Karpiel v. Ogg, Cordes, Murphy & Ignelzi, LLP

297 F. App'x 192
Court of Appeals for the Third Circuit·Decided October 28, 2008·No. 07-3379·Unpublished·Cited by 7 cases

Opinion

OPINION

PER CURIAM.

Helene Karpiel, proceeding pro se, appeals from the District Court’s entry of summary judgment in favor of Appellees. For the reasons that follow, we will vacate the judgment of the District Court and remand for further proceedings.

*193 On April 2, 2004, Karpiel initiated the underlying lawsuit in the United States District Court for the Western District of Pennsylvania. In short order, Karpiel filed a complaint, an amended complaint, a second amended complaint, and a document entitled “amended complaint with some attachments added.” Appellees moved to dismiss for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1). The District Court denied their motion, holding that Karpiel had sufficiently pled that Appel-lees had refused to allow her to roll over, transfer or withdraw her funds held in them 401k plan and, therefore, had stated a claim for enforcement under the Employment Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq.

As explained by the District Court, there then ensued a protracted period of discovery during which Karpiel had to be ordered to attend her deposition. Approximately two years after the District Court denied Appellees’ motion to dismiss, they moved for summary judgment, arguing that Karpiel failed to exhaust her administrative remedies under their employee benefit plan (“the Plan”). The Court permitted Karpiel until July 5, 2007 to file a response, but she did not do so. On July 9, 2007, the District Court entered an opinion and order granting Appellees’ motion for summary judgment based on Ap-pellees’ assertion that Karpiel failed to exhaust her administrative remedies, and declining to exercise supplemental jurisdiction over what appears to be a state law unlawful termination claim. Karpiel timely appealed.

We have jurisdiction pursuant to 28 U.S.C. § 1291. We exercise plenary review over the District Court’s entry of summary judgment, viewing the underlying facts and all reasonable inferences therefrom in the light most favorable to the party opposing the summary judgment motion. Pennsylvania Coal Ass’n v. Babbitt, 63 F.3d 231, 235 (3d Cir.1995). We have held that “it is inappropriate to grant summary judgment in favor of a moving party who bears the burden of proof at trial unless a reasonable juror would be compelled to find its way on the facts needed to rule in its favor on the law.” See El v. Southeastern Pennsylvania Transp. Auth., 479 F.3d 232, 238 (3d Cir. 2007).

ERISA itself does not contain an exhaustion requirement, but it does require covered benefit plans to provide administrative remedies for persons whose claims for benefits have been denied. See 29 U.S.C. § 1133; see also Metropolitan, Life Ins. Co. v. Price, 501 F.3d 271, 279 (3d Cir.2007) (describing the ERISA exhaustion requirement as “a judicial innovation with an eye toward ‘sound policy’ ”). Accordingly, courts have long held that an ERISA plan participant must exhaust the administrative remedies available under the plan before seeking relief in federal court unless the participant can demonstrate that resort to the plan remedies would be futile. See Harrow v. Prudential Ins. Co. of Am., 279 F.3d 244, 249-51 (3d Cir.2002); Weldon v. Kraft, 896 F.2d 793, 800 (3d Cir.1990).

Exhaustion is an affirmative defense and, accordingly, the burden is on Appellees to demonstrate that Karpiel failed to exhaust her administrative remedies under the plan. See Price, 501 F.3d at 280 (exhaustion requirement in ERISA enforcement action is “a nonjurisdictional affirmative defense”); Jakimas v. Hoffmann-La Roche, Inc., 485 F.3d 770, 782 (3d Cir. 2007) (summary judgment properly denied where moving party failed to meet burden of proving affirmative defense). In their summary judgment brief, Appellees state *194 that “there is no record evidence that Plaintiff took the appropriate steps to exhaust her administrative remedies, as those remedies would have been defined in the plan documents.” (Ae. Br., at 2.) Ap-pellees seem to rely on 29 U.S.C. § 1024(b)(4), which provides:

The administrator shall, upon written request of any participant or beneficiary, furnish a copy of the latest updated summary plan description, and the latest annual report, any terminal report, the bargaining agreement, trust agreement, contract, or other instruments under which the plan is established or operated.

Appellees maintain that, because there is no • evidence in the record that Karpiel submitted a “written request” as required by this section, she failed to exhaust her remedies. It is not clear, and Appellees do not cite any support for the proposition, that this section applies to a plan participant seeking to roll over, transfer or withdraw the funds held in her 401k account, as Karpiel alleges she seeks to do here.

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Karpiel v. Ogg, Cordes, Murphy & Ignelzi, LLP, 297 F. App'x 192 (3d Cir. 2008).

297 F. App'x 192 (Karpiel v. Ogg, Cordes, Murphy & Ignelzi, LLP) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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