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Hagenberg v. Avedisian

7/7/2005



This case came before the Supreme Court on May 10, 2005, on cross-appeals by the plaintiff, Albert E. Hagenberg (plaintiff or Hagenberg); and the defendants, the City of Warwick (city or Warwick), Scott Avedisian, in his official capacity as mayor of Warwick, David C. Olsen, in his official capacity as city treasurer, the Warwick Board of Public Safety (board), Michael Ryan, in his official capacity as chairman of the board, Marshall Martin and Leslie Waleska Baxter, in their official capacities as members of the board, and Oscar Shelton (Shelton), in his official capacity as director of the city's personnel department (collectively defendants). This dispute arose from a decision by the city to discontinue supplementary medical benefits for retired police and firefighters receiving disability pensions as a result of career-ending on-the-job injuries. The plaintiff appeals from the trial justice's denial of his claims for declaratory and injunctive relief, and the defendants appeal from the judgment granting the plaintiff's individual claim for continued benefits based upon a finding of promissory estoppel.


Facts and Travel


This case was tried to the court on an agreed statement of facts. The plaintiff retired from his position as a Warwick police officer because of an on-the-job injury and began receiving disability pension benefits. For many years, he and the other retired disabled city police and firefighters enjoyed the benefit of health care coverage under the city's insurance plan (for those retirees under the age of sixty-five) or Medicare (for those over sixty-five years of age), supplemented by payments made by the city for any portion of their non-covered expenses, including copayments, for claims relating to the on-the-job injuries that precipitated their retirement. A letter from Warwick's then police chief, John F. Coutcher, dated June 28, 1979, was included with the agreed statement of facts; it provides, in part, as follows:


"As a result of [a meeting with Hagenberg, his attorney, and the Warwick Board of Public Safety], the oard unanimously passed a motion that the city is indeed liable for the medical bills arising out of his service-connected illness. They also stated they felt that his illness was definitely service-connected, and he was entitled to these benefits under the Rhode Island General Laws, specifically, [§] 45-19-1."


By letter dated December 11, 2003, Shelton informed the disability pension recipients, including Hagenberg, that, as of January 1, 2004, medical payments for jobrelated injuries and illnesses would be treated the same as their non-job related ailments (Shelton's letter). Shelton purportedly based this policy change on this Court's opinion in Elliott v. Town of Warren, 818 A.2d 652 (R.I. 2003). The city acknowledges that the new policy will result in increased costs to the retirees involved.


On January 20, 2004, plaintiff filed a verified complaint in Superior Court setting forth three claims. In count 1, plaintiff sought a declaration that, pursuant to G.L. 1956 § 45-19-1, known as the Injured on Duty (IOD) statute, "the members of the [Warwick Retired Police and Fire Fighters Association (association)] retired on a disability pension are entitled to have 100 [percent] of their medical expenses for on-the-job injuries paid for by efendants post retirement." Count 2 was a prayer for injunctive relief "temporarily and permanently restraining and enjoining efendants from effectuating the policy set forth in [Shelton's letter]" or otherwise interfering with the provision of benefits described in § 45-19-1. Finally, in count 3, plaintiff requested that the court issue a writ of mandamus ordering the city t

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