John Clayton v. ConocoPhillips Company

722 F.3d 279, 2013 WL 3357574
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 4, 2013
Docket12-20102
StatusPublished
Cited by23 cases

This text of 722 F.3d 279 (John Clayton v. ConocoPhillips Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Clayton v. ConocoPhillips Company, 722 F.3d 279, 2013 WL 3357574 (5th Cir. 2013).

Opinion

CARL E. STEWART, Chief Judge:

Plaintiff-Appellant, John D. Clayton brought suit against Defendants-Appellees, ConocoPhillips Co. (“Conoco”); Wachovia Bank, N.A. (“Wachovia” or the “Trustee”); James D. McMorran; and The Amended and Restated Burlington Resources, Inc. Employee Change in Control Severance Plan (the “Plan”). 1

On July 2, 2010, the district court granted summary judgment to Conoco, Wachovia, and McMorran. On January 20, 2012, the district court granted summary judgment to the Plan and entered final judgment against Clayton.

For the reasons provided below, we AFFIRM the district court’s final judgment in full.

I.BACKGROUND

A. Facts

1. The Pre-Merger Period

In 1986, Clayton began work as a staff petroleum engineer for Meridian Oil Inc., a corporate predecessor to Burlington Resources, Inc. (“Burlington”). On March 31, 2006, Burlington merged into Conoco, a significantly larger company. By the time of the merger, Clayton had risen within Burlington to become its company-wide Director of Worldwide Acquisitions and Divestitures (“A & D”).

2. The Plan

Burlington enacted a severance plan, which would provide benefits to Burlington employees who experienced a termination of employment, caused by a change in corporate control, within two years of that change. See Plan § 4.1(a) (explaining the “Right to Severance Benefit”). The Plan covered resignation for “Good Reason,” as defined by Plan § 2.12. 2 Wachovia served as Trustee of the Plan. Upon completion of the merger, Conoco assumed responsibility for Burlington’s obligations under the Plan.

3. The Offer Letter and Waiver

For approximately three months preceding consummation of the merger, Clayton participated as a member of the Conoco/Burlington “Integration Leadership” team. In that role, he specifically worked on future business development strategy for the soon-to-be integrated company.

*284 On March 14, 2006, Conoco presented Clayton a written offer (the “Offer Letter”) to become its post-merger “Mgr. of A & D” within its “U.S. Lower 48, Exploration & Business Development” Organization. Other than providing his title and department, the Offer Letter did not provide a specific, written job description.

Conoco’s offer was contingent upon Clayton’s execution of a written waiver and release (the “Waiver”) to any entitlement to severance benefits under the Plan “as a result of’ the merger. Conoco included the Waiver as the final page of the Offer Letter. The Waiver did not extend to Clayton’s entitlement to severance benefits under the Plan due to specified events or conditions “in the future.”

Clayton executed the Waiver six days after receiving it, on March 20, 2006. At the time, his severance benefits under the Plan were worth approximately $600,000.

4. The Post-Merger Period

Shortly after the merger, Conoco reassigned Clayton to the role of “Manager of Business Development.” The key difference between “A & D” and “Business Development” is that the former concerns properties already yielding petroleum output, while the latter concerns properties that remain in the exploratory or developmental stage.

Thus, whereas in his prior role, Clayton directed all acquisitions and divestitures of petroleum-producing properties throughout the world for a smaller company; in his new role, Clayton managed one department’s acquisitions and divestitures of properties in the developmental or exploratory stage within the continental United States for a much larger company. This metamorphosis is at the heart of the parties’ dispute.

B. Proceedings

1. Clayton’s August 2006 Claim to Conoco Human Resources

Clayton became disgruntled with his new, post-merger role as early as June 2006. He filed an initial claim on August 8, 2006, seeking severance benefits for resignation for “Good Reason” pursuant to Plan § 2.12(e). 3 McMorran denied Clayton’s claim on September 25, 2006 because Clayton had not resigned his position with Conoco.

Notwithstanding his August 2006 claim, Clayton continued working at Conoco until March 2008. Clayton gave notice of his resignation on March 4, 2008, and officially terminated his employment on March 18, 2008.

2. Clayton’s March 2008 Claim to the Trustee

On March 4, 2008, the same day he gave notice of his resignation, and less than one month before the two-year deadline for filing a timely claim, Clayton filed a renewed claim for severance benefits under Plan § 2.12(e).

In a written decision issued July 14, 2008, the Trustee denied Clayton’s renewed claim. Comparing the job Clayton actually performed after the merger with the job Clayton accepted in the Offer Letter, the Trustee determined that Clayton had not experienced a substantial reduction in his job position or responsibilities. Thus, Clayton had not resigned for “Good Reason.”

*285 3. Clayton’s State Court Claim and Conoco’s Removal to Federal Court

Clayton filed suit in Texas state court in October 2008, asserting claims against Conoco for breach of the Offer Letter and breach of its obligations under the Plan.

Conoco removed on “complete preemption” grounds. Specifically, Conoco argued that Clayton’s claim was “necessarily federal in nature” in light of the civil enforcement provision of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1132(a)(1)(B), and therefore was “completely pre-empted.” See Aetna Health Inc. v. Davila, 542 U.S. 200, 220-21, 124 S.Ct. 2488, 159 L.Ed.2d 312 (2004); Arana v. Ochsner Health Plan, 338 F.3d 433, 439-40 (5th Cir.2003) (en banc).

Clayton moved for remand, noting that ERISA only covers plans that require “an ongoing administrative program to meet the employer’s obligation.” See Fort Halifax Packing Co. v. Coyne, 482 U.S. 1, 11, 107 S.Ct. 2211, 96 L.Ed.2d 1 (1987). He argued that, under this Circuit’s precedent, the Plan does not require “an ongoing administrative program” and, therefore, that ERISA does not cover the Plan.

The district court denied Clayton’s motion on March 23, 2009, holding that the Plan does require “an ongoing administrative program.” Thus, the district court determined that ERISA preempted Clayton’s claims against Conoco.

Clayton proceeded to amend his complaint twice. He added an ERISA civil enforcement claim under Plan § 2.12(e), and added the Plan, Wachovia, and McMorran as additional defendants.

4.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Spears v. McCraw
Fifth Circuit, 2021
Atkins v. CB&I
991 F.3d 667 (Fifth Circuit, 2021)
Dozier v. GoAuto Insurance Co
W.D. Louisiana, 2020
Atkins v. C B & I L L C
W.D. Louisiana, 2019
Jeffrey Westbrook v. David Doughty
706 F. App'x 182 (Fifth Circuit, 2017)
Maria S. ex rel. E.H.F. v. Doe
267 F. Supp. 3d 923 (S.D. Texas, 2017)
Theriot v. Transamerica Life Ins. Co.
354 F. Supp. 3d 713 (E.D. Texas, 2017)
Peters v. Reliance Standard Life Insurance Co.
238 F. Supp. 3d 905 (S.D. Texas, 2017)
Mark Gomez v. Ericsson, Inc.
828 F.3d 367 (Fifth Circuit, 2016)
Trang v. Taylor Bean & Whitaker Mortgage Corp.
600 F. App'x 191 (Fifth Circuit, 2015)
Perez v. Bruister
54 F. Supp. 3d 629 (S.D. Mississippi, 2014)
Ralser v. Winn Dixie Stores, Inc.
35 F. Supp. 3d 799 (E.D. Louisiana, 2014)
Brenda Tolbert v. RBC Capital Markets Corp.
758 F.3d 619 (Fifth Circuit, 2014)
Shannan Rojas v. Wells Fargo Bank, N.A.
571 F. App'x 274 (Fifth Circuit, 2014)
Linda Taylor v. Texas Southern University
569 F. App'x 193 (Fifth Circuit, 2014)
Cantrell v. Briggs & Veselka Co.
728 F.3d 444 (Fifth Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
722 F.3d 279, 2013 WL 3357574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-clayton-v-conocophillips-company-ca5-2013.