Collins v. Central States

820 F. Supp. 1194, 16 Employee Benefits Cas. (BNA) 1826, 1993 U.S. Dist. LEXIS 19279, 1993 WL 156628
CourtDistrict Court, D. Nebraska
DecidedFebruary 3, 1993
DocketNo. 8:CV91-00463
StatusPublished
Cited by1 cases

This text of 820 F. Supp. 1194 (Collins v. Central States) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Central States, 820 F. Supp. 1194, 16 Employee Benefits Cas. (BNA) 1826, 1993 U.S. Dist. LEXIS 19279, 1993 WL 156628 (D. Neb. 1993).

Opinion

MEMORANDUM AND ORDER

CAMBRIDGE, District Judge.

THIS MATTER is before the Court on the defendant’s alternative motions to dismiss for lack of subject matter jurisdiction (Filing No. 21) and for summary judgment (Filing No. 22). Aso pending is the plaintiffs objection (Filing No. 28) to paragraphs 9 and 10 of the affidavit of Abert E. Nelson, offered in support of the defendant’s motion for summary judgment.

As further explained below, the motion for dismissal will be denied, the plaintiffs objection overruled, and the motion for summary judgment granted.

This is an action brought pursuant to the Employee Retirement Income Security Program (“ERISA”, 29 U.S.C. §§ 1001 et seq.) This Court’s jurisdiction is predicated upon 29 U.S.C. § 1132(a)(1)(B). The plaintiff, as personal representative of her late husband,' Richard Collins, seeks to recover health care benefits she claims should have been paid for his medical care during the final months of his terminal illness. The defendant, Central States, Southeast And Southwest Aeas Health and Welfare Fund (hereinafter “Central States” or “defendant”) has denied the claims on grounds that the trustees of the benefit plan appropriately determined that the late husband was not eligible for. benefits under terms of the trust agreement. At issue is whether Richard Collin’s employment relationship with Local 554 of the Teamster’s Union (“Local 554”) was such as to qualify him as an employee of the Union for purposes of the health benefits plan.

Richard Collins had served, from 1972 until his death in 1990, as the executive secretary of the ProLaw Association (“ProLaw”), an organization founded by the Teamsters and two other unions, the Laborers Union and the Union of Operating Engineers. Pro-Law’s purpose, as set forth in its constitution and by-laws, was to promote union activity, to lobby on behalf of union interests, and to educate workers. The record reflects that Mr. Collins was compensated by the Teamsters, which then billed the other two Unions for a share of those payments.

Mr. Collins, however, described himself as “self-employed” in his tax returns, and the Teamsters made no withholding from his compensation. He reported his own business expenses and reported an office distinct from that of the Teamsters. He in fact maintained an office, telephone and stationery separate from that of the Teamsters.

The record also reflects that over the years Mr. Collins had previously made claims for, and recovered for, health benefits under the plan now at issue. He did not, however, receive any pension coverage.

I. MOTION TO DISMISS

The motion to dismiss will be denied. Central States asserts that this Court is without subject matter jurisdiction because Richard Collins was not an employee of Teamsters Local 554 as that term is used in [1196]*1196ERISA. The central assertion in Central States’ alternative motion for summary judgment is that the plan Trustees acted neither arbitrarily nor capriciously when they determined that Richard Collins was not an employee as that term was construed in the pension plan. In either case, his status as an employee is pivotal. Unless the two definitions are entirely independent, the motion for dismissal would be superseded by the motion for summary judgment. “If ... a decision of the jurisdictional issue requires a ruling on the merits of the case, the decision should await a determination of the merits either by the court on a summary judgment motion, or by the fact finder at trial.” 5A Wright and Miller, Federal Practice & Procedure § 1350 (1990). See, e.g., Sierra Club v. Shell Oil Co., 817 F.2d 1169 (5th Cir.1987) (when plaintiff fails to establish fact central to both subject matter jurisdiction and to merits, proper resolution is through summary judgment rather than 12(b)(1) motion).

That is the situation here. The defendant premises its 12(b)(1) motion upon ERISA’s definition of an employee. That definition, as set forth at 29 U.S.C. § 1002(6), provides that an “ ‘employee’ means any individual employed by an employer.” As the United States Supreme Court recently observed, this definition “is completely circular and explains nothing”, necessitating application of common law tests to determine what constitutes an employee. Nationwide Mutual Insurance Co. v. Darden, — U.S. -, -, 112 S.Ct. 1344, 1346, 117 L.Ed.2d 581, 589-90 (1992). Because those same tests would be utilized in resolving Central State’s motion for summary judgment, this Court will deny the motion to dismiss and turn to the motion for summary judgment.

II. OBJECTION TO AFFIDAVIT

The plaintiff objects to certain portions of the deposition of Albert E. Nelson, offered by the defendant in support of its motion for summary judgment. The paragraphs to which the plaintiff objects read, in relevant part:

9. The Central States Health and Welfare Trust was established to provide medical, dental, vision and life insurance benefits for employees who work under the terms of union collective bargaining agreements in the Teamster Industry in the Midwestern, Southeastern and Southern sections of the United States.... The fund also covers employees of the Teamster Unions.
10. Employees become participants of the Central States, Southeast, and Southwest Areas Health and Welfare fund when their employer, pursuant to the terms of a collective bargaining agreement, makes contributions on their behalf to Central States for their benefit so that they and their dependents become eligible for medical coverage. Union “Employees” can also be participants.

(Filing No. 24 at 2-3).

The plaintiff asserts that these paragraphs misconstrue the terms of the trust document by purporting to limit eligible employees to those working under terms of collective bargaining agreements in the Teamster industries. The Court notes that Paragraph 9 provides that “[t]he fund also covers employees of the Teamsters Union” and, accordingly does not read these paragraphs as providing for the limitation of which the plaintiff complains. For that reason the objection will be overruled.

III. MOTION FOR SUMMARY JUDGMENT

Summary judgment is appropriate when there is no genuine issue of material fact and the moving party should prevail as a matter of law. F.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Upon review of a motion for summary judgment, this Court must give the party opposing the motion the benefit of all favorable factual inferences. Holloway v. Lockhart, 813 F.2d 874, 878 (8th Cir.1987).

However, Rule 56(e) also provides that

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
820 F. Supp. 1194, 16 Employee Benefits Cas. (BNA) 1826, 1993 U.S. Dist. LEXIS 19279, 1993 WL 156628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-central-states-ned-1993.