Robinson Bradshaw Defeats Class Certification on Behalf of SPX

In a case involving health benefits for retirees, Robinson Bradshaw secured victories in both the trial and appellate courts on behalf of SPX Corp. Several SPX retirees and their labor union brought a putative class action in federal court in Charlotte against SPX to prevent the company from changing the way it provides health benefits to its retirees. The plaintiffs argued that, under prior settlement agreements between SPX and the union, SPX was required to continue offering benefits through group health insurance plans and was not allowed to provide benefits through health reimbursement accounts.

Last Thursday, the Fourth Circuit Court of Appeals affirmed the trial court’s earlier ruling that denied the plaintiffs' request for a preliminary injunction to prevent SPX from transitioning to health reimbursement accounts. The case continued in the trial court throughout the appeal, and the trial court issued an order on Monday holding that the lawsuit cannot proceed as a class action. The court agreed with SPX's arguments that the plaintiffs did not satisfy the procedural requirements to proceed as a class, including lack of a "common question" and the potential for conflicts of interest between class members.

Robinson Bradshaw attorneys David C. Wright III, Cary B. Davis, Mark A. Hiller and Amanda R. Pickens represented SPX in this case.