Donovan v. Robbins

99 F.R.D. 593, 1983 U.S. Dist. LEXIS 13035
District Court, N.D. Illinois·Decided October 5, 1983·No. Nos. 78 C 4075, 82 C 7951·Published·Cited by 12 cases

Opinion

MEMORANDUM OPINION

WILL, District Judge.

These cases are before us on the motion of the Secretary of Labor (the Secretary), [595] pursuant to Fed.R.Civ.P. 12(f), to strike certain defenses in the Amended Answer filed in Donovan v. Robbins, 78 C 4075 (“78 C 4075”), by several defendants, hereinafter to be referred to collectively as “Amalgamated” or “the Amalgamated defendants”1 and to strike certain affirmative defenses in the Answer filed by those defendants in Donovan v. Dorfman, 82 C 7951 (“82 C 7951”). For the reasons which follow, that motion is granted in part and denied in part.

The Secretary has invoked our jurisdiction under 29 U.S.C. § 1132(e)(1). He contends that certain current and former trustees and other alleged fiduciaries of the Central States, Southeast and Southwest Areas Health and Welfare Fund (the Plan) breached certain of the loyalty obligations imposed by sections 404 and 406 of the Employment Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1104 and 1106. In the Second Amended Complaint in 78 C 4075, the Secretary alleges that the Amalgamated defendants, who are alleged to be parties in interest under section 3(14)(H) of ERISA, 29 U.S.C. § 1002(14)(H), and/or, by virtue of their alleged “special relationship” with the Plan, fiduciaries under section 3(21) of ERISA, 29 U.S.C. § 1002(21), profited from transactions prohibited by section 406(a)(1)(D) of ERISA, 29 U.S.C. § 1106(a)(1)(D).

The Secretary’s Amended Complaint in 82 C 7951 contains a similar allegation of profit from transactions proscribed by section 406(a)(1)(D) of ERISA (Counts I and III). The Secretary also alleges that the Amalgamated defendants “aided and abetted” breaches by other fiduciaries of the Plan of their duty of loyalty and of the “prudent man” requirement imposed by section 404(a)(1)(A) and (B) of ERISA, 29 U.S.C. § 1104(a)(1)(A) and (B) (Counts II, IV and V). The Amalgamated defendants, allegedly fiduciaries of the Plan, are also charged with having personally breached the duties of loyalty and of prudent dealing by their operation of Amalgamated and of having violated certain duties to prevent breaches of co-fiduciaries which are imposed by section 405 of ERISA, 29 U.S.C. § 1105 (Count VI). And, finally, this Amended Complaint challenges the permissibility under section 406(a)(1)(D) of ERISA of a proposed acquisition by the Plan of certain Amalgamated assets (Count VII). The amended complaints at issue in both cases seek various forms of equitable relief.

In response to these claims, the Amalgamated defendants have raised a variety of traditional equitable and other defenses, which, the Secretary contends, are impertinent or immaterial and unresponsive or otherwise improper in these proceedings of the Secretary for equitable relief pursuant to ERISA. Amalgamated interposes the following challenged defenses: (1) that the Second Amended Complaint in 78 C 4075 does not state a claim upon which relief may be granted (SECOND DEFENSE); that Counts I through VI of the Amended Complaint in 82 C 7951 do not state a claim upon which relief may be granted against certain of the Amalgamated defendants (FIRST and SECOND AFFIRMATIVE DEFENSES); and that Count VI of the 82 C 7951 complaint does not state a claim upon which relief may be granted (THIRD AFFIRMATIVE DEFENSE); (2) that the Secretary is not entitled to equitable relief because neither he nor the Plan will suffer any. irreparable injury from dealings between Amalgamated and the Plan (78 C 4075, FOURTH DEFENSE) and, further, that equitable relief should be denied because its award would work an undue hardship on Amalgamated and the Plan (78 C 4075, SIXTH DEFENSE); (3) that the Secretary has an adequate remedy at law with respect to any possible future violations of ERISA (78 C 4075, FIFTH DEFENSE); (4) that Amalgamated’s dealings with the Plan [596] have been objectively fair and that Amalgamated’s services to the Plan have been excellent (82 C 4075, the second2 FIFTH AFFIRMATIVE DEFENSE); (5) that equitable relief is not available to the Secretary by virtue of the doctrine of unclean hands (72 C 4075, THIRD DEFENSE; 82 C 7951, the first FIFTH AFFIRMATIVE DEFENSE) and laches (82 C 7951, FOURTH AFFIRMATIVE DEFENSE); (6) finally, the Amalgamated defendants state that the complaint against them is “a sham” (82 C 7951, SIXTH AFFIRMATIVE DEFENSE).

A motion under Fed.R.Civ.P. 12(f)3 to strike portions of a responsive pleading serves the limited purpose of excluding irrelevant material from pending litigation. Issues that are raised in a responsive pleading which are not in fact responsive to the plaintiff’s cause of action need not be allowed to complicate and impede the progress of pre-trial discovery. See generally 5 C. Wright and A. Miller, Federal Practice and Procedure § 1380 (1969). In the Seventh Circuit in particular, vague allegations that seek to raise defenses of dubious legal merit are subject to being stricken for “indefiniteness.” See United States v. 416.81 Acres of Land, 514 F.2d 627, 629-32 (7th Cir.1975) (approving the striking of vague and conclusory allegations of bad faith in answer to a complaint in condemnation notwithstanding the existence of authority suggesting that exceptional or egregious bad faith might be a defense).

The 12(f) motion is not, however, a device for forcing revisions in or recaptioning of portions of pleadings, an exercise which, it has often been noted, does nothing to advance the progress of litigation. See e.g. City of Chicago v. Allen Bradley Co., 32 F.R.D. 448, 450 (N.D.Ill.1963). Therefore, to the extent assertions that are labeled “defenses” put into issue relevant and substantial legal and factual questions, they are “sufficient” and may survive a motion to strike even if they might not totally bar the plaintiff’s claim. See e.g. Doble v. Standard Brands, 11 F.R.D. 200, 201-202 (D.Mass.1951); 5 C. Wright and A. Miller, Federal Practice and Procedure § 1381 (1969). Where the Secretary and Amalgamated, for whatever reasons, have both failed adequately to address certain of the substantive legal questions underlying this motion to strike, we are particularly reluctant to rule on the absolute or legal sufficiency of a “defense” that, at least, constitutes a pertinent and material response to the complaint.

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Donovan v. Robbins, 99 F.R.D. 593, 1983 U.S. Dist. LEXIS 13035 (N.D. Ill. 1983).

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