Casey, et. al. as class representatives v. Colorado Higher Education Insurance Benefits Alliance Trust, 2012COA134 (August 16, 2012)

Unexpected long-term disabilities are sometimes worse than death. This case involves CGIA immunity arising from a trust created by public colleges to provide employees with long-term disability benefits. When Mesa State pulled out of the trust, its employees sued the trust for their contributions, alleging breaches of fiduciary duties and inverse condemnation. If plaintiffs’ claims lie or could lie in tort, the defendants would be immune. The court of appeals held that the trustees’ fiduciary duties were written into the contract, so they were not tort claims. Neither the breach of the duty of good faith, nor the inverse condemnation claims were tort claims either. But the economic loss rule barred some contract damages. Fraud claims based on alleged misrepresentations by any attorney regarding benefits, however, could lie in tort because they alleged fraud.

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Filed under Contracts, Government, Torts

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