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New Jersey's top court sides with Christie on pensions
Class Action |
2015/06/10
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New Jersey's top court sided with Gov. Chris Christie on Tuesday, giving him a major victory in a fight with public worker unions over pension funds and sparing a new state budget crisis.
The state Supreme Court overturned a lower-court judge's order that told the Republican governor and the Democrat-controlled Legislature to work out a way to increase pension contributions for the current fiscal year, which ends June 30.
In a 5-2 ruling, the court said there wasn't an enforceable contract to force the full payment, as unions had argued there was.
"That the State must get its financial house in order is plain," Justice Jaynee LaVecchia wrote in the majority opinion. "The need is compelling in respect of the State's ability to honor its compensation commitment to retired employees. But this Court cannot resolve that need in place of the political branches. They will have to deal with one another to forge a solution to the tenuous financial status of New Jersey's pension funding in a way that comports with the strictures of our Constitution."
She noted that the state is obligated to pay individual retirees their pensions. That's not in danger this year, but unions say the funds could start going insolvent within the next decade.
Justice Barry Albin dissented and was joined by Chief Justice Stuart Rabner.
"The decision unfairly requires public workers to uphold their end of the law's bargain — increased weekly deductions from their paychecks to fund their future pensions — while allowing the State to slip from its binding commitment to make commensurate contributions," Albin wrote. "Thus, public workers continue to pay into a system on its way to insolvency."
One of Christie's signature achievements as governor has been a 2011 deal on pensions for public workers. Employees had to pay more and the government was locked into making up for years of skipped or reduced contributions.
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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