Michigan Supreme Court reverses lower court, overturns decision in favor of police chief against employer
Kenneth Costella sued the Taylor Police & Fire Retirement System and City of Taylor, aruging that it was computing his retirement improperly. The dispute focused on whether a $48,000,00 severance payment should influence the calculation. The Court of Appeals majority had concluded that "Costella justifiably relied on the representations of various officials" that the sum would be included in his retirement package computation.
This week the Supreme Court overturned the Court of Appeals and reinstated summary disposition for the employer. It held, in a one paragraph opinion, that the defendant's final decision refusing to include the disputed amount in Costella's retirement calculation was "not contrary to law, was not arbitrary, capricious, or a clear abuse of discretion." In other words, the City's decision wasn't outrageously wrong, the employee loses.