Bellas v. Cbs, Inc.

201 F.R.D. 411, 25 Employee Benefits Cas. (BNA) 2594, 2000 U.S. Dist. LEXIS 21227, 2000 WL 33363889
CourtDistrict Court, W.D. Pennsylvania
DecidedOctober 20, 2000
DocketCiv.A. No. 98-1455
StatusPublished
Cited by2 cases

This text of 201 F.R.D. 411 (Bellas v. Cbs, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bellas v. Cbs, Inc., 201 F.R.D. 411, 25 Employee Benefits Cas. (BNA) 2594, 2000 U.S. Dist. LEXIS 21227, 2000 WL 33363889 (W.D. Pa. 2000).

Opinion

OPINION and ORDER OF COURT

AMBROSE, District Judge.

Pending before this Court is a Motion of Plaintiff for Class Certification pursuant to Rule 23 of the Federal Rules of Civil Procedure. For the reasons set forth below, Plaintiffs Motion for Class Certification will be granted in part and denied in part. With regard to proposed sub-class (i), the Motion will be granted. With regal’d to proposed sub-class (ii), the Motion will be denied without prejudice and Plaintiff permitted to file within twenty (20) days of the date of this Opinion and Order, an Amended Complaint which either: (a) offers the names and qualifications of proposed named plaintiffs to represent sub-class (ii) or (b) incorporates a revised class description eliminating subclass (ii) in its entirety, each alternative being explained more fully below and in the accompanying Order.

1. INTRODUCTION

A. Factual History1

Plaintiff Harry Bellas initiated this action on August 31, 1998, alleging that Westinghouse Electric Corporation (“Westinghouse”), the predecessor-by-name-change to Defendant CBS, Inc. (“CBS”), impermissibly amended the Westinghouse Pension Plan (“the Plan”) by restricting admission to and then eliminating entirely the “Special Retirement Pension” program applicable when an employee who met pre-determined age and service requirements was terminated through a “Permanent Job Separation” (“PJS”).2

Prior to January 1, 1994 (“the pre-1994 version of the Plan”), the term “Permanent Job Separation” was defined in the Plan as meaning termination of an employee “through no fault of his own, for lack of work, for reasons associated with the business for whom [the employer] determines there is no reasonable expectation of recall.” Bellas v. CBS, Inc., 221 F.3d 517, 521 (3d Cir.2000). An amendment to the Plan, adopted by CBS on January 1, 1994 (“the Amendment”), altered participants’ entitlement to a Special Retirement Pension in two respects: (1) the Amendment made it harder to qualify for a Special Retirement Pension after January 1, 1997, by re-defining Permanent Job Separation as applicable only in those situations in which employment termination was due to job movement, product line relocation, or location close-down and (2) the Amendment eliminated the Special Retirement Pension entirely for terminations on or after September 1,1998.

Plaintiff was employed by CBS and participated in the Plan at all relevant times, including at the time the Amendment was [414]*414adopted. Plaintiff was not notified of the Amendment until late in 1994 or until distribution of the January 1, 1995, Summary Plan Description. As of January 1, 1997, the date on which the new definition of the phrase “Permanent Job Separation” went into effect, Plaintiff was over age 50 and had more than thirty years of Eligibility Service at CBS.

As part of a coordinated layoff directed primarily at employees of senior age, Plaintiffs employment was terminated by CBS on December 31, 1997, through no fault of his own, through lack of work, for reasons associated with CBS’ business and with no reasonable expectation of recall, i.e., under conditions which met the prior definition of PJS and would have qualified Plaintiff for a Special Retirement Pension under the pre-1994 version of the Plan. CBS did not inform Plaintiff of his eligibility for a Special Retirement Pension under the pre-1994 version of the Plan, thereby preventing him from making a claim under that version of the Plan.

B. Procedural History

Plaintiff filed this suit in the form of a class action. Compl. 111122-29. Count One of the Complaint alleged that the Amendment had the effect of eliminating or reducing an early retirement benefit or an early retirement-type subsidy in contravention of Section 204(g) of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1054(g).3 Count Two alleged that by adopting and implementing the Amendment, CBS violated the fiduciary duties for the Plan administrator set out in 29 U.S.C. § 1104(a), that is, to act solely in the interest of Plan participants and beneficiaries, to administer the Plan in accordance with both Plan governing documents and instruments and ERISA regulations, and to exercise care, prudence, and diligence in the performance of its responsibilities.4 Plaintiff sought relief in the form of a declaratory judgment by this Court that implementation of the Amendment violated 29 U.S.C. § 1054(g) and 29 U.S.C. § 1104(a); payment by Defendants of Special Retirement Pensions to all members of the proposed class who satisfied or will satisfy in the future the pre-Amendment conditions for such a pension; costs, expenses and reasonable attorneys’ fees; and other relief as the Court considered just. Compl., Prayer for Relief, at 8-9.

Defendants filed a Motion to Dismiss the Complaint, which I denied on June 29, 1999. See Bellas v. CBS, Inc., 73 F.Supp.2d 493 (W.D.Pa.1999). At the same time, Plaintiff moved for partial summary judgment on Count One of his Complaint, i.e., the question of whether the 1994 Plan Amendment violated § 1054(g). See Bellas v. CBS, Inc., 73 F.Supp.2d 500 (W.D.Pa.1999). The ruling of [415]*415this Court was that the Permanent Job Separation benefit is “a subsidy that continues after retirement” and “a retirement-type subsidy.” Id. at 508-509.

On July 13, 1999, Defendants filed a Motion to Certify my Order granting partial summary judgment for an interlocutory appeal to the Third Circuit pursuant to 28 U.S.C. § 1292(b), and that Motion was granted on July 29, 1999. The Court of Appeals, Greenberg, J., affirmed the grant of partial summary judgment, holding, as a matter of first impression, that

the PJS Benefits offered under the Westinghouse Plan are both an early retirement benefit and a retirement-type subsidy protected under section 204(g), to the extent that they include the lifetime provision of a normal retirement benefit commencing after a covered job loss. To the extent the Westinghouse Plan provided PJS Benefits that did not continue beyond normal retirement age, those benefits are not protected by section 204(g).

Bellas v. CBS, Inc., 221 F.3d 517, 540 (3d Cir.2000).5

On January 8, 1999, Plaintiff Bellas had moved for class certification pursuant to Rule 23

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201 F.R.D. 411, 25 Employee Benefits Cas. (BNA) 2594, 2000 U.S. Dist. LEXIS 21227, 2000 WL 33363889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellas-v-cbs-inc-pawd-2000.