Case details

Notice through regular mail was acceptable, defense claimed

SUMMARY

$0

Amount

Verdict-Defendant

Result type

Not present

Ruling
KEYWORDS
emotional distress, mental, psychological
FACTS
Between October 2011 and November 2012, plaintiff Richard Katzman, a retired in-house attorney for the Los Angeles County Metropolitan Transportation Authority, was not paid his pension. Katzman previously worked as in-house counsel for the Los Angeles County Metropolitan Transportation Authority, as well as worked for the Santa Clara Valley Transportation Authority and the county of Los Angeles. On April 2, 2007, Katzman retired from his position with the LACMTA. As a result, he was entitled a pension from the LACMTA and was subsequently paid monthly since his retirement date. Under the LACMTA policy, every two years an audit form was sent in the mail to pension recipients in order to verify the recipients that received benefits. As a result, the recipient was to fill out the audit form and get the form notarized. If the LACMTA did not receive the audit form, the recipient’s payments would be suspended until the missing audit form was returned or information of the circumstances was given. In 2011, the LACMTA did not receive an audit form back from Katzman. As a result, he was not paid from October 2011 until November 2012, as Katzman would not return the audit form. Katzman sued the LACMTA and the county of Los Angeles. Katzman alleged that the defendants’ actions constituted a denial of due process for depriving him of monthly payments. He also brought claims under the class-of-one equal protection clause of the Fourteenth Amendment, under the rational basis review. The county and the claims against it were ultimately removed from the case. Katzman claimed that he was never informed about the policy regarding bi-annual audits and that he only learned about it in October 2011, after he noticed that his pension payment had not been electronically deposited into his account. He alleged that as a result, he contacted the LACMTA and was told that the payment had been suspended because he had failed to return the audit form that was mailed to him that year. Katzman contended he simply did not receive the audit form. He claimed that he traveled frequently and that mail service at his home was “spotty,” and therefore a single audit letter provided insufficient notice that his pension might be suspended. Thus, he claimed that the LACMTA’s procedure was not appropriate and suggested that the LACMTA put additional notice procedures in place before suspending pension payments. For example, Katzman suggested that the LACMTA should call the recipient before his/her payment was to be suspended or that the LACMTA should use certified mail instead of regular mail. Defense counsel contended that the LACMTA provided fair process and that notice through regular mail was accepted for the other participants. Counsel also contended that sometimes the audit form would not arrive from a participant, but that it was not permanent and that if Katzman resolved the conflict earlier, everything would have been resolved within one month and Katzman’s payment would have only been delayed one month., Katzman had pensions from other employers and was paid $639.86 monthly from the LACMTA alone. He eventually did sign and return the audit form for the subject year of 2011, and his payment was then paid to him. Thus, Katzman sought recovery of emotional distress damages for the deprivation of his civil rights. Defense counsel argued that although Katzman’s payments were suspended from October 2011 through November 2012, he was eventually paid those amounts once he returned the audit form. Thus, defense counsel contended that Katzman was made whole by the recovery of the actual economic loss.
COURT
United States District Court, Northern District, San Jose, CA

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