Santa Ana : Ex-Officer’s Suit Against City Revived by Court

A federal appellate court has revived a lawsuit by a former city police officer who alleged that top city officials violated his rights when he was denied disability benefits without a hearing.

The 9th Circuit Court of Appeals reinstated Michael Ostlund’s $15-million claim against the city, City Atty. Edward J. Cooper and former City Manager Robert C. Bobb.

The court’s opinion found that state law affords a police officer the right to a hearing on a claim to retirement benefits based on work-related disability.

Ostlund’s lawyer, Seth J. Kelsey, applauded the decision and castigated the city’s “Neanderthal position.”

“I know of no other city that has so stubbornly refused to update its administrative procedures in the face of overwhelming case law supporting the right to a hearing,” Kelsey said.

Ostlund, who was involved in two shootings, was fired in 1983 after police decided that he was overly aggressive and lacked proper judgment under pressure, Kelsey said.

At the time, the City Council had authorized the city manager to decide disability claims. Bobb denied Ostlund’s claim without a hearing.

Since then, a state judge has ruled that Ostlund deserves a hearing on his claim. The hearing has not yet been scheduled.

The city has also changed its procedures to allow appeals to the council on disability claims, a change caused in part by the Ostlund case, Cooper said.

The federal lawsuit seeks substantial damages for the city’s refusal to provide a hearing, Kelsey said. To date, Ostlund has not received any disability retirement benefits, he added.