Justia ERISA Opinion Summaries

Plaintiffs sued Metro to recover contributions owed pursuant to the Employer Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1145. Metro challenged the damages award, arguing that the method set forth in the collective bargaining agreement resulted in an impermissibly speculative damages award. The court disagreed and held that the parties were free to agree to an alternative method of calculating damages without offending the requirement that damages be proven with "reasonable certainty." Accordingly, the court affirmed the judgment. View "Cement and Concrete Workers District Council Welfare Fund v. Metro Foundation Contractors" on Justia Law

Decedent, father of plaintiffs, died without naming a beneficiary of his Unum life insurance. Plaintiffs sued Unum, asserting a breach of the policy and an Employee Retirement Income Security Act, 29 U.S.C. 1002 et seq., violation. The district court concluded that they lacked standing and dismissed the suit. The court concluded that the estate's decision not to appeal precluded the children from having a reasonable or colorable claim to benefits. Because plaintiffs could not become entitled to benefits, the court held that the district court properly dismissed the case. View "A.J., et al v. UNUM, et al" on Justia Law

Plaintiff filed suit under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1001 et seq., the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 et seq., and state law, alleging that defendant had retaliated against him after he raised complaints protected by those statutes. The district court granted summary judgment to defendant on the federal law claims and dismissed the state law claims without prejudice. The court concluded that plaintiff failed to make a prima facie case of retaliation under ERISA. Likewise, plaintiff failed to make a prima facie case of retaliation under the FLSA. At any rate, plaintiff failed to show a causal connection between his complaint about holiday meal time and his termination six months later. Accordingly, the court affirmed the judgment. View "Shrable v. Eaton Corp." on Justia Law

A collective bargaining agreement governs the relationship between Acument and its retired employees. Prior to 2008, the company paid healthcare and life-insurance benefits to qualified retirees. When Acument ended these benefits in 2008, a class of 64 retirees claimed that the company had violated the CBA in violation of the Employee Retirement Income Security Act and the Labor Management Relations Act. The district court granted Acument summary judgment. The Sixth Circuit affirmed, characterizing the issue as “a matter of contract.” The relevant language states that the company “reserves the right to amend, modify, suspend, or terminate the Plan,” consisting of: retiree medical coverage; retirement income; disability income; and life insurance. View "Witmer v. Acument Global Tech., Inc." on Justia Law

In a 2009 opinion, the Sixth Circuit held that, in a 1998 collective bargaining agreement, CNH agreed to provide health-care benefits to retirees and their spouses for life, but rejected the suggestion that the scope of this commitment in the context of healthcare benefits, as opposed to pension benefits, meant that CNH could make no changes to the healthcare benefits provided to retirees. The court remanded for a determination of reasonableness with respect to CNH’s proposed changes to its retiree healthcare benefits, under which retirees, previously able to choose any doctor without suffering a financial penalty, would be put into a managed-care plan. The court listed three considerations: Does the modified plan provide benefits “reasonably commensurate” with the old plan? Are the proposed changes “reasonable in light of changes in health care”? And are the benefits “roughly consistent with the kinds of benefits provided to current employees”? On remand, the district court granted CNH summary judgment without reaching the reasonableness question or creating a factual record from which the determination could be made on appeal. The Sixth Circuit again remanded.View "Reese v. CNH America LLC" on Justia Law

Plaintiff, a former NFL player, filed suit seeking more generous disability benefits under the Bert Bell/Pete Rozelle NFL Player Retirement Plan. The district court granted summary judgment in favor of the Plan, affirming its benefits determinations that plaintiff was only eligible for "Inactive" player disability benefits instead of the more generous "Football Degenerative" disability benefits he sought. The court held that the district court did not err by applying abuse of discretion review to the Retirement Board's 2011 benefits determination; the district court did not err in using abuse of discretion instead of a heightened standard of review when considering the arbitrator's decision; and the district court's decision affirming the Retirement Board's 2006 and 2011 benefits determination on the merits under the abuse of discretion standard was correct. Accordingly, the court affirmed the district court's grant of summary judgment in favor of the Plan. View "Atkins v. Bert Bell/Pete Rozelle NFL, et al" on Justia Law

Defendant Goding was a beneficiary of an Employee Retirement Insurance Security Act (ERISA), 29 U.S.C. 1001 et seq., Plan administered by Drury. Goding sustained injuries in a slip and fall accident and received benefits from the Drury-administered Plan, as well as compensation through the settlement of a civil suit related to those injuries. Pursuant to a subrogation provision in the ERISA Plan, Drury attempted to secure reimbursement from Goding for the benefits it paid but was unable to do so after Goding declared bankruptcy. Drury then attempted to obtain that reimbursement from the firm that represented Goding. The court affirmed the district court's finding that Drury could not obtain such reimbursement because the firm had not agreed to the Plan's subrogation provision and consequently was not contractually bound by it; Drury could not maintain a suit against the firm in equity and could not bring a state cause of action for conversion against the firm; and the firm should be awarded attorneys' fees for successful defense of a subsequent motion. View "Treasurer, Trustees of Drury Ind. v. Goding, et al." on Justia Law

Plaintiff-Appellant William Foster sued his former employer, Defendant-Appellee PPG Industries, Inc. (PPG), and Defendant-Appellee the PPG Industries Employee Savings Plan (collectively, Defendants) under the Employee Retirement Income Security Act (ERISA) to recover Plan benefits allegedly due him after Foster’s ex-wife fraudulently withdrew Foster’s entire Plan account balance. The district court upheld the decision of the Plan Administrator, who had determined that the Plan was not liable to reimburse Foster for the fraudulently withdrawn benefits. Foster appealed. Finding no merit to Foster's argument, the Tenth Circuit affirmed the district court. View "Foster v. PPG Industries, Inc., et al" on Justia Law

Former Fifth Third employees participated in a defined contribution retirement plan with Fifth Third as trustee. Participants make voluntary contributions and direct the Plan to purchase investments for their individual accounts from preselected options. The options included Fifth Third Stock, two collective funds, or 17 mutual funds. Fifth Third makes matching contributions for eligible participants that are initially invested in the Fifth Third Stock Fund but may be moved later to other investment options. Significant Plan assets were invested in Fifth Third Stock. Plan fiduciaries incorporated by reference Fifth Third’s SEC filings into the Summary Plan Description. Plaintiffs allege that Fifth Third switched from being a conservative lender to a subprime lender, its loan portfolio became increasingly at-risk, and it either failed to disclose or provided misleading disclosures. The price of the stock declined 74 percent. The district court dismissed a complaint under the Employee Retirement Income Security Act, 29 U.S.C. 1001, based on a presumption that the decision to remain invested in employer securities was reasonable. The Sixth Circuit reversed, holding that the complaint plausibly alleged a claim of breach of fiduciary duty and causal connection regarding failure to divest the Plan of Fifth Third Stock and remove that stock as an investment option. View "Dudenhoefer v. Fifth Third Bancorp" on Justia Law

In 2009, George, a vice president of JA, discovered that money withheld from his pay was not being deposited into his retirement account and health savings account. He complained to JA’s accountants and executives, including Burk. He contacted the Department of Labor but declined to file a complaint. He raised the issue with board members, then received checks for $2,600 for the missed deposits plus interest. His employment agreement ran until June 30, 2010, but he had discussed, with Burk and others, retiring in April 2010. On January 4, 2010, Burk told George not to return to work. Burk later discovered that George had drawn down the account containing his deferred compensation. J A concedes that George was entitled to withdraw the funds, but it did not rescind his discharge. George claimed violation of the Employee Retirement Income Security Act, 29 U.S.C. 1104(a) and retaliation for reporting that violation. The district court granted JA summary judgment. The Seventh Circuit vacated. An employee’s grievance is within ERISA’s scope of protection against retaliation whether or not the employer solicited information. George notified JA of the potential breach of its fiduciary duties and asked what would be done. Those conversations involved an “inquiry.” View "George v. Jr. Achievement of Cent. IN, Inc." on Justia Law