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Supreme Court Rejects Presumption of Lifetime Health Benefit Vesting, Calling for Analysis Under Ordinary Contract Principles
SCOTUSblogLink to more items from this source
Jan. 26, 2015

"Because the Court explicitly declines to apply ordinary principles of contract law to the contract before it, it is not so clear how the case will end up. The parties both argued strenuously that ordinary principles of contract law compelled a ruling in their favor, and nothing in the Court's opinion directly addresses what the court of appeals should do with that argument. But it is fair to expect the courts of appeals -- reading the 'tea leaves' of the Court's opinion -- to look carefully at the examples of misunderstood contract doctrine that the Court identifies. As it happens, all of those examples reflect incorrect interpretations that favored the employees."

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