Hamer v. JP Morgan Chase Long-term Disability Benefit Plan

District Court, N.D. California·Decided June 16, 2023·No. 3:22-cv-06886·Unknown

Opinion

San Francisco Division ANTHONY S. HAMER, Case No. 22-cv-06886-LB

Plaintiff, ORDER GRANTING MOTION TO v. TRANSFER VENUE

JP MORGAN CHASE LONG-TERM Re: ECF Nos. 19, 26 DISABILITY BENEFIT PLAN, et al., Defendants. This is an employee-benefits dispute over the long-term disability benefits that were paid to Kenneth Morrison, a deceased former Vice President of JP Morgan Chase. Mr. Morrison, who worked in New York City and lived in Connecticut, became permanently disabled when he was struck by a taxi in 1995. From then until his 2022 death, he was paid benefits under Chase’s long- term disability plan for its employees. Plaintiff Anthony Hamer, who now lives in San Francisco, was Mr. Morrison’s supervisor at Chase and is the successor trustee of Mr. Morrison’s trust and the co-conservator of his estate. Mr. Hamer alleges that the defendants — the JP Morgan Chase, N.A. Long Term Disability Benefit Plan, JP Morgan Chase, N.A. (the plan sponsor), and Prudential Insurance Company of America (the plan administrator) — underpaid the benefits due to Mr. Morrison (because they underreported his base salary at the time of his injury) and failed to from the 1990s). There are six claims for violations of the Employee Retirement Income Security Act (ERISA): two for monetary relief and four alternative claims for equitable relief (such as changed claims-handling procedures).1 The defendants moved to dismiss the alternative claims for equitable relief under Federal Rules of Civil Procedure 12(b)(1) (for lack of standing) and 12(b)(6) (on the ground that the claims are time-barred and foreclosed because monetary relief is available).2 The defendants also moved to transfer the case to the District of Connecticut as a more convenient venue under 28 U.S.C. § 1404(a), on the ground that all relevant events happened there.3 The court grants the motion to transfer venue and declines to decide the motion to dismiss. 1. General Factual Background Mr. Hamer is the Co-Conservator of the Estate of Kenneth S. Morrison and the Successor Trustee of the Kenneth S. Morrison Special Needs Trust.4 Mr. Morrison was a Vice President and Head Options Trader for the “North America USD Interest Rate Derivative Trading Division” at Chase Manhattan Bank (now known as JP Morgan Chase).5 When he was struck by a New York City taxi in 1995, he suffered a traumatic brain injury, triplegia, and aphasia.6 He then lived in skilled-care residential-living facilities until 2003, when his funds ran out and he became a ward of the state of Connecticut and was moved to a nursing home.7 He died in March 2022 because of injuries suffered in the accident.8

1 Compl. – ECF No. 1; Williams Decl. – ECF No. 26-1. Citations refer to material in the Electronic Case File (ECF); pinpoint citations are to the ECF-generated page numbers at the top of documents. 2 Mot. to Dismiss – ECF No. 19. 3 Mot. to Transfer Venue – ECF No. 26. 4 Compl. – ECF No. 1 at 2 (¶ 3). 5 Id. at 4 (¶ 9). 6 Id. (¶ 8). 7 Id. at 6–7 (¶ 15). From 1996 until his death, Mr. Morrison received long-term disability benefits under Chase’s long-term disability benefits plan for employees. The plan entitled him to benefits equal to sixty percent of his monthly base salary as of the date he became disabled.9 His annual pay at the time of his accident consisted of $100,000 in salary, $200,000 in non-discretionary shift differential (owing to his 70–80 hour work weeks), and a $122,000 discretionary incentive bonus (in the year preceding the injury).10 When Chase’s Human Resources Department completed his initial long- term disability benefit application, it listed his monthly base salary as $100,000 only. His monthly benefit under the plan was thus determined to be $5,000. Mr. Hamer alleges that Chase should have included Mr. Morrison’s $200,000 non-discretionary shift differential in his monthly base salary, which would have resulted in a $15,000 monthly benefit.11 In addition, Chase allegedly knew that it miscalculated Mr. Morrison’s benefits as of 2003, when he became a ward of the state. And when Mr. Hamer submitted an administrative claim for the underpayment of benefits in September 2020, and then pursued an administrative appeal, the defendants allegedly mishandled the process, including by not obtaining the operative 1995 plan document or Mr. Morrison’s compensation records.12 2. Facts Relevant to Determining the Most Convenient Venue Mr. Morrison started working for Chase in October 1987.13 At the time of his 1995 injury, he lived in Connecticut and worked in New York City. He continued to live in Connecticut until his death in 2022. He thus received his long-term disability benefits in Connecticut. His medical providers were in Connecticut too.14

9 Id. at 5 (¶ 12). 10 Id. at 4–5 (¶¶ 10–11). 11 Id. at 5–6 (¶¶ 12–14). 12 Id. at 6–9 (¶¶ 15–22). 13 Nese Decl. – ECF No. 26-2 at 2 (¶ 4). “Chase regularly conducts business and has employees, offices, and retail locations in the state of Connecticut.”15 Its principal place of business is in New York City and it is authorized to conduct business in California.16 Chase’s “U.S. Benefits Design & Strategy Manager” is “not aware of Chase performing administrative services for Mr. Morrison’s [long-term disability] claim from within the State of California.”17 Prudential’s headquarters is in Newark, New Jersey.18 It “maintains offices in Connecticut” and “provides insurance to individuals and administers the claims of numerous individuals residing in Connecticut.”19 Mr. Hamer “is informed and believes that Prudential does substantial business in the State of California, providing disability claims administration services to corporations throughout the State of California.”20 Prudential started administering Mr. Morrison’s benefits in 2018.21 During the time it administered the benefits, Prudential exchanged “numerous written communications” with Mr. Morrison, his brother Douglas, and his attorneys, all of whom were located in Connecticut.22 Prudential’s first contact with anyone in California concerning Mr. Morrison’s benefits was when Mr. Hamer first contacted Prudential in March 2019.23 Prudential also processed Mr. Hamer’s administrative claim concerning Mr. Morrison’s benefits, starting in September 2020.24

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Hamer v. JP Morgan Chase Long-term Disability Benefit Plan, (N.D. Cal. 2023).

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