners of the New York State Civil Service Commission, Robert L. Megna, individually, and in his official capacity as Director of the New York State Division of the Budget, and Thomas P. Dinapoli, individually, and in his official capacity as Comptroller of the State of New York, and New York State and Local Retirement System, Defendants.

No. 1:13–CV–645 (MAD/CFH).

United States District Court, N.D. New York.

Sept. 30, 2013.

Greenberg Burzichelli, Greenberg P.C., Seth H. Greenberg, Esq., of Counsel, Lake Success, NY, for Plaintiffs.

Eric T. Schneiderman, Attorney General of the State of New York, Charles J. Quackenbush, Esq., Ralph Pernick, Esq., Assistant Attorneys General, of Counsel, Albany, NY, for Defendants.

MEMORANDUM–DECISION AND ORDER

MAE A. D'AGOSTINO, District Judge:

INTRODUCTION

On February 22, 2012, Plaintiffs commenced this action alleging that Defendants unilaterally increased the percentage of contributions that Plaintiffs, unions representing active and retired employees, are required to pay for health insurance benefits and thereby violated the Contracts Clause and Due Process Clause of the United States Constitution, impaired Plaintiffs' contractual rights under the terms of their respective Collective Bargaining Agreements (“CBA”), and violated state law. Plaintiffs seek injunctive relief, declaratory judgments, and monetary damages. See Dkt. No. 1 (“Complaint”). ¹ Presently before the Court is Defendants' motion to dismiss Plaintiffs' complaint pursuant to Fed.R.Civ.P. 12(b)(1) and 12(b)(6). Dkt. No. 16. Plaintiffs have opposed the motion. Dkt. No. 23.

BACKGROUND²

Plaintiff Citywide Association of Law Assistants (“CALA”) is the collective bargaining representative for certain non judicial court attorney employees in the civil, criminal, and family courts of New York City employed by Defendant New York State Unified Court System (“UCS”). Plaintiff Barbara Brown is the Chairperson of CALA. See Dkt. No. 1 at ¶¶ 11–12.

Plaintiff Local 1180, Communication Workers of America, AFL–CIO (“Local 1180”) is the collective bargaining representative for certain non judicial employees employed by UCS including, among others, Court Analysts, Administrative Services Clerks, and Supervising Photostat Operators. Plaintiff Arthur Cheliotes is the President of Local 1180. See id. at ¶¶ 13–14.

Plaintiff Court Officers Benevolent Association of Nassau County (“COBANC”) is the collecting bargaining representative for certain non judicial court employees in Nassau County employed by UCS. Plaintiff John Clancy is the President of COBANC. See id. at ¶¶ 15–16.

Plaintiff Local 1070, District Council 37, AFSCME, AFL–CIO (“Local 1070”) is the collective bargaining representative for certain non judicial employees employed by UCS. Plaintiff Clifford Koppelman is the President of Local 1070. See id. at ¶¶ 17–18.

Plaintiff Court Attorneys Association of the City of New York (“CAA”) is the collective bargaining representative for certain non judicial attorney employees in New York City employed by UCS. Plaintiff Brenda Levinson is the President of CAA. See id. at ¶¶ 19–20.

Plaintiff Suffolk County Court Employees Association, Inc. (“SCCEA”) is the collective bargaining representative for certain non judicial employees in Suffolk County employed by UCS. Plaintiff Christopher Manning is the President of SCCEA. See id. at ¶¶ 21–22.

Plaintiff New York State Supreme Court Officers Association (“SCOA”) is the collective bargaining representative for certain New York State Supreme Court officers employed by UCS. Plaintiff John Strandberg is the President of SCOA. See id. at ¶¶ 23–24.

Plaintiff New York State Court Clerks Association (“CCA” and together with CALA, Local 1180, COBANC, Local 1070, CAA, SCCEA, and SCOA, the “Unions”) is the collective bargaining representative for certain non judicial court clerks employed by UCS. Plaintiff Joseph C. Walsh is the President of CCA. See id. at ¶¶ 25–26.

Defendant State of New York, through Defendant UCS, is the employer of the members of the Plaintiff Unions. Both are parties to each of the Plaintiff Union's respective CBAs. See id. at ¶ 27. Plaintiff Andrew M. Cuomo is the Governor of the State of New York, Defendant Jonathan Lippman is the Chief Judge of UCS, and Defendant A. Gail Prudenti is the Chief Administrative Judge of UCS. See id. at ¶¶ 28, 31–32.

During the relevant time period, Defendant Patricia A. Hite was the Acting Commissioner of Defendant New York State Civil Service Department. See id. at ¶¶ 33–36. Defendants Caroline W. Ahl and J. Dennis Hanrahan were members of Defendant New York State Civil Service Commission. See id. at ¶¶ 38, 41. Defendant Robert L. Megna was the Director of the New York State Division of the Budget. See id. at ¶ 42. Defendant Thomas P. DiNapoli was the Comptroller of the State of New York responsible for authorizing the payment of salaries and pensions for current and retired UCS employees. See id. at ¶ 44.

Article XI of the New York State Civil Service Law (“CSL”) provides for a statewide health insurance plan for eligible State employees and retired State employees known as the New York State Health Insurance Plan (“NYSHIP” or “Empire Plan”). See id. at ¶ 45. New York Civil Service Law § 167(1) establishes the State contribution rate towards the cost of health insurance premium or subscription charges for the coverage of State employees and retired State employees enrolled in NYSHIP. See id. at ¶ 52. Prior to 1983, the State was required to pay the full cost of premium or subscription charges for the coverage of State employees and retired State employees enrolled in NYSHIP. See id. at ¶ 54. Chapter 14 of the Laws of 1983 amended Civil Service Law § 167(1)(a) to limit the amount that the State was required to pay towards the cost of premium or subscription charges for the coverage of State employees and retired State employees enrolled in NYSHIP, by providing that the State was required to contribute only ninety percent (90 %) of the cost of such premium or subscription charges for the coverage of State employees and retired State employees retiring on or after January 1, 1983. The State would continue to contribute seventy-five percent (75 %) for dependent coverage for State employees and retired State employees. See id. at ¶ 55.

Between 1983 and 2011, Civil Service Law § 167(8) provided, inter alia,

[n]otwithstanding any inconsistent provision of law, where and to the extent that an agreement between the state and an employee organization entered into pursuant to article fourteen of this chapter so provides, the state cost of premium or subscription charges for eligible employeescovered by such agreement may be increased pursuant to the terms of such agreement.

During that same time period, the Plaintiff Unions and Defendant State of New York negotiated and entered into several successive CBAs, which provided that the State contribution rate would be ninety percent and seventy-five percent for individual and dependent coverage, respectively. See id. at ¶ 56–58. Each of the Plaintiff Union's most recent CBAs covered the period beginning April 1, 2007, and expired March 31, 2011. See id. at ¶ 61. The Plaintiff Unions have not negotiated new CBAs with Defendants since the expiration of the most recent CBAs. See id. at ¶ 170.

Article 8 of the CBAs govern Health Insurance. Section 8.1 of the CBA provides as follows:

The State shall continue to provide health and prescription drug benefits administered by the Department of Civil Service. Employees enrolled in such plans shall receive health and prescription drug benefits to the same extent, at the same contribution level, in the same form and with the same co-payment structure that applies to the majority of represented Executive Branch employees.

Id. at ¶¶ 63, 65.

On August 17, 2011, the New York State legislature passed Chapter 491 of the Laws of 2011 (“Chapter 491”), which amended CSL § 167(8) effective as of April 2, 2011. See id. at ¶ 81. Chapter 491 replaced the word “increased” with the word “modified.” See id. at ¶ 84. As amended, CSL § 167(8) now reads:

Notwithstanding any inconsistent provision of law, where and to the extent that an agreement between the state and an employee organization entered into pursuant to article fourteen of this chapter so provides, the state cost of premium or subscription charges for eligible employees covered by such agreement may be modified pursuant to the terms of such...