Appeals court rules against Gadsden Firefighters

A federal appeals court has upheld the city of Gadsden’s decision to increase how much city employees must contribute toward their retirement.

The United States Circuit Court for the Eleventh Circuit  ruled Tuesday that the city had not violated the “commerce clause” of the U.S. Constitution, nor the Alabama constitution, which prohibit governments from passing legislation that negatively impacts existing private and public contracts.

The lawsuit, brought by seven Gadsden firefighters on behalf of a class of most of city’s firefighters, was filed after the City Council passed a resolution in 2011 increasing the amount contributed by employees toward their retirement by 2.5 percent over two years, while reducing the city’s contribution.

After the suit was filed in 2011, the United States District Court for the Northern District of Alabama in 2013  ruled that the plaintiffs had failed to show that Gadsden had impaired any contracts to their detriment, and dismissed the case. It then was appealed to the 11th Circuit.

Attorney Ed Howard, who represented the city, said the appeals court in its ruling noted the absence of any contract between the firefighter-employees and the city, and pointed to laws governing the retirement system. It found there were no statutes showing that such increases could not occur.