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Caterpillar Retirees Lose Court Case

Federal appeals court has ruled against Caterpillar Inc. retirees who contend the company reneged on providing them free health care for life.

NASHVILLE, Tenn. (AP) -- A federal appeals court has ruled against Caterpillar Inc. retirees who contend the company reneged on providing them free health care for life.

The retirees' class-action lawsuit filed in Nashville seeks the coverage for workers who retired between January 1992 and March 1998, when Peoria, Ill.-based Caterpillar and the United Auto Workers were locked in a contract stalemate.

The suit argues those workers are entitled to terms of a previous contract that provided free lifetime coverage for all eligible retirees and their dependents. Caterpillar argues those workers are covered under a contract implemented by the company in 1992 scaling back health care benefits.

The 6th U.S. Circuit Court of Appeals ruled on Tuesday, sending the case back to District Court.

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