Underwood v. City of Chicago

Since 1982 Chicago has provided free or subsidized health care to certain retirees who receive pension benefits. In 2013 the ordinance establishing those benefits expired. After being notified that they would have to pay more for medical coverage in 2014, the retirees filed suit, alleging that any reduction of health care or increase in the retirees’ contribution toward it violated Art. XIII 5 of the Illinois Constitution, which says that “[m]embership in any pension or retirement system of … any unit of local government … shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired” and the Contracts Clause of the U.S. Constitution. Following removal, the district court dismissed the suit, ruling that the Illinois Pensions Clause does not apply to health care. While the case was on appeal, the Supreme Court of Illinois held that the Pensions Clause applies to health benefits. The Seventh Circuit vacated, noting that the Illinois case did not address the exact issue in this case. Because the Supreme Court of Illinois has granted review of a similar case and because this suit began in state court, relinquishing supplemental jurisdiction is preferable to certifying questions to the state judiciary. View "Underwood v. City of Chicago" on Justia Law