Byrnes v. Chevron Corporation

CourtDistrict Court, N.D. California
DecidedMay 3, 2024
Docket3:21-cv-02686
StatusUnknown

This text of Byrnes v. Chevron Corporation (Byrnes v. Chevron Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Byrnes v. Chevron Corporation, (N.D. Cal. 2024).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 PLAN ADMINISTRATOR OF THE Case No. 20-cv-07063-TSH CHEVRON CORPORATION 8 RETIREMENT RESTORATION PLAN, et al., ORDER DENYING MOTION TO 9 CONSOLIDATE Plaintiffs, 10 Re: ECF No. 107 v. 11 ANNE MINVIELLE, et al., 12 Defendants. 13 MARTIN FRANCIS BYRNES, 14 Case No. 21-cv-02686-TSH Plaintiff, 15 Re: ECF No. 32 v. 16 CHEVRON CORPORATION, et al., 17 Defendants. 18 19 I. INTRODUCTION 20 Two cases have been assigned to the undersigned magistrate judge: Plan Administrator of 21 the Chevron Retirement Restoration Plan et al. v. Anne Minvielle et al.; Martin Byrnes v. Anne 22 Minvielle et al., Case No. 3:20-CV-07063-TSH, and Martin Francis Byrnes v. Chevron 23 Corporation et al., Case No. 3:21-CV-02686-TSH. Martin Francis Byrnes, who is a defendant 24 and the crossclaimant in 20-7063 and the plaintiff in 21-2686, moves the Court to consolidate the 25 two cases pursuant to Federal Rule of Civil Procedure 42. 20-7063, ECF No. 107; 21-2686, ECF 26 No. 32.1 Chevron Corporation, the Chevron Retirement Plan and the Chevron Employee Savings 27 1 Investment Plan (collectively, “Chevron Defendants”) filed an opposition (ECF No. 38), but no 2 other parties filed a response. Byrnes filed a reply. ECF No. 41. The Court held a hearing on 3 May 2, 2024. Having considered the parties’ positions, relevant legal authority, and the record in 4 this case, the Court DENIES the motion for the following reasons. 5 II. BACKGROUND 6 A. 20-7063 7 Chevron Corporation commenced this interpleader action to determine the proper 8 beneficiary of two Chevron benefit plans held by its former employee, Margaret Broussard. 20- 9 7063, Sec. Am. Compl. ¶ 3, ECF No. 59. Defendant Anne Minvielle, who was Broussard’s sister, 10 resides in Louisiana with her husband, Defendant Leon Minvielle. Id. ¶¶ 6, 8. Defendant Martin 11 Byrnes, who was married to Broussard at certain times during her employment with Chevron, 12 resides in France. Id. ¶¶ 9-10. 13 Broussard died on January 21, 2019. Id. ¶ 5. During her work with Chevron, she earned a 14 benefit under the Retirement Restoration Plan (“RRP”). Id. ¶ 17. She also was awarded non- 15 qualified stock options under the Long-Term Incentive Plan (“LTIP”) (collectively, the “Plans”). 16 Id. ¶ 20. The Plans permit a participant to designate a beneficiary to receive outstanding benefits 17 in the event of the participant’s death. Id. ¶¶ 30, 31. On January 12, 2017, Chevron received a 18 form purporting to name Anne Minvielle as the sole beneficiary. Id. ¶ 35. On March 17, 2017, 19 Broussard also provided to Chevron a document represented as a post-nuptial agreement between 20 Broussard and Byrnes, which included a division of Broussard’s benefits under the Plan. Id. ¶ 38. 21 Byrnes and Anne Minvielle both contend they are the rightful recipients of the benefits 22 owed under the Plans. Byrnes argues he is entitled to benefits as Broussard’s surviving spouse. 23 Answer ¶ 35(b), 20-7063, ECF No. 61. Byrnes also alleges that the form received by Chevron 24 designating Anne Minvielle as beneficiary is void because either the form itself was improper, it 25 was a forgery, or Broussard did not have the mental capacity or was unduly influenced by Anne 26 Minvielle to sign it. Id. ¶¶ 35(d)-(g). Byrnes brings four claims: 27 1) To Enforce His Rights Under the Terms of the Plan – ERISA § 502(a)(1)(B); 1 3) Declaratory Relief; and 2 4) Improper Conveyance of Personal Property; Cal. Prob. Code §850. 3 Id. ¶¶ 119-27. 4 After Chevron was unable determine whether Anne Minvielle or Byrnes was the proper 5 beneficiary, it commenced this interpleader action on October 9, 2020. 20-7063, ECF No. 1. 6 Chevron sought a determination as to the proper beneficiary to any benefits owed with respect to 7 Broussard under the Plans, namely: (1) five annual installment payments owed under the RRP; (2) 8 shares held in a Morgan Stanley account resulting from Broussard’s January 2020 cashless 9 exercise of 2,600 options; (3) outstanding LTIP option awards to Broussard; and (4) a cash 10 payment resulting from the 2019 Performance Share Units payment held following Broussard’s 11 death. Id. at 8-9. On July 26, 2021, the Court determined Chevron had established the grounds 12 for interpleader and discharged it from this case. 20-7063, ECF No. 57. Byrnes and the 13 Minvielles are the only remaining parties. 14 On September 30, 2021, the Court granted the Minvielles’ motion to stay this case pending 15 determination of a probate case pending in Louisiana state court regarding allocation of 16 Broussard’s estate. 20-7063, ECF No. 73. On November 9, 2023, the Court granted Byrnes’s 17 motion to lift the stay, as the Louisiana court determined that it did not have subject matter 18 jurisdiction to determine claims related to Broussard’s LTIP or RRP. 20-7063, ECF No. 86. 19 B. 21-2686 20 Byrnes filed the 21-2686 case on May 6, 2021, naming several defendants: Chevron 21 Corporation, Chevron Corporation Retirement Plan, Chevron Corporation Employee Savings 22 Investment Plan, Insight Wealth Strategies, Fidelity Management Trust Company, and Anne 23 Minvielle. 24 The Chevron Corporation Retirement Plan (“RP”), a defined benefit pension benefit plan, 25 and the Chevron Corporation Employee Savings Investment Plan (“ESIP”), a defined contribution 26 pension benefit plan, are employee pension benefit plans that are administered by Chevron. First 27 Am. Compl. ¶ 3, ECF No. 13. While she was an employee of Chevron, Broussard was a 1 under the RP was approximately $1.9 million, and the value of the benefits due under the ESIP 2 was approximately $3.1 million. Id. ¶ 11. 3 On or about May 17, 2017, Insight executed and filed documents on behalf of Broussard 4 establishing a traditional Individual Retirement Account and a Roth Individual Retirement 5 Account. Id. ¶ 12. Insight was the investment adviser and was conferred discretionary authority 6 to manage and cause the distribution of assets from the IRAs. Id. Fidelity was made the custodian 7 of the IRAs, and Minvielle was named the death beneficiary of the IRAs. Id. 8 Byrnes named Insight as a defendant “due to its fiduciary authority over the IRAs, which 9 Byrnes contends below holds assets of the RP and the ESIP that constitute plan assets 10 notwithstanding that they were previously distributed from those plans’ trusts.” Id. ¶ 13. Byrnes 11 named Fidelity as a defendant “in its capacity as the custodian or trustee of the IRAs, and as a 12 constructive trustee of the assets held in the IRAs for the benefit of Byrnes or the Plans.” Id. ¶ 14. 13 Byrnes named Minvielle as a defendant “in her capacity as the named death beneficiary of the 14 IRAs and their current named holder, and as a competing claimant to the benefits that, in this 15 action, Byrnes claims are properly payable to him.” Id. ¶ 15. 16 On a date unknown but between May 18, 2017, and December 31, 2018, Chevron made a 17 payment or payments into either or both IRAs which in total was equal to the entire value of 18 Broussard’s accrued benefits under the RP and ESIP combined, an amount of approximately $5 19 million. Id. ¶ 16. Byrnes claims to be entitled to either all the RP and ESIP benefits that were 20 paid out to Broussard or to beneficial ownership of the IRAs. Id. ¶ 17.

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Bluebook (online)
Byrnes v. Chevron Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byrnes-v-chevron-corporation-cand-2024.