UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
MARCATANTE, et al. v. CITY OF CHICAGO, Case No. 06 C 0328 NOTICE OF CLASS ACTION To: All persons who worked for the City of Chicago (the "City") after June 30, 2003, retired in 2004 pursuant to the early retirement incentive program (ERIP) and were represented until retirement by one of the building trade unions that negotiated as a coalition with the City regarding the 2003-2007 collective bargaining agreements (CBAs).
This notice informs you about a class action lawsuit to recover retroactive wage increases allegedly due to a class of persons who worked for the City after June 30, 2003, retired from employment pursuant to the ERIP offered to City employees, and who, during their employment, were in bargaining units represented by building trade unions that were part of the coalition that negotiated jointly with the City of Chicago regarding the 2003-2007 CBAs and who did not designate their unions as their bargaining representatives after their retirement for purposes of the 2003-2007 CBAs.
On March 31, 2008, the United States District Court ruled that the members of the class of persons described above were entitled to receive the same retroactive hourly wage or rate of pay that the City agreed to pay to those who were still working on July 18, 2005. As a member of this class, you may be entitled to back pay and possibly an increase in pension benefits.
The District Court has authorized this notice to inform you about the case. This is not a solicitation from a lawyer. You have not been sued.
Why Did You Receive this Notice? The District Court certified the class of persons identified above. The named plaintiffs (John Marcatante, John Klaes, Jerry Whitley, and Thomas Sadowski) sued the City for failing to pay class members the hourly wage or rate of pay agreed to for current employees under the 2003-2007 CBAs for the period of June 30, 2003 to July 18, 2005. The City has listed you as one of the employees in the class. That is why you have received this notice.
What Is a Class Action? In a class action lawsuit, one or more people called "Class Representatives" (in this case, John Marcatante, John Klaes, Jerry Whitley and Thomas Sadowski) sue on behalf of a class of persons who have similar claims. The court decides the issues for everyone in the class, except for those who choose to exclude themselves from the Class.
What Does this Lawsuit Claim? The Class Representatives claimed that the City should have given the retroactive pay increases required under the 2003-2007 CBAs not only to persons still working for the City when the CBAs were adopted in 2005 but also to those who retired pursuant to the ERIP in 2004. The Class Representatives had five counts or legal bases for recovery. They contended that the City promised such retroactive payment by a written letter agreement to extend the expired CBAs. In the alternative, they contended that they had an implied contractual entitlement to a reasonable rate of pay for work they performed before retiring. That is, even if there were no express contract fixing wages, they still had a legal claim to the same rate of pay received by others performing the same work. Under either bases, the Class Representatives contended they should be paid at the same hourly rate as active employees were under the CBAs adopted in 2005, after the class members retired. In addition, the Class Representatives contended that the City denied the class members due process and equal protection under the Fourteenth Amendment to the U.S. Constitution when the City denied class members said retroactive pay increases and an opportunity to be heard or to receive certain information relating to the pay increases in a timely manner.
On March 31, 2008, the District Court denied the Class Representatives? motion for summary judgment on Counts I, II, III, and V relating to the express contract claim, the due process claims and the equal protection claim and granted the City?s motion for summary judgment in its favor on those four counts or claims. However, the District Court granted the Class Representatives? motion for summary judgment on liability on Count IV based on the "implied contract" claim described above. For that reason, the District Court held that the City is liable for the higher wages allegedly due to class members.
However, the District Court has not granted final judgment as to damages or determined the amount of monetary relief. The Class Representatives seek as damages retroactive pay increases from June 30, 2003 until the date each class member retired. In addition, the Class Representatives seek prejudgment interest on that amount, and an adjustment in class members? pension benefits to reflect the higher rate of pay claimed by the Class Representatives.
In short, there is no final judgment at this time. Furthermore, when there is a final judgment, the City of Chicago may appeal the judgment.
It is not possible to say at this time when or how the class action will be resolved.
What Happens If I Do Nothing At All? You are already a member of the class. You have the right to remain a class member or exclude yourself from this lawsuit. You must decide this now.
If you want to be included as a class member and keep the possibility of receiving money or benefits from this lawsuit, you do NOT have to do anything. By doing nothing, you will remain a member of the class. All rulings made by the court will apply to you, and any settlement between the parties would include you, unless you are notified otherwise.
If you move or change your mailing address, you should notify the lawyers representing the class (Class Counsel) so that they can inform you of any final judgment or settlement and send you any money to which you may become entitled.
Why Might Anyone Want to be Excluded From this Lawsuit? You may not want to be part of this lawsuit because you want to bring your own lawsuit or you do not believe the City did anything wrong. If you exclude yourself from this lawsuit to start your own case, you should consult an attorney soon because your claims are subject to a statute of limitations.
If you exclude yourself from this class, you will play no further role in this lawsuit, and you will not benefit from any judgment or settlement in this lawsuit.
How Do I Ask the Court to Exclude Me? If you do not want to be part of this suit, you must write to Class Counsel at the addresses listed below and clearly state your request to be excluded with a statement like: "I want to be excluded from the Class in Marcatante et al. v. City of Chicago." Be sure to include your name and address and sign the request. You may also email Class Counsel at
info@frankelandcohen.com and state that you want to be excluded from the Class. You must mail or email your request within sixty (60) days of the postmark on this notice.
Who Are My Lawyers in this Case? The District Court has decided that the following lawyers are qualified to represent you and the other class members as Class Counsel. The Class Counsel are:
Thomas Geoghegan, Jorge Sanchez - Despres, Schwartz & Geoghegan - 77 West Washington St., Ste. 711, Chicago, IL 60602 (312) 372-2511.
Robert R. Cohen, Scott J. Frankel, Matthew D. Lango - Frankel & Cohen - 77 W. Washington St., Ste. 1720, Chicago, IL 60602 (312) 759-9600.
How Will Class Counsel Be Paid? When there is a final judgment as to the proper wages, benefits and prejudgment interest, if any, due to you and other members of the class, the Class Counsel plan to file a petition for their legal fees and expenses. When they file such a petition, they may seek to recover up to a third of the total recovery to the class as payment for legal fees and expenses in bringing this class action.
When Class Counsel file such a petition, you will receive a notice of a Fairness Hearing to determine whether or not the District Court should award the requested fees and expenses. All members of the Class will receive notice of the Fairness Hearing and will have an opportunity, if they wish, to object to the requested fees and expenses.
At this time, Class Counsel have not filed such a petition, and no Fairness Hearing has been scheduled.
Will I Receive an Additional Notice? As stated above, if you do not choose to exclude yourself from this lawsuit, you will receive at least one additional notice when final judgment is entered or the case is settled. You will receive an additional notice when the final judgment is entered and when the petition for legal fees has been filed. You will have an opportunity to object at the "Fairness Hearing" that will be scheduled on the petition for legal fees and costs. The procedures for the "Fairness Hearing" will be explained in the notice that you will receive later. In the meantime, you can learn about any significant change in the status of the case at the following website:
www.frankelandcohen.com/marcatantecityofchicagoretireecase.jsp DO NOT CALL THE COURT What Happens Now? The District Court has ruled in favor of the class on liability. The Class Representatives will now proceed to a trial on damages. When a final judgment for damages has been entered, Plaintiffs? counsel will file a petition for legal fees. At that time you will receive the additional notice by mail, just as you received this one.