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On January 26, 2015, the Supreme Court issued its decision in M&G Polymers USA, LLC v. Tackett. The issue in this case is whether, when courts interpret collective bargaining agreements in Labor Management Relations Act (LMRA) cases, they should assume that silence concerning the duration of retiree health-care benefits means the parties intended those benefits to vest (and therefore continue indefinitely), or should require that it be stated explicitly (or at least stated in some way) that health-care benefits are intended to endure after the expiration of the collective bargaining agreement. 

In an opinion delivered by Justice Thomas, the Court held unanimously that when determining whether retiree benefits should continue indefinitely after the expiration of a collective bargaining agreement, courts should apply ordinary contract principles.  Those principles do not support a presumption that the agreement reflects an intent to vest retirees with lifetime benefits. The judgment of the Sixth Circuit was vacated and the case remanded for further proceedings. Justice Ginsburg filed a concurring opinion, which Justices Breyer, Sotomayor, and Kagan joined. 

To discuss the case, we have Michael DeBoer, who is an Associate Professor of Law at the Faulkner University School of Law.

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