Facts

Thomas Grant, a former administrative officer for the City of Los Angeles, filed a lawsuit against the city in relation to his retirement via the city's early Retirement Incentive Program.

PLAINTIFF'S CONTENTIONS:
According to a second amended complaint, Grant was an employee of the city for approximately 38 years and most recently worked as a senior administrative analyst. On Nov. 22, 2009, Grant applied for early retirement benefits under the Los Angeles City Employees' Retirement system, submitting an online contract that provided certain duties and obligations. According to the contract, Grant was to get certain benefits and could rescind the contract to continue working instead. The contract stated that he had seven days to rescind after getting notification of approval in the program. After Grant received notification on Nov. 28, he informed the city of his rescission on Dec. 4, because he wanted to retain his position. However, plaintiff alleged that the city failed to allow him to rescind and required him to take an early retirement. In addition, he was informed on March 12, that he would have to pay $12,621.69 for a Government Service Buyback, which he claimed exceeded the amount the city represented.

Grant alleged the city breached its written contract by not allowing him to rescind the early retirement contact, as well as the covenant of good faith and fair dealing.

DEFENDANT'S CONTENTIONS:
Defendant argued that plaintiff failed to state a legal cause of action, that each claim was barred the statute of limitations, plaintiff failed to exhaust his administrative remedies, failed to present a government tort claim as required, and that defendant had immunity from the lawsuit. In addition, defendant argued that all of its actions were privileged based on its good faith belief that its actions were needed to protect its legal rights lawfully and based on legitimate business reasons.

Result

The Los Angeles City Council approved a $130,000 settlement of the matter.