Hensley v. United Mine Workers Health & Retirement Funds

596 F. Supp. 8, 1984 U.S. Dist. LEXIS 20676
CourtDistrict Court, E.D. Kentucky
DecidedJanuary 6, 1984
DocketCiv. A. No. 77-187
StatusPublished

This text of 596 F. Supp. 8 (Hensley v. United Mine Workers Health & Retirement Funds) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hensley v. United Mine Workers Health & Retirement Funds, 596 F. Supp. 8, 1984 U.S. Dist. LEXIS 20676 (E.D. Ky. 1984).

Opinion

MOYNAHAN, Chief Judge.

This case involves a disabled miner’s dispute over the eligibility standards applied to award health and pension benefits under the 1950 UMWA Benefit Plan and Trust, and the 1950 UMWA Pension Plan. These union welfare funds are irrevocable trusts established through collective bargaining by the National Bituminous Coal Wage Agreement, under the authority of Section 302(c)(5) of the Labor Management Relations Act, 29 U.S.C. § 186(c)(5). This Act requires the Trustees of the Funds to administer the trust for the “sole and exclusive benefit of the employees.” The Funds are maintained by per tonnage contributions to the trusts from employers signatory to the Bituminous Coal Wage Agreement.

The parties have submitted the case for decision on cross motions for summary judgment. The pleadings and affidavits establish the following material facts.

Plaintiff Clifford Hensley worked as a UMW coal miner until he became disabled due to pneumoconiosis. All of his employers were signatory to the National Bituminous Coal Wage Agreement and plaintiff held positions that were “classified” for UMWA pension purposes. However, during the final nine months of his working life (March, 1970 — January, 1971), Hensley had a “non-classified” job as a Section Foreman for Westmoreland Coal Co., a signatory employer.

Based on the occupational disability caused by Black Lung, Hensley was awarded Workmen’s Compensation for 1971 and 1972 by the State of Virginia. Hensley also received Social Security Disability in 1971 and Federal Black Lung benefits beginning in December, 1970.

On December 17, 1973, the plaintiff applied for the health care benefits granted to disabled miners under the UMWA 1950 Benefit Plan & Trust (hereinafter the Trust). To be eligible a claimant must: (a) Be under 55; (b) Become disabled before December 6, 1974; (c) Be eligible for Social Security Disability Insurance; and (d) Have 20 years of classified credited service, of which 10 years was with a signatory employer. Article II C(5) of the Trust. The parties have agreed by stipulation that Hensley meets all requirements, except the provision requiring 20 years of credited service. Consequently, the Trustees denied health benefits to Hensley.

Having exhausted all intra-Union remedies, Hensley seeks judicial review under the jurisdiction granted by the Labor Management Relations Act, 29 U.S.C. § 185, and other statutes.

Plaintiff complains that the Trustees denial of eligibility was- erroneous and should be set aside as arbitrary and capricious and as a breach of the Trustees fiduciary duty; that the Trustees should be enjoined from applying the eligibility rules incorrectly and a declaration of plaintiff’s eligibility be issued; that even if the Trustees correctly applied the eligibility requirements, then the Court should invalidate the disputed requirement as violative of the Labor Man[10]*10agement Relations Act and the Employee Retirement Income Security Act. Hensley also asks for attorney fees, costs, and other appropriate relief.

The decisive issue in the ease is whether the Trustees correctly determined that the plaintiff lacked the requisite 20 years of credited service. Credited service is calculated according to Article IV of the 1950 UMWA Pension Plan (hereinafter the Plan). Failure to meet the eligibility standards for health care benefits will ultimately defeat any claim plaintiff has to UMWA pension benefits. The defendant Trustees have stipulated that in accordance with Article IV B(l) of the Plan, the plaintiff has 18V4 years of credited service with a signatory employer. From this starting point, the plaintiff makes two claims for additional credited service.

First, an additional one quarter year is claimed for both 1946 and 1947. These two quarters credit were denied due to inadequate proof of hours or earnings. Another quarter year was claimed for 1960, but denied based on earnings records obtained from the Social Security Administration. Plaintiff argues that determination of these disputed credits is a factual issue, and as such, inappropriate for summary judgment. The defendant asserts that the court should uphold the Trustees denial of these credits, as a matter of law, if the Trustees decision was supported by substantial evidence. The defendants submitted evidence in support of their decision, but the plaintiff has rested on the allegations in his pleadings. Nevertheless, the issue is largely inconsequential, since granting the three quarters would increase the plaintiffs credited service to only 19 years.

Most important is plaintiffs second assertion that he is entitled to a year of service credit for each year he received Workmen’s Compensation. Recognition of credited service for Workmen’s Compensation awards is provided by two separate Plan provisions, each containing specific conditions. The dispute is over which provision applies to plaintiff.

Plaintiff contends that he is entitled to two years of non-signatory credit under Article IV A(3) which provides:

“ARTICLE IV — CREDITED SERVICE
A. Nonsignatory Service
Subject to the limitations in section C of this Article IV, credited service is a period during which the participant meets the requirements of subparagraphs (1), (2), (3), (4), or (5) below. Any credited service shall be nonsignatory service unless it qualifies as signatory service pursuant to Article IV(B) hereof.
(3) A participant shall receive credit for a year of service for any year in which he received state workmen’s compensation payments pursuant to an award as a result of an occupational disease or injury sustained in the mine while regularly employed in a classified job under the bituminous coal wage agreement then in effect, provided, in the case of occupational disease, the participant had been so employed by an Employer signatory to the Wage Agreement then in effect for at least ten (10) years after May 28, 1946. Credit shall be given up to a maximum of four (4) years service credit from date of injury, or from the date of last employment in case of occupational disease provided the participant did not work regularly during the compensable period.”

Defendants argue that since Hensley worked for a signatory employer any service credit date must be governed by Article IV B(2) on signatory service.

“B. Signatory Service

Credited signatory service is:

(1) Service as defined in paragraph A(3) hereof during which a participant worked, after May 28, 1946, as an employee in a classified job for an Employer signatory to the bituminous coal wage agreement then in effect.
(2) Service as defined in paragraph A(3) hereof during which a participant received state workmen’s compensation payments if such payments are pursuant [11]*11to an award as a result of an occupational disease or injury awarded after May 28, 1946, and if the participant was last regularly employed prior to such service as an employee in a classified job for an Employer signatory to the bituminous coal wage agreement then in effect.”

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596 F. Supp. 8, 1984 U.S. Dist. LEXIS 20676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hensley-v-united-mine-workers-health-retirement-funds-kyed-1984.