Navistar Violated Settlement Agreement In Swapping Drug Benefit Plan, Court Rules

Navistar International Corp. cannot unilaterally substitute Medicare Part D in lieu of a prescription drug benefit implemented as part of a 1993 class action settlement agreement with retirees of the company, the U.S. Court of Appeals for the Sixth Circuit ruled Dec. 14 (Shy v. Navistar Int’l Corp., 6th Cir., 11-3215/4143, 12/14/12).

Judge Eugene E. Siler Jr. determined that Navistar’s ability to unilaterally amend the plan was limited to “non-material technical and administrative amendments” and that its decision to substitute Medicare Part D for the plan’s original prescription drug benefit was outside the scope of its authority. ...