LOS ANGELES (April 14, 2011) – Morrison & Foerster secured a major victory for the Association of Orange County Sheriffs (AOCDS) in a lawsuit brought by the County of Orange that threatened the pension benefits of AOCDS’ members and implicated similar public employee pension benefits throughout the state. On April 13, 2011, the California Supreme Court unanimously voted to deny the County’s petition for review of the Court of Appeal’s opinion affirming the judgment in favor of AOCDS.

The suit challenged a statutorily-authorized, pension benefit formula (3% at 50) unanimously approved by the Board of Supervisors in 2001, alleging that (to the extent the formula considered prior service) it (1) violated the California Constitution’s debt limitation provision and (2) amounted to unconstitutional extra compensation for work previously performed.

Morrison & Foerster Senior Of Counsel Miriam A. Vogel, who in January 2011 argued and won in the Court of Appeal on behalf of AOCDS, said, “The Supreme Court’s swift and unanimous rejection of the County’s petition for review confirms our view that the lawsuit was groundless, and we are of course very pleased with the Supreme Court’s decision.”

On January 26, 2011, Division One of the Second Appellate District affirmed the trial court’s judgment in favor of AOCDS. The Court of Appeal rejected the County’s debt limitation challenge, holding that the actuarial projection used to estimate the County’s future funding obligations to the Orange County Employees Retirement System was not a “liability” within the meaning of the debt limitation provision. As the Court of Appeal explained, the actuarial estimate did no more than project the impact of a change in a benefit plan, and it was not a legally enforceable obligation measured at the time of the County‘s 2001 resolution approving the 3% at 50 formula.

In addition to Ms. Vogel, the Morrison & Foerster team also included Senior Of Counsel Joseph L. Wyatt, Jr., partner James Bennett, and associate Tritia Murata.