Former superintendent sues Anaconda school district

By Erin Nicholes - 11/09/2008

ANACONDA — A former superintendent has sued the Anaconda school district for refusing to pay for his health insurance after he retired.

Jim Whealon, who left in August, has filed a complaint in district court accusing the school district of breach of contract and other wrongdoing by stopping payment of his health insurance premiums after his retirement.

Whealon's attorney, Brenda Wahler of Helena, could not be reached Friday.

The lawsuit, filed Oct. 15, asks the court to require the district to pay Whealon's premiums until he becomes eligible for Medicare, as well as unspecified damages.

Also on Oct. 15, Whealon's attorney filed an application for a temporary restraining order and preliminary injunction asking the court to require the district to pay Whealon's premiums to maintain his coverage until the lawsuit has been resolved.

Current Superintendent Tom Darnell said he was aware only of a grievance filed within the district, and the restraining order and injunction application filed with the court. He said he was not aware of the complaint.

"We haven't been served with anything other than a grievance," he said Friday, adding the school board will hear that issue Wednesday night.

Attorney Debra Silk with the Montana School Boards Association, who Darnell said is representing the district, could not be reached for comment.

District policy The lawsuit claims the school district had a policy of paying health insurance premiums for superintendents and other workers who retired prior to Medicare eligibility, and that Whealon specifically bargained with the school board for that coverage during contract negotiations.

But when Whealon was retired, the complaint said, he was informed he was not eligible for continued health benefits paid by the district, and that if he wanted to keep his coverage he needed to pay $1,266 a month in premiums out of pocket.

The suit said Whealon filed a grievance with Darnell over the health insurance and other issues, which was denied. Whealon has appealed the denial to the board.

The suit alleges that the district breached its contract with Whealon when Darnell told him the district would not pay his premiums, breached its fiduciary duty by first promising to pay the premiums then forcing Whealon to pay them out of pocket and acted in bad faith by enticing Whealon go retire early then "withholding one of the incentives for retirement ..." Injunctive relief The complaint asks for injunctive relief because Whealon has been paying his premiums since September and is unlikely to acquire comparable medical coverage to due age and medical conditions.

"The absence of insurance exposes (Whealon) and his family to irreparable harm in light of the difficulties inherent in attempting to obtain a new policy," the suit says.

In addition the complaint asks the court to require the district to pay the premiums immediately and reimburse Whealon for premiums he has paid so far.

The case will be heard by a Butte judge; Anaconda District Judge Ray Dayton cited a conflict of interest because he was a school board member when Whealon was superintendent.