Opinion ID: 2564358
Heading Depth: 3
Heading Rank: 2

Heading: Termination of the Plan Agreement

Text: On January 2, 2001, nine months into the twenty-four month contract, UPW notified Dawson that the Plan was terminated effective December 31, 2000 because the employer[s'] contribution that funded the . . . Plan [was] terminated, i.e., the employers had ceased to contribute the premiums necessary for the viability of the Plan. [5] Although UPW indicated it would pay Dawson for any operational expenses incurred through December 31, 2000, UPW demanded that the balance of the funds in the reserve be returned to UPW. On January 5, 2001, Dawson informed UPW of its position that UPW was in breach of the Plan Agreement inasmuch as the agreement did not provide the right to unilaterally terminate the contract. Dawson further advised UPW that: (1) the unused balance of premiums would remain in the reserve to assure delivery of legal services, education programs, operating costs and other financial obligations for the term of the contract (internal quotation marks omitted); and (2) [it] will continue to provide legal services to covered employees until such time as resolution is reached by approval of both parties (internal quotation marks and original brackets omitted). Correspondence between the parties revealed that UPW continued to maintain its position that Dawson comply with the termination notice while Dawson maintained its position that, because the contract had a two-year minimum term, it would continue to comply with its contractual obligations.