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Wednesday, April 15, 2020

Requa/Lawrence Livermore Case Settlement Now Approved

Joe Requa
The case, which was originally named after Joe Requa, an employee of Lawrence Livermore, involved an assertion that retiree health was in effect a "vested" benefit similar to the pension. When Lawrence Livermore was put under revised management, the benefits offered were less than what would have been earned by a UC retiree.

While the case might eventually have tested the assertion, UC settled it with cash rather than have a court rule on the assertion. The court involved has now officially approved the settlement:

Judge Gives Final Approval to Settlement of Suit Between UC and LLNL Retirees Over Termination of Medical Benefits

Oakland, California – April 13, 2020 – Judge Winifred Smith of Alameda Superior Court gave final approval on Friday, April 10, 2020 to the settlement between University of California retirees who worked at the Lawrence Livermore National Laboratory (LLNL) and the Regents of the University of California in a case involving the termination of the retirees’ University-sponsored health care benefits.

In October 2007, the U.S. Department of Energy awarded the contract to manage the Lawrence Livermore National Laboratory (LLNL) to a private sector LLC, Lawrence Livermore National Security (LLNS).  The Regents then terminated University-sponsored retiree health care benefits for all retirees who had worked at LLNL.  This action triggered the lawsuit.

The settlement restores the security for retiree health care benefits by requiring The Regents to restore University-sponsored benefits if LLNS terminates the benefits it is providing or materially alters those benefits.  There are approximately 9,000 retirees, spouses and dependents in the class.  The average age of the class is approximately 80. 

The Regents will pay $80 million to provide an annual stipend for the next 20 years as well as past damages.   All members of the class will immediately receive a payment of $1,000 and certain class members who suffered higher losses will be compensated for a portion of their loss. The Regents will also pay $4 million for benefits counselors and contribute $500,000 toward the cost of administering the settlement.  A more detailed summary of settlement terms is provided as an appendix to this release.

“We are pleased to have been able to reach this settlement with the Regents, which will benefit retirees and their families for years to come, “said 77-year-old plaintiff Jay Davis, a former associate director at the Lab who retired in 2002.  “We were proud to be University of California employees for 50 years and we appreciate the way UC has worked with us over the last year to settle our claims.”

“We want to recognize the extraordinary efforts of the Court, the mediator, and all the parties and their counsel in working together to finalize this settlement in the midst of the disruption caused by the COVID-19 pandemic,” said Andrew Thomas Sinclair, lead counsel for the Livermore Lab retirees.  “By doing so, we’ll be getting important economic relief to class members, as well as guaranteeing the security of their health benefits in this very difficult time.”

 The class is represented by Andrew Thomas Sinclair of Sinclair Law Office in Oakland; Dov Grunschlag of Carter Carter Fries & Grunschlag in San Francisco; and Kathleen Fisher, Maya Maravilla and Alex Freeman of Calvo Fisher & Jacob in San Francisco.

The case is Moen, et al., v. Regents of University of California, et al., Case No. RG10530492, Superior Court, County of Alameda, California,

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