Electrical Welfare Trust Fund v. United States

United States Court of Federal Claims·Decided May 12, 2023·No. 19-353·Unpublished

Opinion

In the United States Court of Federal Claims

ELECTRICAL WELFARE TRUST FUND, et al.,

Plaintiffs, No. 19-cv-353

v. Filed: May 12, 2023

THE UNITED STATES,

Defendant.

ORDER DIRECTING ENTRY OF JUDGMENT PURSUANT TO RULE 54(b)

On March 8, 2019, Plaintiffs Electrical Welfare Trust Fund (EWTF), Operating

Engineers Trust Fund of Washington, D.C. (OETF), and Stone & Marble Masons of

Metropolitan Washington, D.C. Health and Welfare Fund (Stone Masons) filed their

Complaint, alleging Illegal Exaction and Fifth Amendment Takings claims against

Defendant stemming from certain payments into the Affordable Care Act Transitional

Reinsurance Program that Defendant had required of Plaintiffs. Complaint, ECF No. 1;

Second Amended Complaint, ECF No. 59. Defendant moved to dismiss Plaintiffs’

Complaint on May 7, 2019, and this Court granted Defendant’s Motion to Dismiss as related

to OETF’s and Stone Mason’s Illegal Exaction claims, but denied the Motion as related to

those parties’ Takings claims and as to EWTF’s Illegal Exaction claim. ECF Nos. 6, 22.

Subsequently, Plaintiffs twice amended their Complaint, and the case proceeded on parallel

tracks related to the Illegal Exaction Claims and the Takings Claims, respectively. ECF Nos.

28, 59. This Order concerning partial Judgment relates only to the Illegal Exaction claims. On April 8, 2022, EWTF moved to certify a class of entities alleging Illegal Exaction

claims. ECF No. 53. On June 22, 2022, this Court certified the following class:

All self-administered, self-insured employee health and welfare benefit plans that are or were subject to the assessment and collection of the Transitional Reinsurance Contribution under Section 1341 of the Affordable Care Act for benefit year 2014 (the “Exaction Class” or “Class”).

Class Certification Opinion, ECF No. 70 at 10–11.

Following class certification, Class Counsel issued a Notice to proposed Exaction

Class members, and sent such Notice to approximately 650 plans identified by Government

records as being self-insured and self-administered (i.e., putative members of the Exaction

Class). See ECF Nos. 111, 92, 87-1. On November 11, 2022, this Court directed Class

Counsel to “certify final membership in the Exaction Class by identifying the name of each

member of the Exaction Class to the Court and providing, to the Court and Defendant, a

copy of the opt-in form completed by each Exaction Class member and submitted to Class

Counsel.” ECF No. 92 at 5.

During this time period, EWTF and the Exaction Class (collectively, Class Plaintiffs)

filed a Motion for Summary Judgment on the Illegal Exaction Claim, which was

substantively unopposed by Defendant. See ECF No. 72 (Motion); Defendant’s Response

to Plaintiffs’ Motion for Summary Judgment, ECF No. 80. On December 21, 2022, this

Court granted the Class Plaintiffs’ Motion and stated its intent to direct entry of Judgment

on the Class’s Illegal Exaction claim pursuant to Rule 54(b). ECF No. 97. Class Plaintiffs

filed their initial Certification of Final Membership in the Exaction Class (ECF No. 106) on

February 2, 2023, and on February 10, 2023, Class Plaintiffs filed an unopposed

Supplemented Certification of Final Membership in the Exaction Class (ECF No. 111),

which included an exhibit listing a final Exaction Class membership of 357 entities and the

2 amount due to each entity. See ECF No. 111-1. The Class Plaintiffs requested the Court

enter an order directing the Clerk to enter partial Judgment pursuant to Rule 54(b) in favor

of the Exaction Class in the total amount of $185,230,024.42. ECF No. 111 at 4. The Class

Plaintiffs also detailed Class Counsel’s efforts to verify the eligibility of opt-in plans to be

part of the Exaction Class, as well as their efforts, working with Defendant, to verify amounts

owed to each class member. Id. at 2–4.

On March 1, 2023, Defendant filed an Objection to Certification of Final

Membership in the Exaction Class, objecting to entry of Judgment related to 157 of the 357

proposed members of the Exaction Class. ECF No. 114 (Objection). Class Plaintiffs filed

their Reply in Further Support of Final Membership in the Exaction Class on March 28,

2023, providing further, helpful information. ECF No. 118. Subsequently, the parties met

and conferred and resolved their differences related to Defendant’s Objection to entry of

Judgment as to 157 members of the Exaction Class. Accordingly, on May 11, 2023, during

oral argument, Defendant’s counsel formally withdrew its Objection on the record and stated

that Defendant did not object to this Court directing entry of Judgment for all 357 members

of the Exaction Class. See Oral Argument Transcript, May 11, 2023. Class Counsel

confirmed on the record that the parties agreed that Judgment should be entered for the 357

members of the Exaction Class. The parties do not dispute the amount owed by Defendant

in total or to each Exaction Class member.

This Court has thoroughly reviewed the parties’ briefs, exhibits, and arguments as to

the now-unopposed request for entry of Judgment related to the 357 members of the Exaction

Class, and finds that there is good cause shown to enter Judgment in favor of such Exaction

Class members.

3 Accordingly, pursuant to Rule 54(b), there being no just reason for delay, the Clerk

of Court is DIRECTED to enter partial Judgment in favor of the 357 Exaction Class

Plaintiffs in the total amount of $185,230,024.42 in damages, to be distributed as set forth

in the attached exhibit, initially filed by Plaintiffs and subsequently approved by Defendant.

See ECF No. 111-1.

IT IS SO ORDERED.

Eleni M. Roumel ELENI M. ROUMEL Judge

4 EXHIBIT 1 SISA Record Identifying Submission Type Name 2014 Damages Number

54 E‐mail/Regular Mail 1199SEIU GREATER NEW YORK BENEFIT FUND $1,880,487.00 50 E‐mail/Regular Mail 1199SEIU HOME CARE EMPLOYEES BENEFIT FUND $1,509,480.00 37 E‐mail/Regular Mail 1199SEIU NATIONAL BENEFIT FUND FOR HEALTH AND HUMAN SERVICE EMPLOYEES $12,141,297.00 227 Online Portal ADMINISTRATIVE DISTRICT COUNCIL 1 WELFARE FUND $204,876.00 635 E‐mail/Regular Mail ADVENTIST HEALTH EMPLOYEE MEDICAL PLAN ‐ BASE* $1,895,859.00 635 E‐mail/Regular Mail ADVENTIST HEALTH EMPLOYEE MEDICAL PLAN ‐ ENGAGED* 473 E‐mail/Regular Mail AFL‐AGC BUILDING TRADES WELFARE PLAN $56,301.21 47 Online Portal AFTRA HEALTH FUND $843,822.00 380 E‐mail/Regular Mail AHMC HEALTHCARE INC. $425,817.00 606 Online Portal ALASKA ELECTRICAL HEALTH AND WELFARE FUND $430,164.00 442 E‐mail/Regular Mail ALLIED SERVICES DIVISION WELFARE FUND $151,179.21 488 Online Portal ARKANSAS BEST CORPORATION EMPLOYEE WELFARE BENEFIT PLAN $471,555.00 237 Online Portal AUTOMATIC SPRINKLER LOCAL 281 U.A. WELFARE FUND $137,781.00 355 E‐mail/Regular Mail AVANT MINISTRIES MISSIONARY MEDICAL AID PLAN $21,924.00 399 Online Portal BAKERY AND CONFECTIONERY UNION AND INDUSTRY INTERNATIONAL HEALTH BENEFITS FUND $72,470.79 239 E‐mail/Regular Mail BAKERY CRACKER PIE & YEAST WAGON DRIVERS LOCAL 734 WELFARE FUND $175,896.00 358 E‐mail/Regular Mail BANNER HEALTH MASTER HEALTH AND WELFARE BENEFIT PLAN $2,794,369.41 9 E‐mail/Regular Mail BARROW INDUSTRIES INC. $6,489.00 260 Online Portal BEER INDUSTRY LOCAL UNION NO. 703 HEALTH AND WELFARE FUND $85,428.00 377 Online Portal BENEFIT MANAGEMENT INC HEALTHCARE PLAN $6,008.31 643 Online Portal BEST LIFE AND HEALTH INSURANCE COMPANY $1,323.00 508 Online Portal BLUE BELL CREAMERIES INC.

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