Daniels v. Anchor Hocking Corp.

758 F. Supp. 326, 1991 U.S. Dist. LEXIS 2562, 1991 WL 28780
CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 27, 1991
DocketCiv. A. 86-478
StatusPublished
Cited by17 cases

This text of 758 F. Supp. 326 (Daniels v. Anchor Hocking Corp.) 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
Daniels v. Anchor Hocking Corp., 758 F. Supp. 326, 1991 U.S. Dist. LEXIS 2562, 1991 WL 28780 (W.D. Pa. 1991).

Opinion

OPINION

D. BROOKS SMITH, District Judge.

Plaintiff L. Eugene Daniels is a former management employee of defendant Anchor Hocking Corporation’s (“Anchor”) Shenango China Division. He began his career with Shenango China in 1964, and while employed there saw several changes in management. In 1979, defendant Anchor acquired Shenango China, and continued to employ plaintiff as the Vice President of Manufacturing.

In June 1982, Anchor transferred plaintiff to a new position. In 1983, Anchor again changed plaintiff’s title and reduced his salary by 21.6%. Defendant characterizes this change as a demotion; plaintiff contends that his reduction in salary was part of a company-wide scheme to eliminate overhead in upper and middle management. On August 31, 1985, Anchor terminated plaintiff’s employment.

On March 3, 1986, plaintiff filed this suit. In his complaint, plaintiff alleged that defendants violated Section 1132(a)(1)(B) of the Employee Retirement Income Security Act of 1974 (“ERISA”) 29 U.S.C. § 1001 et seq., by denying him severance pay and health benefits as provided in Anchor’s Personnel Policy No. 2-10-1, Severance, *328 Layoff, and Recall Procedures for Salaried Employees. (“Severance Policy”). Defendant filed an answer in which it claims that it did not violate the terms of the severance policy by denying plaintiff benefits because plaintiff was not eligible for benefits under the terms of the plan.

The case is now before the Court on defendant’s motion for summary judgment. Plaintiff contests this motion for summary judgment by claiming that there are genuine disputes as to material facts that preclude granting summary judgment. Defendants respond that the only disputed facts are not material to the ultimate question of plaintiffs eligibility for severance benefits. We agree and therefore grant defendants’ motion.

Rule 56 of the Federal Rules of Civil Procedure allows a party to obtain summary judgment upon a showing that there are no genuine issues of material fact and that the moving party is entitled to summary judgment as a matter of law. Fed.R.Civ.P. 56(c). Summary judgment is not “regarded as a disfavored procedural shortcut but rather as an integral part of the Federal Rules ...” Celotex Corp. v. Catrett, 477 U.S. 317, 327, 106 S.Ct. 2548, 2555, 91 L.Ed.2d 265 (1986). When reviewing a motion for summary judgment, we must view the evidence in the light most favorable to the nonmoving party. Lang v. New York Life Ins. Co., 721 F.2d 118, 119 (3d Cir.1983). However, the nonmoving party must produce more than a mere scintilla of evidence to avoid summary judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 262, 106 S.Ct. 2505, 2517, 91 L.Ed.2d 202 (1986). Indeed, Rule 56(c) states that the nonmoving party “must set forth facts showing that there is a genuine issue for trial.” Moreover, “the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be a genuine issue of material fact.” Anderson, 477 U.S. at 248, 106 S.Ct. at 2510. The substantive law governing the case controls which facts are material. Ibid. Similarly, “the determination of whether a given factual dispute requires submission to a jury must be guided by the substantive evidentiary standards that apply to the case.” Id. 477 U.S. at 255, 106 S.Ct. at 2514. With these principles in mind, we turn to the merits of the instant case.

The threshold issue which confronts us concerns the standard of review. In Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989), the Supreme Court held that a denial of benefits “is to be reviewed under a de novo standard of review unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan.” Id. at 115, 109 S.Ct. at 956. The Supreme Court did not, however, specifically articulate the standard of review to be applied by courts reviewing decisions made under discretionary plans. After Bruch, this court held that “[i]n the event a plan gives an administrator or fiduciary discretion to determine eligibility or construe uncertain terms, an arbitrary and capricious standard will apply.” Adamo v. Anchor Hocking Corp., 720 F.Supp. 491, 499 (W.D.Pa.1989). See also Stoetzner v. U.S. Steel Corp., 897 F.2d 115, 119 (3d Cir.1990) (holding that where a plan grants an administrator discretion in making eligibility determination, a court must review that determination under the arbitrary and capricious standard.)

The plan at issue in the instant case is the same plan that was at issue in Adamo, supra. In Adamo, this Court concluded that the plan “clearly grants the administrator the power to construe uncertain terms. As a matter of law, therefore, the severance plan is discretionary and an arbitrary and capricious standard must be applied.” Id. 720 F.Supp. at 499. The parties here agree that the plan vests the administrator with discretion to construe uncertain terms and to make decisions concerning eligibility. The parties disagree, however, as to the applicable standard of review. Defendant contends that because the plan grants the administrator discretion, the administrator’s decision cannot be overturned unless it is arbitrary and capricious. Plain *329 tiff, however, contends that the Supreme Court’s decision in Bruch mandates review under an abuse of discretion standard because the plan is unfunded and the administrator operates under an inherent conflict of interest.

We find plaintiff’s argument untenable for several reasons. First, plaintiff has not provided the Court with any explanation as to how the arbitrary and capricious standard is different from the abuse of discretion standard. Nor does plaintiff provide the Court with any statement of the analytical framework mandated by either standard of review. Instead, plaintiff perfunctorily asserts, without citation or explanation, that the arbitrary and capricious standard is narrower than the abuse of discretion standard. Defense counsel has also failed to squarely address this issue; he simply relies on this Court’s statement in Adamo

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Bluebook (online)
758 F. Supp. 326, 1991 U.S. Dist. LEXIS 2562, 1991 WL 28780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniels-v-anchor-hocking-corp-pawd-1991.