Butler v. FCA US, LLC

119 F. Supp. 3d 699, 2015 U.S. Dist. LEXIS 105003, 2015 WL 4756743
CourtDistrict Court, E.D. Michigan
DecidedAugust 11, 2015
DocketCase No. 14-14752
StatusPublished
Cited by4 cases

This text of 119 F. Supp. 3d 699 (Butler v. FCA US, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butler v. FCA US, LLC, 119 F. Supp. 3d 699, 2015 U.S. Dist. LEXIS 105003, 2015 WL 4756743 (E.D. Mich. 2015).

Opinion

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS (Doc. # 4)

SEAN F. COX, District Judge.

This is an ERISA1 benefits case. Plaintiff John Butler (“Plaintiff’) alleges that Defendant FCA US, LLC2 (“Defendant” or “FCA”) wrongfully denied his claim for benefits after he was seriously injured in an automobile accident. (Compl., Doc. #1).

This matter is before the Court on Defendant’s Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(6). (Doc. #4). The motion has been fully briefed by the parties. For the reasons set forth below, the Court shall GRANT Defendant’s Motion to Dismiss .Count Two of the Complaint, DENY Defendant’s Motion to Dismiss Count Four, and DENY WITHOUT PREJUDICE Defendant’s Motion to Dismiss the entire Complaint based on the affirmative defense of res judicata.

BACKGROUND

Plaintiff was employed by Chrysler Group, LLC (Defendant’s predecessor entity) for more than forty-four years. (Compl., Doc. # 1 at ¶ A). Plaintiff alleges that he purchased and paid for additional disability insurance coverage to supplement the other various employee benefits he received through Chrysler. (Compl. at ¶ A). Specifically, Plaintiff alleges that he was covered under Chrysler’s Group Insurance Plan (“the Plan”) (see Compl. at ¶ 1), and that in 2002 he also purchased Voluntary Group Accident Insurance (“VGAI”) as an option under the Plan. (Compl. at ¶ 7). Plaintiff claims that one of the benefits under the VGAI is a Permanent and Total Disability Benefit (“PTDB”). (Compl. at ¶7). Plaintiff alleges that Metropolitan Life Insurance Company (“MetLife”) was the insurer and third-party administrator of Chrysler’s VGAI Plan, but that “Chrysler is still responsible. for. the Plan and its benefits.” (Compl. at ¶ 8).

Plaintiff alleges that, in 2Ó08, he was rendered permanently and totally disabled by an automobile accident. (Compl. at ¶ B). “Sometime in 2011, [Plaintiff] submitted a claim to MetLife for a disability benefit under the Plan.” (Compl. at ¶ 15). Under the 2002 version of the Plan, which Plaintiff believes applies to his claim for benefits, MetLife is listed as the Plan Underwriter of the VGAI Group Policy. (Compl. at Ex. B, PgID# 71).3

MetLife denied Plaintiffs claim on March 30, 2012. (Compl. at ¶ 16). Plain[702]*702tiff timely appealed, but MetLife denied his claim a second time. (Compl. at ¶ 17). Plaintiff alleges that he communicated with someone at Chrysler’s Plan and Benefit Express (“BE”) who confirmed with MetLife that Plaintiff was entitled to PTDB benefits under the Plan. (Compl. at ¶ 20). Yet, Plaintiff never received those benefits. (Id,.).

On December 5, 2013, Plaintiff, represented by counsel, filed a one count complaint against MetLife, alleging that MetLife wrongfully denied páyment of benefits to Plaintiff in violation of ERISA. (Butler v. Metropolitan Life Ins. Co., Civil Case No. 13-14958, E.D. Mich., Doc. # 1) (“Butler I”). That case was assigned to Honorable Lawrence P. Zatkoff, United States District Judge. On April 4, 2014, after no activity had taken place since the case had been filed, Judge Zatkoff issued an “Order for Plaintiff to Show Cause Why This Case Should Not be Dismissed for Failure to Prosecute.” (Butler I, Case No. 13-14958, Doc. # 4). Plaintiffs response was due by April 18,_ 2014. (Id.). Plaintiff failed to respond to the April 4, 2014 Show Cause Order. On April 22, 2014, Judge Zatkoff dismissed Plaintiffs case for failure to prosecute, pursuant to Local Rule 41.2.4 (Case No. 13-14958, Doc. # 6).

Plaintiff, now represented by different counsel, filed this case against Defendant FCA on December 16, 2014. (Compl., Doc. # 1). In his Complaint, Plaintiff alleges four Counts against FCA:

Count One — Claim for Benefits Pursuant to 29 U.S.C. § 1132(a)(1)(B),■
Count Two — Claim for Failure to Provide Notice of Deletion of Benefits to 29 U.S.C. § 1132(a)(1)(B);
Count Three — Claim for Equitable Es-toppel 29 U.S.C. § 1132(a)(3)(B); and
Count Four — Claim for Failure to Provide Documents Pursuant to 29 U.S.C. § 1024(b)(4).

(Compl., Doc. # 1)..

In lieu of filing an Answer, Defendant has filed a Motion- to Dismiss Pursuant to Civil Rule 12(b)(6). (Doc. #4). Defendant argues that Plaintiffs claims are barred by res judicata based on the dismissal for failure to prosecute of Plaintiffs first case against MetLife. Alternatively, Defendant argues -that Counts Two and Four should be dismissed because they each fail to state a claim upon which relief may be granted. (Doc, # 4 at i). Plaintiff opposes Defendant’s motion. (PI. Resp., Doc. # 10).

STANDARD OF REVIEW

When deciding a motion to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure, the Court must construe the complaint in the light most favorable to the plaintiff and must accept all' the factual allegations contained in the complaint as true. Lambert v. Hartman, 517 F.3d 433, 439 (6th Cir.2008), “When a court is presented with a Rule 12(b)(6) motion, it may consider the Complaint and any exhibits attached thereto, public records, items appearing in the record of the case and exhibits attached to defendant’s motion to dismiss so long as they are referred to in the Complaint and are central to the claims contained therein.” Bassett v. Nat’l Collegiate Athletic Ass’n, 528 F.3d 426, 430 (6th Cir.2008).

[703]*703In order to survive a Rule 12(b)(6) motion to dismiss, Plaintiffs complaint need contain only “enough facts to state a claim for relief that is plausible on its face.” See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). “Where a complaint pleads facts that are. merely consistent with a defendant’s liability, it ‘stops short of the line between possibility and plausibility of entitlement to relief.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (citing Twombly, 550 U.S. at 557,127 S.Ct. 1955). “Determining whether a complaint states a plausible claim for relief will ... be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Iqbal, 556 U.S. at 679, 129 S.Ct. 1937.

ANALYSIS

Defendant argues that all of Plaintiffs claims in this case are barred by the doctrine of res judicata, which is also known as claim preclusion.

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119 F. Supp. 3d 699, 2015 U.S. Dist. LEXIS 105003, 2015 WL 4756743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butler-v-fca-us-llc-mied-2015.