Efficient Management Systems, Inc. v. Morin

4 Mass. L. Rptr. 426
CourtMassachusetts Superior Court
DecidedOctober 12, 1995
DocketNo. 9206848
StatusPublished

This text of 4 Mass. L. Rptr. 426 (Efficient Management Systems, Inc. v. Morin) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Efficient Management Systems, Inc. v. Morin, 4 Mass. L. Rptr. 426 (Mass. Ct. App. 1995).

Opinion

Houston, J.

Plaintiff Efficient Management Systems, Inc. brings this action for breach of contract, violation of G.L.c. 93A, and tortious interference with advantageous relations against defendants Philip Morin and Laurence L. Moran as trustees of Truck Drivers’ Union Local Number 42 Health and Welfare Fund and Robert Marshall as trustee of the New England Teamsters and Baking Industries Fund. Defendants Morin, Moran and Marshall filed motions for summary judgment pursuant to Mass.R.Civ.P. 56. Plaintiff filed a timely opposition and similarly moved for summary judgment. For the following reasons, the defendants motions are ALLOWED in part and DENIED in part and the plaintiffs motion is DENIED.

BACKGROUND

Plaintiff Efficient Management Systems, Inc. (EMS) is a Massachusetts corporation engaged in employee benefits administration. Defendants Philip R. Morin (Morin) and Laurence L. Moran (Moran) are trustees of Truck Drivers’ Union Local Number 42 Health and Welfare Fund (Local 42 Fund). Defendant Robert Marshall is a trustee of the New England Teamsters and Baking Industries Fund (Baking Fund).

The trustees of Local 42 Fund entered into a yearly contract with EMS on or about January 10, 1991. Under the Administrative Services Agreement (Agreement), EMS was to process and administer the accounts of each of the members of the Local 42 Fund. The Agreement ran from February 1, 1991 to January 31,1992 and was amended once on January 13,1992. Under this amendment, the Agreement was renewed by the trustees of Social 42 Fund to run from February 1, 1992 until January 31, 1993. On or about July 1, 1992, the Agreement was further amended to include additional administrative functions on the part of EMS.

Between September 30, 1986 and August 1992, the Local 42 Fund experienced financial difficulties due to increasing insurance premiums. As a result of these economic considerations, the trustees entered into a contract with the trustees of the Baking Fund. Under the contract, the Local 42 Fund would cease to exist and the Baking Fund agreed to accept the former Local 42 plan participants into its own fund and to provide health care coverage to them at specified levels. The agreement between the two funds included a provision which purported to disavow all liability incurred previously by the Local 42 Fund or its trustees.

Both funds are Massachusetts trusts and employee welfare benefit plans within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA) and as amended.2 29 U.S.C. §1002(1) (1985 & Supp. 1995).

Following the execution of the Agreement, trustees of the Local 42 Fund notified EMS of the impending discontinuance of Local 42 Fund operations. On August 31, 1992, the trustees of the Local 42 Fund informed EMS that its services would be terminated, effective October 1, 1992. EMS returned all fund records to Local 42 Fund as requested by its trustees on or around September 30, 1992.

As a result of the above events, EMS brings this action alleging that Marshall, as trustee of the Baking Fund, breached a contract with EMS or, in the alternative, interfered with an advantageous business relationship. The action further alleges that Morin and Moran, as trustees of the Local 42 Fund, breached the Agreement by terminating it prematurely. EMS also contends that Morin and Moran misled it with regard to the impending termination of operations which occurred on September 30, 1992, thereby committing unfair and deceptive trade practices in violation of G.L.c. 93A.

Morin and Moran move for summary judgment asserting that they may not be held personally liable on the contract as trustees and any such claim is preempted under ERISA. Marshall also seeks summary judgment based upon the absence of an express or implied contract, the lack of proof of improper motive or means, and federal preemption. EMS submits its own cross-motion for summary judgment alleging the facts warrant a finding as a matter of law because there has been no ERISA preemption and a de facto merger, or, in the alternative, improper interference on Marshall’s part.

DISCUSSION

This court grants summary judgment where there are no genuine issues of material facts and where the summary judgment record entitles the moving party to judgment as a matter of law. Cassesso v. Comm’r of Correction, 390 Mass. 419, 422 (1983); Community Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976); Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue, and that the summary judgment record entitles the moving party to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). A party moving for summary judgment who does not bear the burden of proof at trial demonstrates the absence of a triable issue either by submitting affirmative evidence negating an essential element of the nonmoving party’s case or by showing the nonmov-ing party is unlikely to submit proof of that element at trial. Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991).

The nonmoving party cannot defeat the motion for summary judgment by resting on its pleadings and mere assertions of disputed facts. LaLonde v. Eissner, 405 Mass. 207, 209 (1989). A court will grant summary judgment to the party entitled to judgment as a matter of law if all parties have moved for summary judgment and “there is no real dispute [concerning] salient facts” or if a case only involves a question of law. Cassesso v. Comm’r of Correction, supra.

[428]*428ERISA explicitly preempts “any and all State laws” that “relate to any employee benefit plan...” 29 U.S.C. §1144(a). The words “relate to” have been construed broadly. Pace v. Signal Technology Corp., 17 Mass. 154, 156(1994). A state law may relate to an employee benefit plan even though it does not conflict with ERISA’s own requirements. District of Columbia v. Greater Washington Board of Trade, 113 S.Ct. 580, 583 (1992). ERISA preempts even state laws which are “a help, not a hindrance,” to the plans, and regardless of whether there is a “comfortable fit” between a state’s law and ERISA’s overall aims. McCoy v. MIT, 950 F.2d 13, 18 (1st Cir. 1991), cert. denied, 504 U.S. 910 (1992). Under this expansive construction, “even common law claims that do not intrinsically affect ERISA plans are preempted if in application they relate to such plans.” Quigley v. Unum Life Ins. Co., 688 F.Supp. 80, 82 (D.Mass. 1988), citing Pilot Life Insurance Co. v. Dedeaux, 481 U.S. 41 (1987).

Congress adopted the sweeping preemption clause with the intention of protecting the interests of the plan beneficiaries. Attorney General v. Travelers Ins. Co., 385 Mass. 598, 602 (1982). The goal was to ensure that employee benefit plans would not face “conflicting or inconsistent State and local regulation.” Shaw v. Delta Airlines, 463 U.S. 85, 105 (1983).

I.

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Related

Shaw v. Delta Air Lines, Inc.
463 U.S. 85 (Supreme Court, 1983)
Pilot Life Insurance v. Dedeaux
481 U.S. 41 (Supreme Court, 1987)
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482 U.S. 1 (Supreme Court, 1987)
MacKey v. Lanier Collection Agency & Service, Inc.
486 U.S. 825 (Supreme Court, 1988)
Ingersoll-Rand Co. v. McClendon
498 U.S. 133 (Supreme Court, 1990)
Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
LaLonde v. Eissner
539 N.E.2d 538 (Massachusetts Supreme Judicial Court, 1989)
McCarthy v. Litton Industries, Inc.
570 N.E.2d 1008 (Massachusetts Supreme Judicial Court, 1991)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
United Truck Leasing Corp. v. Geltman
551 N.E.2d 20 (Massachusetts Supreme Judicial Court, 1990)
Kourouvacilis v. General Motors Corp.
575 N.E.2d 734 (Massachusetts Supreme Judicial Court, 1991)
Flesner v. Technical Communications Corp.
575 N.E.2d 1107 (Massachusetts Supreme Judicial Court, 1991)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Quigley v. Unum Life Insurance
688 F. Supp. 80 (D. Massachusetts, 1988)
Riseman v. Orion Research Inc.
475 N.E.2d 398 (Massachusetts Supreme Judicial Court, 1985)
Attorney General v. Travelers Insurance
433 N.E.2d 1223 (Massachusetts Supreme Judicial Court, 1982)

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Bluebook (online)
4 Mass. L. Rptr. 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/efficient-management-systems-inc-v-morin-masssuperct-1995.