Class Act Group Announces U.S. Federal Court of Appeals Ruling Against Military Retirees Lifetime, Government Financed Medical Care.

Business Editors/Government Writers

FORT WALTON BEACH, Fla.--(BUSINESS WIRE)--Nov. 20, 2002

Court Concludes Government Promise to Military Retirees Not Valid

In a highly anticipated decision, one that could have far-reaching financial implications for millions of U.S. military retirees, the U.S. Court of Appeals for the Federal Circuit, Washington, D.C. ruled today that Military Retirees have no legal standing to recover promised and earned medical care coverage. According to the Federal Court, the U.S. government was authorized to break the promise and is not liable to provide lifetime, free medical care to those servicemen and women who served their country honorably for 20+ years.

"This battle is not over. We were all aware that whichever way the Court of Appeals ruled, that the case would be appealed to the U.S. Supreme Court. Much to my surprise, it is G.I. Joe that is appealing" says Colonel George "Bud" Day, USAF, Ret, the attorney representing some 22,000 clients. "We will employ every offensive weapon we have at our disposal for presentation of this case to the U.S. Supreme Court". Rest will come when every possible argument is exhausted. Our fight will be geared to convince the U.S. Supreme Court that military retirees are legally guaranteed to receive the benefits they were promised by the government when they signed up to devote their lives to the service of their country. We should never have been forced to wage this fight, but we are in it and four Federal Appeals Court Judges in their support of our cause gives strong hope." Col Day believes the Court's decision is misguided, weak and our government cannot be allowed to trample her warriors in favor of budgetary waste and continued political pork abuse. One of the most highly decorated military officers since General Douglas MacArthur, Colonel Day, MOH, former POW, took on this case more than six years ago. "This has been the crusade of my life and I won't rest until the last round is fired." "I hope every military retiree and veteran take this Appeals Court set-back personally and demand your Congressional Representative and Senators take legislative action in conjunction with our legal fight to right this wrong" says Col Day.

Officials at the Department of Defense breached their contract with military retirees over the age of 65 - mostly World War II and Korea War career veterans - to receive medical care in military hospitals. This forced the retired members to buy Medicare B and other supplemental insurance costing @$3,600.00 per year, to have the coverage which the U.S. previously provided for decades. The payment of about $300.00 per month is cost prohibitive for many elderly G.I.s.

"After 20 years of care in military hospitals, my wife and I were kicked out and forced to rely on Medicare," says Robert "Bob" Reinlie, one of the Plaintiffs's. "This is not what I was promised when I pledged to serve my country for 20 years. I'm astonished the U.S. Court of Appeals has supported this injustice."

Class Act Group's attorney has been directed to prepare a Petition for Review to the U.S. Supreme Court. Retired military members can contact the Class Act Group at 32 Beal Parkway, SW, Fort Walton Beach, Florida 32548-5391. Eligible members are limited to: military retirees who voluntarily retired with credit for 20 or more years' active duty, entered into active duty before December 7, 1956, are aged 65 or over and currently paying or have previously paid for Medicare Part B. The group's phone number is 1-800-972-6275, Fax [phone], and their email address is [e-mail]. For more information, log onto http://www.classact-lawsuit.com .

Additional background:

Lawsuit History:

July 1996: Plaintiffs file suit for monetary damages in Federal District Court in Pensacola, FL., charging age discrimination, 5th amendment taking of property and breach of contract.

June 1997: District Court dismisses plaintiffs' claim of age discrimination, but agrees to hear further argument on their 5th amendment taking of property and breach-of-contract theories.

August 1998: District Court denies plaintiffs' entire petition.

December 1998: Plaintiffs appeal to US Circuit Court of Appeals for the Federal Circuit, Washington, D.C.

March 2000: Federal court hears oral arguments of the parties.

February 2001: Three-judge panel of the Federal Circuit Court of Appeals, Washington, DC overturns the district court decision. Finds that military retirees who entered service before June 7, 1956, had been promised free lifetime health care in return for a career of military service and were due compensation of up to $10,000 each for the government's failure to live up to that promise.

June 2001: Federal Circuit Court of Appeals, Washington, DC agrees to a rehearing before the full (en banc) court.

March 6, 2002: Federal Circuit Court of Appeals, Washington, DC hears oral argument in the case.

November 18, 2002: Current court ruling affirming the US Government position that military retirees have no legal standing to receive the medical care promised. (View complete ruling at www.fedcir.gov, case 99-1402

The Federal Circuit Court of Appeals, Washington, D.C. ordered plaintiffs L/Cols. "Sam" Schism and Robert Reinlie be re-heard in oral argument on their Feb 2001 victory in the FedCt of Appeals, March 6, 2002 at 2:00 PM, re: Military Retiree Lifetime Medical Care.

In the Appeal from the Pensacola Federal District court, the Washington, D.C. Federal District Court in Feb 2001 reversed and gave the plaintiffs Summary Judgment and ordered the case back to trial court to award damages. The US government requested a rehearing. On March 6, 2002, Attorney Col. Geo. "Bud" Day argued the WWII/Korean Retiree case to the 12 member (en banc) court, and the United States focused on why the U.S. should be able to break their promise of free lifetime medical care to the WWII/Korean retired veterans.

Col. Day originally filed a Class Action initiative, which could impact as many as 1,500,000 WWII and Korea War retired veterans, but was made moot when the Pensacola Federal District awarded summary judgement to the government. A renewed motion for Class Action status will be delayed pending Supreme Court action.

Col. Day is more than a little suprised that the 11-member court has found in favor of the government. He notes that the U.S. admitted the government made the promise of free lifetime medical care for military retirees. It appears the laws concerning suits against the government having recently undergone a huge change in favor of the plaintiffs has had little effect. The U.S. states the claims of the WWII/Korea retired veteran group could total as much as $15 billion dollars. Day further states the backing and efforts of the many members of the Class Act Group as being largely responsible for the passage of TRICARE for Life legislation. This legislation provides nearly free hospital and pharmacy care and was enacted in December 2000 because members persuaded both Representative Ronnie Shows and Senator Tim Johnson to sponsor Keep The Promise Bill in the House and Senate. L/Col. Reinlie organized the Class Act Group initiative in Fort Walton Beach, FL which has obtained contributions and membership of several thousand members for the proposed Class Action, after the basic case is resolved in favor of the two original plaintiff's and appeals completed.

Class Act can be contacted on the web at www.classact-lawsuit.com via email at [e-mail] toll free 1-800-972-6275 or Class Act Group, 32 Beal Parkway, SW., Ft Walton Beach, FL 32548-5391.