Landro v. Glendenning Motorways, Inc.

625 F.2d 1344
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 7, 1980
DocketNo. 79-1628
StatusPublished
Cited by134 cases

This text of 625 F.2d 1344 (Landro v. Glendenning Motorways, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Landro v. Glendenning Motorways, Inc., 625 F.2d 1344 (8th Cir. 1980).

Opinions

HANSON, District Judge.

This is a suit under the civil enforcement provision of the Employee Retirement Income Security Act of 1974 (ERISA, or the Act), 29 U.S.C. § 1132. The pension plan in question was established by Glendenning Motorways, Inc. (Glendenning), one of the appellants, in 1968.1 All appellees became employees of Glendenning in 1963; before then they had all been employees of Moland Brothers Trucking, Inc. (Moland), which was bought out by Glendenning in 1963. The main issue in the case is whether appel-lees are entitled to credit toward their pensions under the Glendenning pension plan for the years they worked for Moland. In the first of the rulings now on appeal, the district court,2 after two days of trial to the court, held that “under the terms of the plan as interpreted by the Advisory Committee [established by the plan], plaintiffs must be given credit for their Moland years of service,” and ordered appellants to compute appellees’ pension benefits accordingly, making retroactive benefit payments where appropriate. Landro v. Glendenning Motorways, Inc., No. Civ. 3-77-384 (D.Minn., filed May 30, 1979) (judgment entered accordingly the same day). By a separate order filed on July 6,1979, the district court awarded appellees $10,125 in attorney’s fees pursuant to 29 U.S.C. § 1132(g); the second issue before us is whether this award was proper. We affirm both rulings of the district court.

I.

The Glendenning Motorways, Inc. Retirement Plan and Trust (the Plan) was ap[1347]*1347proved by the board of directors of Glen-denning on December 27, 1968. The Plan was not collectively bargained; it was rather a unilateral undertaking by Glendenning, funded by Glendenning, in which only nonunion or “non-contract” employees of the company were eligible to participate.3 Four of the appellees — Landro, Shafranski, Benna and Schultz — were non-contract employees of both Moland and Glendenning; the fifth, Wilson, was a contract employee of Moland and of Glendenning until 1969, when she changed to non-contract status.4

By its terms the Plan was to be administered by an Advisory Committee consisting of two persons designated by the board of directors; the first two members of this Committee were William A. Glendenning and H. V. Stuntebeck, president and secretary of Glendenning Motorways, Inc., respectively.5 The December 27, 1968 resolution of the board of directors approving the Plan also authorized William Glendenning and Stuntebeck “to settle and approve all details in connection with said Plan, exercising their discretion to such extent as they shall deem appropriate in determining any and all questions which may arise in connection with said Plan . . . .”6 The Advisory Committee as such was empowered by the terms of the Plan, “subject to all other terms and provisions of this Trust Agreement,” to “decide all questions arising in the administration, interpretation and application [of the Plan], which decisions shall be binding and conclusive on all parties;” and “[i]n the exercise of the powers conferred upon it, the Advisory Committee shall have the broadest possible discretion . . . .” Art. XI, §§ 3 and 7. The Plan further provided that:

The COMPANY may amend this Trust at any time and from time to time by an instrument in writing executed in the name of the Company by an officer or officers duly authorized to execute such instrument .

It is clear that Glendenning, and William Glendenning and Stuntebeck in particular, had well-nigh absolute control over the terms of the Plan itself and over any questions arising in the administration, interpretation and application of those terms.

Before its complete restatement in 1977 the Plan itself may fairly be said, as the district court found, to have been “silent as to credit for years worked with a predecessor employer, such as Moland.”7 The original version of the Plan provided only that:

ARTICLE VI
RETIREMENT BENEFITS
Section 5. For purposes of this Article VI, a participant hereunder shall receive and be credited with “credited service” as that term is used herein in the amounts as specified in this Section 5 if he shall have been employed by the COMPANY [defined as Glendenning Motorways, Inc.] during any fiscal year for the number of hours as follows:
[1348]*1348Hours of Employment Credited Service
2,000 or more 1 year
More than 1,500 but less than 2,000 % of a year
More than 1,000 but less than 1,500 V4 of a year
More than 500 but less than 1,000 V* of a year

The possibility that hours of employment by a predecessor employer like Moland might be counted as hours of employment by Glendenning was not excluded by this or any other provision of the Plan. On the contrary, as early as March 24, 1969, Stun-tebeck explained to one of the plaintiffs, Oscar Landro, “that we would get — Moland employees would get full credit from the starting date with the initial company or any other company that was purchased by Glendenning.”8 As we shall see, this interpretation of the Plan was consistently followed by Glendenning, at least as to former Moland employees, in both word and deed, until 1977 when it was suddenly claimed all to have been a mistake.

The Plan was amended for the first time on November 21, 1969, by the addition of the following definition as Art. Ill, section 3, subsection (1):

“Years of credited service” or “credited service” shall m'ean that period of an employee’s employment by the Company during which contributions to other deferred compensation, pension or retirement plans (other than life insurance policies) of any kind whatsoever, whether individually or pursuant to a collective bargaining agreement, are not made to or for the benefit of such employee.

This definition obviously did not resolve the uncertainty already noted in the terms of the Plan, as to whether employment by a predecessor employer would count as employment by Glendenning for the purpose of computing years of credited service. On the other hand, the definition does appear to exclude from credited service periods of employment, whether by Glendenning or a predecessor, during which contributions were made on behalf of an employee to another pension plan; and such contributions were made for many years by Moland, under its own plan for non-union employees, on behalf of Landro, Shafranski, Benna and Schultz. However, by the time that the Glendenning Plan came into existence, the Moland plan covering these four appel-lees had been liquidated and its assets distributed; 9 and it was open to the Advisory Committee to interpret the above exclusion in such a way that it did not apply to periods during which contributions were made to a pension plan no longer in existence, and from which employees could therefore expect no future benefits.10

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Bluebook (online)
625 F.2d 1344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landro-v-glendenning-motorways-inc-ca8-1980.