M&G Polymers USA v. Tackett

M&G Polymers (defendant) and its union entered a collective bargaining agreement (CBA) and companion Pension, Insurance, and Service Award Agreement (P&I) stating retirees 'will receive full Company contribution towards the cost of' healthcare benefits, but when the agreements were renewed, M&G began requiring retiree contributions instead. Retirees led by Hobert Tackett (plaintiffs) sued, claiming M&G had promised lifetime, contribution-free healthcare; the district court dismissed for failure to state a claim, but the court of appeals reversed, relying on the Sixth Circuit's Yard-Man precedent to read 'will receive' as showing intent to vest lifetime benefits, and on remand the district court permanently enjoined M&G from requiring contributions. The court of appeals affirmed, and the Supreme Court granted certiorari.