Dauska v. Green Bay Packaging Inc.

291 F.R.D. 251, 2013 WL 2088216, 2013 U.S. Dist. LEXIS 68375
CourtDistrict Court, E.D. Wisconsin
DecidedMay 14, 2013
DocketNo. 12-C-925
StatusPublished
Cited by14 cases

This text of 291 F.R.D. 251 (Dauska v. Green Bay Packaging Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dauska v. Green Bay Packaging Inc., 291 F.R.D. 251, 2013 WL 2088216, 2013 U.S. Dist. LEXIS 68375 (E.D. Wis. 2013).

Opinion

DECISION AND ORDER GRANTING IN PART PLAINTIFF’S MOTION TO COMPEL AND DENYING DEFENDANT’S MOTION FOR SANCTIONS

WILLIAM C. GRIESBACH, Chief Judge.

This ease is before the court for resolution of a discovery dispute. The underlying action arises out of an employment relationship. Plaintiff John Dauska, a former employee of Defendant Green Bay Packaging Inc. (GBP), filed the action alleging that GBP discriminated against him and eventually forced him to retire in violation of the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. Dauska also claims that GBP and Defendant Green Bay Packaging Inc. Severance Plan (the Plan), an entity that GBP contends does not exist, failed to pay him severance benefits in violation of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq. The complaint also asserts state law claims for failing to pay wages in violation of section 109.03 of the Wisconsin Statutes and breach of an express or implied contract. The dispute is framed by two separate motions: GBP’s motion for sanctions under Rule 37(d) for Daus-ka’s failure to appear at his scheduled deposition and plaintiffs motion to compel GBP to fully respond to his interrogatories and request for documents. For the following reasons, Defendants’ motion for sanctions will [254]*254be denied and Dauska’s motion to compel will be granted in part.

BACKGROUND

Some background is needed to place the dispute in context. Dauska worked for GBP, beginning in 1979, as a Corporate Personnel Director. According to the complaint, he was forced to retire against his wishes, despite an outstanding record of over 32 years with GBP. Even before he was forced to retire, Dauska alleges that GBP began reassigning his job responsibilities and treating younger employees more favorably so as to encourage him to resign. When these tactics failed, Dauska alleges the company decided to eliminate his position when he turned sixty-six on February 14, 2011. Dauska also alleges that he was denied severance pay under GBP’s Severance Plan without cause in violation of ERISA.

GBP, on the other hand, denies that it forced Dauska to retire or discriminated against him on account of his age. More importantly for purposes of the present dispute, GBP denies that it has a severance plan. Although it admits that it has paid severance benefits to departing employees on occasion in the past, GBP denies that it has a written severance plan or that it has taken any steps to establish a severance plan. GBP further denies that Dauska is similarly situated to the former employees to whom it has paid severance benefits. It is thus apparent that a major dispute exists between the parties, and therefore a major focus of the plaintiffs discovery is whether GBP has a severance plan within the meaning of ERISA.

ERISA imposes fiduciary duties on employers that establish or maintain an employee benefit plan. A severance plan is considered an employee benefit plan. Although employee benefit plans must be in writing, 29 U.S.C. § 1102(1), the courts have held that there need not be a writing in order for a plan to exist. In Donovan v. Dillingham the Eleventh Circuit set out the prevailing test for determining whether a “plan” has been established within the meaning of ERISA:

In determining whether a plan, fund or program (pursuant to a writing or not) is a reality a court must determine whether from the surrounding circumstances a reasonable person could ascertain the intended benefits, beneficiaries, source of financing, and procedures for receiving benefits.

688 F.2d 1367, 1372 (11th Cir.1982); see also Diak v. Dwyer, Costello & Knox, P.C., 33 F.3d 809, 811 (7th Cir.1994) (“A plan need not be in writing to be covered by ERISA so long as the plan is a reality, meaning something more than a mere decision to extend benefits.”). Every other circuit has also adopted the Donovan approach for determining whether an ERISA plan has been created. See Cvelbar v. CBI Illinois Inc., 106 F.3d 1368, 1378 n. 14 (7th Cir.1997).

More recently, however, several courts, including the Seventh Circuit, have questioned whether the Donovan approach is compatible with two subsequent decisions of the Supreme Court: Massachusetts v. Morash, 490 U.S. 107, 109 S.Ct. 1668, 104 L.Ed.2d 98 (1989), and Fort Halifax Packing Co. v. Coyne, 482 U.S. 1, 107 S.Ct. 2211, 96 L.Ed.2d 1 (1987). In Sandstrom v. Cultor Food Science, Inc., the Court noted that “[b]oth Morash and Ft. Halifax evince reluctance to find that regular and predictable awards of severance or vacation payments establish a ‘plan,’ given the frequency with which these benefits are the subject of bilateral negotiations between employers and departing employees.” 214 F.3d 795, 797 (2000); accord Golden Gate Restaurant Ass’n v. City & County of San Francisco, 546 F.3d 639 652 (9th Cir.2008); see also Kolkowski v. Goodrich Corp., 448 F.3d 843, 849 (6th Cir.2006) (“[T]his Court has not always employed [the Donovan ] test when determining whether an ERISA plan exists in severance package cases.”). Nevertheless, Sandstrom did not overrule Diak or any other Seventh Circuit decision applying Donovan, and it is based on this precedent that Dauska has brought his ERISA claim for severance benefits.

Dauska contends that GBP established, through its policies and practices, a severance benefit plan. Because of his previous positions with GBP as Corporate Personnel Director and Corporate Director of Industrial Relations, Dauska contends he has extensive first-hand experience with GBP’s “long-standing practice of offering severance [255]*255benefits to employees it involuntarily terminated.” (ECF 13-1, at 4.) In fact, Dauska compiled a list of some fifty-seven former GBP employees whom he claims were paid severance benefits and has provided additional names of employees who received such benefits in response to one of GBP’s interrogatories. (ECF 13-1, at 2-4.) The written interrogatories and requests to produce Dauska propounded to GBP seek in large part information and documents that he claims will demonstrate GBP’s severance plan and the circumstances surrounding his retirement.

THE DISPUTE

The current dispute is over the sequence and scope of discovery between the attorneys for the parties: Attorney Jill Weinstein, who represents Dauska, and Attorney David Weber, who represents GBP.

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Bluebook (online)
291 F.R.D. 251, 2013 WL 2088216, 2013 U.S. Dist. LEXIS 68375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dauska-v-green-bay-packaging-inc-wied-2013.