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AAG: Court orders $118 million judgment in long-running Fowler teacher-interest case; state appeals

State Committee on Pension Policy Executive Committee · July 21, 2026
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Summary

Assistant Attorney General Kate Adams told the executive committee that the court ruled on June 25 in the Fowler teacher-interest case, ordering $118,000,000 payment with post‑judgment interest at 8.65%; the state has appealed and sought a stay while a separate Dawson challenge to House Bill 20 34 proceeds in federal court.

Assistant Attorney General Kate Adams updated the State Committee on Pension Policy executive committee on two active legal matters affecting the pension systems. "On June 25, the court issued a ruling in favor of the plaintiffs, and ordered the state to immediately pay the calculated amount, which is a $118,000,000," Adams told the panel and added that "post judgment interest applies at 8.65% annually." She said the state has appealed and filed a motion to stay payment while the appeal proceeds.

Adams described the second case, identified in the briefing as the Dawson matter, as a federal challenge related to last year’s House Bill 20 34. The amended complaint dropped the state constitutional claims and preserves a federal impairment‑of‑contract claim; the pleading was changed to add the treasurer and drop the Department of Retirement Systems as a defendant while keeping the department director on the complaint. She said a discovery plan is due at the end of the month and the state plans to file a motion seeking dismissal. "I'll update the committee in September," Adams said when asked about timing.

Committee members asked staff to keep them notified if the litigation produces a cost to the systems. The committee did not take any formal action on the update during the meeting.