Box v. Goodyear Tire & Rubber Co.

51 F. Supp. 3d 1147, 2014 U.S. Dist. LEXIS 135131, 2014 WL 4793428
CourtDistrict Court, N.D. Alabama
DecidedSeptember 25, 2014
DocketCase No. 4:11-CV-02829-MHH
StatusPublished
Cited by3 cases

This text of 51 F. Supp. 3d 1147 (Box v. Goodyear Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Box v. Goodyear Tire & Rubber Co., 51 F. Supp. 3d 1147, 2014 U.S. Dist. LEXIS 135131, 2014 WL 4793428 (N.D. Ala. 2014).

Opinion

MEMORANDUM OPINION

MADELINE HUGHES HAIKALA, District Judge.

This is an ERISA action. Plaintiff Kevin Box, individually and as the representative for the Estate of Kenneth Box, and plaintiff Kgtrina Evatt seek pension benefits under defendant Goodyear Tire & Rubber Company’s 1950 Pension Plan. Plaintiffs are the children of Kenneth Box. Mr. Box was an employee of Goodyear from September 5, 1975 until August 5, 2003, and he participated in the company’s pension plan. On August 5, 2003, Mr. Box was shot and killed by his wife, Barbara A. Box.

At the time of his death, Mr. Box was an active Goodyear employee and was not receiving benefits under the pension plan. The Goodyear pension plan is a defined benefit plan. The plan provides a qualified pre-retirement survivor annuity (“QPSA”) benefit for the surviving spouse of a vested plan participant who dies before he is eligible to receive his pension benefit.

Plaintiffs argue that the pre-retirement spousal benefit should be paid either to the estate of Kenneth Box or to Mr. Box’s heirs because Mrs. Box is not eligible for the benefit. Goodyear agrees that Mrs. Box is not eligible for the benefit but argues that because the plan provides no contingent beneficiary for the QPSA, the pre-retirement spousal benefit is not pay[1149]*1149able to any person, not even Mr. Box’s estate or his heirs. This Court must determine whether Goodyear must pay the pre-retirement spousal benefit under the terms of the plan.

I. ERISA STANDARD OF REVIEW

The Eleventh Circuit has formulated a multi-step framework for courts reviewing an ERISA plan administrator’s benefits decisions:

(1) Apply the de novo standard to determine whether the claim administrator’s benefits-denial decision is “wrong” (i.e., the court disagrees with the administrator’s decision); if it is not, then end the inquiry and affirm the decision.
(2) If the administrator’s decision in fact is “de novo wrong,” then determine whether he was vested with discretion in reviewing claims; if not, end judicial inquiry and reverse the decision.
(3) If the administrator’s decision is “de novo wrong” and he was vested with discretion in reviewing claims, then determine whether “reasonable” grounds supported it (hence, review his decision under the more deferential arbitrary and capricious standard).
(4) If no reasonable grounds exist, then end the inquiry and reverse the administrator’s decision; if reasonable grounds do exist, then determine if he operated under a conflict of interest.
(5) If there is no conflict, then end the inquiry and affirm the decision.
(6) If there is a conflict, the conflict should merely be a factor for the court to take into account when determining whether an administrator’s decision was arbitrary and capricious.

Blankenship v. Metro. Life Ins. Co., 644 F.3d 1350, 1355 (11th Cir.2011). All steps of the analysis are “potentially at issue” when a plan vests discretion in the plan administrator to make benefits determinations. Id. at 1356, n. 7. The plaintiffs bear the burden of proving that they are entitled to ERISA benefits under the plan. Horton v. Reliance Std. Life Ins. Co., 141 F.3d 1038, 1040 (11th Cir.1998).

II. FACTUAL BACKGROUND1

A. The Plan

Goodyear’s plan is a “pension plan” as that term is defined in ERISA, 29 U.S.C. § 1002(2)(A). (Doc. 14-1, p. 8). The plan designates a “Pension Board” to administer the plan. (Doc. 14-9, p. 4). The plan vests the Pension Board with discretionary power over every facet of plan administration. (Id.).

Before a claim reaches the Pension Board in the administrative review process, a plan administrator determines whether to accept or deny a claim for benefits under the pension plan. (Doc. 14-4, pp. 48-49). If a plan administrator denies a claim for pension benefits, then the claimant may appeal using the plan’s administrative review process. (Id. at 47-48). The plan’s administrative review process consists of two levels. The “Benefits Review Committee” conducts the first level of review, and the Pension Board, which is also referred to as the “ERISA Appeals Committee,” conducts the second and final level of review. (Id. at 3-4).

Article V of the plan provides for a QPSA, called the “Special 50% Joint and Survivor Pre-Retirement Option.” (Doc. 16-1, p. 13). Article V(l) states that if an employee dies before receiving his plan benefit payment, his surviving spouse is [1150]*1150entitled to receive monthly benefit payments for the spouse’s lifetime. (Id.). For a surviving spouse to qualify for the monthly benefit, the spouse and the employee must have been married for a one-year period ending on the date of the employee’s death, and the employee must not have elected to waive the pre-retirement spousal benefit. (Id. at 13-14).

The plan does not address eligibility and payment options for the pre-retirement spousal benefit under the plan should the surviving spouse murder the plan participant, violate state or federal law in a manner that would preclude the surviving spouse’s right to such benefit, or otherwise become ineligible for the benefit. (Doc. 16-1; Doc. 16-3, p. 1; Doc. 16-4, p. 1). The plan provides no option for an employee to elect or designate a contingent or secondary beneficiary of the QPSA benefit. (Doc. 16-1; Doc. 16-3, p. 1). Article V(l) provides that only a surviving spouse is eligible for the payment of the pre-retirement spousal benefit, and the plan does not authorize payment of such benefit to another beneficiary. (Doc. 14^4, pp. 26-28). Article V(l) states:

The surviving spouse of a married Employee or former Employee who has at least one hour of service or is on paid leave after August 22, 1984, who is entitled to a pension under the provisions of Article III as in effect on the date of his death, and who dies prior to the commencement of retirement benefits under the Plan will be covered by the Pre-Retirement Benefit described in this Paragraph 1 in lieu of any pension otherwise payable under the Plan; provided that the deceased Employee or former Employee has been married to the surviving spouse throughout the one-year period ending on the date of his death; and provided, further, that during the applicable election period the Employee or former Employee did not elect, with spousal consent, to waive the Pre-Re-tirement Benefit provided hereunder .... Upon the death after August 22,1984, and prior to retirement eligibility of any married Employee or former Employee who has not effectively waived the Pre-Retirement Benefit provided hereunder or who has revoked a prior effective waiver of the Pre-Retirement Benefit provided hereunder, monthly payments will be made to the surviving spouse of the Employee....

(Id.).

B. The Benefit Claim Dispute

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Bluebook (online)
51 F. Supp. 3d 1147, 2014 U.S. Dist. LEXIS 135131, 2014 WL 4793428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/box-v-goodyear-tire-rubber-co-alnd-2014.