Aliff v. BP America, Inc.

26 F.3d 486, 1994 WL 244963
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 8, 1994
DocketNo. 93-2050
StatusPublished
Cited by6 cases

This text of 26 F.3d 486 (Aliff v. BP America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aliff v. BP America, Inc., 26 F.3d 486, 1994 WL 244963 (4th Cir. 1994).

Opinion

OPINION

PER CURIAM:

Forty-three former employees of BP America, Inc., (BP) appeal the order granting summary judgment to BP in the employees’ action to recover severance benefits under a plan established by BP. We affirm.

I

In May, 1990, BP established an Involuntary Separation Plan (ISP) to provide severance benefits for employees who might be displaced as a result of an anticipated sale of a BP subsidiary, Old Ben Coal Company (Old Ben). On July 20,1990, Old Ben was sold to Zeigler Coal Holding Company. The contract of sale called for Zeigler to maintain employee benefit plans that would be “substantially comparable in the aggregate” to BP’s plans then in force. Three days later, BP’s Director of Benefits mailed copies of the ISP to the affected employees.

To be eligible for severance benefits under the ISP, an Old Ben employee had to be [488]*488“displaced.” A “displaced employee” was defined as one to whom BP or Zeigler offered a job that was “not at an equivalent level of compensation to your job with [BP]” and the employee either (1) did not accept the job or (2) accepted the job with Zeigler but resigned within thirty days. The plan informed each employee that “[y]ou may request an advance determination of your eligibility under this provision through your Human Resources representative in Cleveland, Ohio.” The plan provided that

“equivalent level of compensation” shall be determined by the BP Plan Administrator or his designee, taking into account the estimated aggregate value of base pay, incentive compensation, savings plan, pension, medical, dental, life insurance, short term disability, and long term disability.

In the letter accompanying the copy of the plan, BP’s Director of Benefits informed the employees that the “equivalent level of total compensation” question had been determined:

Based upon a review of the applicable BP America and Zeigler employee benefits programs, it has been determined that, in the aggregate, they are substantially equivalent. Accordingly, this last provision would potentially apply to employees transferring to Zeigler only if their base salary ... is reduced from the level in effect at the close.

All the plaintiff-employees accepted jobs with Zeigler at the same base salaries.

Many of the employees promptly complained that the Zeigler benefits were lower in several areas. On August 8, 1991, they asked for information on how the equivalency determination had been made. They also asked for additional time to make resignation decisions in order to toll the running of the thirty-day period.

On August 20, in response to the inquiries, BP Benefits Director MeAuliffe, who had been designated by the plan administrator to make the equivalency determination, notified the employees that the comparison was made on an aggregate rather than an individual basis. The comparison was based on the sales agreement, the two companies’ benefits programs, and a report from an actuary. Any individual review would be limited to whether each employee had been employed by Zeigler at “an equivalent base salary.” Requests for copies of the actuary report were denied.

By its terms, the Plan expired on July 20, 1991. No employee had availed himself of the appeal procedure set forth in the Plan.

This action was filed on April 29,1992, and contained a variety of state and federal claims. In awarding summary judgment to the defendants, the district court ruled that the state law claims were preempted by the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq. With regard to the primary ERISA claims, the court found that the ISP did not mandate an employee-by-employee equivalency analysis and that “substantially comparable” standard used by the actuary was in accordance with the Plan standard of “equivalent level.” The court also determined that the July 23 and August 20 letters served as adequate “advance determinations” of benefits. The court also posited an alternative basis for denying the claim — none of the plaintiffs had resigned before the expiration of the thirty-day period. Finally, the district court ruled that ERISA did not require BP to disclose the requested actuarial report.

All forty-three plaintiffs appeal.

II

The employees’ common law claims allege that BP, in an effort to induce the employees to stay with Old Ben and thereby maintain its value as a going concern, misled the employees to their detriment. But for these misrepresentations, the employees assert, they might have relocated to other jobs with better pay and benefits but for the assurance of either a comparable job with Zeigler or a good severance benefit package from BP.

ERISA preempts all state laws that “relate to any employee benefit plan.” 29 U.S.C. § 1144(a). The preemptive scope is broad, and any state law that has a “connection with or reference” to a benefit plan is preempted. Shaw v. Delta Air Lines, 463 [489]*489U.S. 85, 96-97, 103 S.Ct. 2890, 2899-2900, 77 L.Ed.2d 490 (1983). The district court concluded that “all state based claims involve the administrator’s denial of severance benefits.” Aliff v. BP America, Inc., 826 F.Supp. 178, 185 (S.D.W.Va.1993). We affirm the summary judgment with regard to the state law claims (claims 1-5) for the reasons stated by the district court in its memorandum opinion. Id. at 184-85.

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26 F.3d 486, 1994 WL 244963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aliff-v-bp-america-inc-ca4-1994.