Two state employees have prevailed in their fight to extend health benefits to their same-sex partners and sons. Yesterday, the state dropped its appeal of an earlier court decision that said the state can't legally deny benefits to the employees' families.

The state's unexpected decision - the case was scheduled to go before the New Hampshire Supreme Court later this week - stemmed from the recent passage of a bill creating civil unions for same-sex couples in the House and Senate, said Senior Assistant Attorney General Michael Brown. Gov. John Lynch has said he intends to sign that bill into law.

"In light of the civil unions legislation . . . it would seem that the underlying issues would be made moot," Brown said. The state's argument for an appeal, Brown said, was rooted in the idea that "these are policy matters" and that lawmakers, not the court, should decide whether to extend benefits to the partners of state employees. When lawmakers paved the way for civil unions, he added, that legal argument dissolved.

In some ways, the court dispute reflects just how quickly the fight for legal rights for same-sex couples has evolved in New Hampshire. When Merrimack County Superior Court Judge Kathleen McGuire ruled in favor of Patricia Bedford and Anne Breen last year, the decision was heralded as a major step forward for state employees in same-sex relationships. Just one year later - with Democrats newly in control of the House and Senate - New Hampshire is poised to become the fourth state to adopt civil unions.

"I'm happy and ecstatic," said Breen, who lives in Salisbury and will celebrate her 30th anniversary with partner Kathleen Doyle in January. "I don't know if this lawsuit helped promote (civil unions) in any way, but it certainly brought it to the bargaining table," she said, referring to contract negotiations for state employees.

Civil unions will allow same-sex couples to enter into unions with the same "rights, responsibilities and obligations" as heterosexual marriage. Because the federal government doesn't recognize civil unions, the federal benefits afforded heterosexual married couples won't extend to same-sex couples.

Yesterday's announcement also comes as the State Employees' Association is pushing for the next two-year contract for state employees to include benefits for same-sex couples. That contract could, for the first time, let state employees in same-sex relationships extend their health coverage to family members.

"We believe the domestic partnership will be put into effect July 1," said Diana Lacey, chairwoman of the SEA bargaining team, which represents more than 9,000 state workers. Although the SEA unsuccessfully pushed for such benefits in the past, this year "we've had a great dialogue with the governor's representatives on this," Lacey said. If the SEA and the state agree on a contract, it will likely include legal rights for same-sex couples, she said.

"There's been momentum growing in this area," said SEA President Gary Smith. "More and more people are realizing that it's the right thing to do."

Breen and Bedford's case began in 2002 at the state Human Rights Commission.

Breen, the director of campus security at New Hampshire Technical Institute in Concord, wasn't allowed to extend her health coverage to Doyle. Initially, Breen was also barred from placing their son, Matthew Doyle, on her insurance. Breen had to become a legal guardian of Matthew - who is Doyle's biological son - before placing him on her insurance.

Bereavement and sick time were another point of contention. Breen and Bedford were forced to use vacation time to care for their sick partners. Before Breen became Matthew's guardian, she used vacation days to care for him; as an infant, he spent several weeks in the hospital. Employees in heterosexual marriages, however, can use sick time to care for their families.

Bedford, meanwhile, has a 4-year-old son with Vivian Knezevich, her partner of more than 15 years. After Bedford gave birth to their son, the couple decided that Knezevich would stay home while Bedford returned to work. Knezevich, who previously worked for a school district, lost her health benefits.

Because the state prohibited Bedford from adding Knezevich to her plan, Knezevich took a part-time night job at L.L. Bean to receive benefits. "We hardly ever see each other," said Bedford, who has worked for the New Hampshire Community Technical College System for more than a decade and currently oversees programs for low-income students and those with disabilities.

After the state denied their requests to extend health benefits to their families, Breen and Bedford lodged complaints with the Human Rights Commission.

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