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Employment Law
Constitutional Contract
Class Action

John R. Anderson, et al. v. The Regents of the University of California, et al.

Published: Dec. 17, 1994 | Result Date: Nov. 29, 1994 | Filing Date: Jan. 1, 1900 |

Case number: 950666 –  $9,748,000

Judge

Stuart R. Pollak

Court

San Francisco Superior


Attorneys

Plaintiff

Lowell Finley


Defendant

David M. Birnbaum


Facts

During the 1991-92 academic year, Defendants The Regents of the University of California, UC President Jack Peltason, and other statewide administrators, paid no promotion or merit salary increases to the Plaintiffs and approximately 2,500 faculty members.

Settlement Discussions

No offers or demands were exchanged prior to this settlement.

Damages

100% of the unpaid promotion and merit salary increase amounts for the full 1991-92 year (no adjustment in retirement benefits and no prejudgment interest).

Result

This is the first case in which a court has ruled that the Contract Clause of the United States Constitution applies to the legislative acts of The Regents of the University of California. The case is also an innovative use of bifurcation to defer class certification issues, streamlining and expediting the litigation.

Other Information

On November 23, 1993, following extensive briefing and argument by both sides, Judge Pollak issued a Statement of Decision and Order, ruling that Defendants had violated the Contract Clause of the federal Constitution by suspending for 6 months payment of promotion and merit salary increases to the Plaintiffs, after the 1991-92 academic year commenced. Judge Pollak ordered payment of the salary increases for one half of the year in question, plus interest and adjustment to benefits. An earlier 6-month delay of the promotion and merit salary increases was not found to be unconstitutional, since it was decided upon prior to the commencement of the 1991-92 academic year. Accordingly, both sides filed motions for reconsideration which were denied on February 10, 1994. Settlement negotiations followed, leading to the filing in August of 1994 of a joint motion for class certified at a hearing on August 27, 1994, and the settlement was approved at a hearing on November 4, 1994. The settlement agreement calls for payment of 100% of the unpaid promotion and merit salary increase amounts for the full 1991-92 year, without adjustment in retirement benefits and without prejudgment interest.


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