Teacher May Pursue Denial of COBRA Claim; Gross Misconduct Defense Requires Evidence

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Teacher May Pursue Denial of COBRA Claim; Gross Misconduct Defense Requires Evidence

Dr. Basant Chatterjee was fired from University City High School in Philadelphia after teaching mathematics there for twenty years. He sued the school district, alleging discrimination based on his Asian race and for the unlawful denial of the opportunity to elect COBRA continuation coverage. The school district defended the COBRA claim by asserting that Chatterjee was terminated because of "gross misconduct" and asked the court to dismiss the allegation. Under COBRA, an employer is obligated to notify qualified beneficiaries of group health plans of their right to continued health insurance coverage when employment is terminated. But when an employee is fired as a result of gross misconduct, COBRA coverage need not be offered.

The district argued that the circumstances of Dr. Chatterjee's dismissal relieved it of any obligation to provide him with COBRA coverage. On the other hand, Dr. Chatterjee asserted that he had been subjected to false investigations and charges in connection with his professional conduct, which culminated in his termination. He claims to have been wrongfully accused of misappropriating funds from extra-curricular programs, writing proposals for his own personal gain, making "several thousands of dollars" worth of unauthorized expenditures, and changing the locks of storage areas without authorization.

Because COBRA law does not define "gross misconduct," the judge looked to the Pennsylvania Supreme Court's definition for guidance: "The wanton or willful disregard of the employer's interest, a deliberate violation of the employer's rules, a disregard of standards of behavior which the employer has a right to expect of an employee, or negligence indicating an intentional disregard of the employer's interest of the employee's duties and obligations to the employer." The court said it could not conclude that Dr. Chatterjee was guilty of gross misconduct as a matter of law without further evidence and so denied the school district's request for dismissal of the charge.

(Chatterjee v. School District of Philadelphia, U.S. District Court, ED Pennsylvania, Dkt. No. 99-4122, October 2, 2001)



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