Opinion ID: 6982231
Heading Depth: 2
Heading Rank: 3

Heading: COLA Amendment Claim

Text: In the district court’s opinion dated October 14, 1997, the court determined that the plaintiffs lacked standing to bring their claim challenging the Union’s attempt to rescind the COLA amendment. See Dev-lin, 1997 WL 634179, at -5. The court found that the plaintiffs did not meet the “injury in fact” requirement necessary to show that a case or controversy addressable by the judiciary under Article III of the Constitution existed. See id. at . The court noted, however, that [i]f Defendants win the Bobo case, and thus succeed in rescinding the COLA amendment, then Plaintiffs may be able to satisfy the constitutional standing requirements. At this time, however, there is no indication about the outcome of the Bobo litigation, and it is therefore premature for the Court to consider this claim on the merits. Id. 5 On September 8, 1997, the district court in Bobo I had determined that the Union could rescind the COLA amendment as applicable to retirees who retired after 1991 because such persons had not relied on the COLA in making their decisions to work or to retire. See Scardelletti, 1997 U.S. Dist. LEXIS 14498, at -33. Shortly thereafter, in a letter from Robert A. Scardelletti dated October 10,1997, participants and beneficiaries of the TCU Staff Retirement Plan were notified that, effective November 1, 1997, the COLA amendment was eliminated as to those who retired or otherwise terminated their employment prior to January 1,1991. Appellants then moved in November of 1997 for (1) reconsideration in Devlin I and Devlin II; (2) vacatur of the judgments in Devlin I and Devlin II; and (3) a preliminary injunction in Devlin II. The district court denied these motions. See Devlin v. Transportation Communications Int’l Union, Nos. 95 Civ. 0742 & 95 Civ. 10838, 1998 WL 37545 (S.D.N.Y. Jan.29, 1998). Specifically, with respect to the COLA, the court said that the Court denies Plaintiffs’ motion despite the developments of the Scardellet-ti v. Bobo case in the District of Maryland .... In the instant case, there is an action proceeding in the District of Maryland that will decide the issue that Plaintiffs attempt to reopen in Devlin II. Many of the Devlin II plaintiffs are involved in that Maryland action, and the District of Maryland has much familiarity with the COLA issue from its involvement in Scardelletti v. Bobo. On this basis, the court concludes that Plaintiffs will not be unduly prejudiced by a denial of their Rule 59 motion in Devlin II. For similar reasons, the Court denies Plaintiffs’ Rule 60 motion regarding the COLA issue. Id., 1998 WL 37545, at . The court then determined that the plaintiffs’ Rule 65 motion for a preliminary injunction was moot. See id. The appellants now take issue with the district court’s denial of the preliminary injunction and determination that they lacked standing. With respect to the district court’s initial determination on standing, we review the court’s determination de novo. See Rent Stabilization Ass’n v. Dinkins, 5 F.3d 591, 594 (2d Cir.1993) (district court’s dismissal for lack of standing is reviewed de novo, unless it relied on the resolution of disputed facts). Doing so, we can easily affirm the district court. At the time the court issued the opinion addressing the standing issue, the Maryland district court handling Bobo I had ruled that the COLA amendment could be repealed, and the amendment had been repealed, effective November 1, 1997. However, given that the district court in Devlin II issued its opinion regarding standing and the COLA issue only five days after the date on the letter from Robert A. Scardelletti to all participants and beneficiaries of the TCU Staff Retirement Plan, it is likely that the district court did not know that the amendment had been repealed, effective November 1, 1997. It would be a lilliputian academic exercise for us to discuss whether there actually were standing at the time the district court issued its opinion. Suffice it to say that we agree with the district court’s determination that, given the information it had before it on October 15, 1997, it seemed that the plaintiffs had no standing because the amendment had not yet been repealed. The more relevant question is whether we can affirm the district court’s ruling on January 29, 1998, when the court had before it the information that (1) the district court in Bobo I allowed the COLA to be repealed as to those who had terminated employment with TCU prior to 1991; (2) the COLA had in fact been repealed; and (3) an action determining the legality of the repeal was still pending in Maryland. We determine that we can. The district court addressed Federal Rules of Civil Procedure 59, 60, and 65 in its January 29, 1998, rulings on the COLA amendment. Rule 59(e) provides for the altering or amending of a judgment. See Fed.R.Civ.P. 59(e). Rule 60(b) allows relief from a judgment or order when evidence has been newly discovered or for any other reason “justifying relief from the operation of the judgment.” See Fed.R.Civ.P. 60(b)(2), (6). Rule 65 provides for the issuance of a preliminary injunction. See Fed.R.Civ.P. 65. We review a district court’s ruling on motions under all of these Rules for an abuse of discretion. See McCarthy v. Manson, 714 F.2d 234, 237 (2d Cir.1983) (Rule 59); Transaero, Inc. v. La Fuerza Aerea Boliviana, 162 F.3d 724, 729 (2d Cir.1998) (Rule 60); Securities and Exch. Comm’n v. Cavanagh, 155 F.3d 129, 132 (2d Cir.1998) (Rule 65). We find that the district court’s actions in refusing to re-open Devlin II with respect to the COLA amendment and with respect to the preliminary injunction did not constitute an abuse of discretion. The exact COLA issue that the appellants are pursuing in Devlin II is being addressed by the district court in Maryland. While appellants argue that Bobo II was filed after Devlin II, that consideration is not determinative, and the district court’s failure to weigh it heavily was not an abuse of discretion. It seems eminently sensible that the Maryland district court should resolve fully the COLA amendment issue, given that that court already ruled that the amendment could be repealed as to those who retired prior to 1991, and that court is already entertaining a suit in which the legality of such a repeal is at issue. Moreover, though Devlin did not want to be the lead defendant in Bobo II because the case was pending in Maryland and Devlin was residing in the Northeast, the fact remains that Devlin and others in his position can be actively involved in the case. See Fed. R.Civ.P. 24(b). We affirm the district court’s resolution of the COLA amendment issue.