SCOTUS Overrules Sixth Circuit In Benefits Vesting Case

The issue in M&G Polymers USA, LLC v. Tackett was whether courts “must apply ordinary rules of contract interpretation when determining whether retiree healthcare benefits vest for life pursuant to the terms of a collective bargaining agreement,” according to a post from Fisher & Phillips, and Justice Thomas, speaking for a unanimous court, wrote a “scathing” opinion. The decision overrules a 6th Circuit opinion that had favored a presumption of lifetime vesting, and according to the Fisher & Phillips attorneys “should be used as a cautionary tale about using clear language when drafting contracts to make sure that the terms of a contract are those decided by the parties, and not by the courts.”