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Surviving Spouses of Caterpillar Retirees Entitled to Damages for Cost of Substitute Healthcare
Wolters Kluwer Law & BusinessLink to more items from this source
Jan. 22, 2015
"[Caterpillar] argued that surviving spouses who terminated Caterpillar's insurance plan because of the employer's breach were not legally entitled to recover damages for the cost of obtaining substitute coverage and reimbursement for out-of-pocket healthcare costs that would have been covered had Caterpillar honored the 1988 [group insurance plan]. The court disagreed ... [and] determined that it was entirely foreseeable that imposing premiums on a group of surviving spouses would result in some individuals' being unwilling or unable to pay the premiums. Because the risk that the surviving spouses would be unable to afford to pay premiums for their insurance was created by Caterpillar's breach it must bear the costs as the defaulting party." [Kerns v. Caterpillar, Inc., No. 3:06-CV-1113 (M.D. Tenn. Jan. 6, 2015)]

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