Letson v. Liberty Mutual Insurance

523 F. Supp. 1221, 9 Fed. R. Serv. 746, 2 Employee Benefits Cas. (BNA) 1970, 108 L.R.R.M. (BNA) 3067, 1981 U.S. Dist. LEXIS 15132
District Court, N.D. Georgia·Decided October 6, 1981·No. Civ. A. C79-113A·Published·Cited by 13 cases

Opinion

ORDER OF COURT

HORACE T. WARD, District Judge.

This action was brought by plaintiff pursuant to the Veterans’ Reemployment Rights Act, 38 U.S.C. §§ 2021-2026, in order to have his period of military service included in his credited service for pension benefits which began upon retirement on February 1, 1979. The case is presently before the court on defendant’s cross-motion for summary judgment, defendant’s motion to strike the affidavit of Austin K. Letson, and plaintiff’s superseding motion for summary judgment.

The plaintiff was employed by defendant from February 18,1942 until shortly before April 2, 1943, on which date he entered *1224 active duty with the U.S. Army. Plaintiff was placed on terminal leave on April 20, 1946, and was honorably discharged effective May 7, 1946. Plaintiff returned to defendant’s employ on May 1, 1946, and remained until November 7, 1978. His retirement was officially effective on February 1, 1979.

Between August 1, 1934 and May 31, 1973, defendant’s pension plan required eligible employees to authorize deductions from salary checks. On February 18, 1943, prior to his leaving to enter military service, plaintiff became eligible to join the plan. He had completed one year of employment, he was making over $1,400.00 per year. Formal join-up dates were February 1 or August 1 after reaching eligibility. Plaintiff entered the service shortly before April 2, 1943, and as of that date he had not elected to become a member of the plan. Plaintiff elected to join the plan on August 1, 1946, the first available date upon his return from service. Plaintiff’s accredited time for pension benefit purposes now dates from August 1, 1946, and he seeks to have his credited service date from his first available sign-up date on August 1, 1943.

I. Defendant’s Motion for Summary Judgment on the Issue of Statute of Limitations

Defendant’s motion first relies upon the application of the Georgia statute of limitations to bar plaintiff’s claim. At the time that plaintiff was reemployed on May 1, 1946, the VRRA contained no federal statute of limitations and some courts applied the most analogous limitation period prescribed by the state where the controversy originated. See generally cases cited note 3 infra. At the time that plaintiff retired on February 1, 1979, Section 2022 of the VRRA had been amended to provide that “[n]o state statute of limitations shall apply to any proceedings under this chapter.” If this 1974 amendment applies retroactively, then the defense of the statute of limitations would be abolished regardless of whether it had already run. Since the court finds that the amendment does apply retroactively, it is not at this point necessary to discuss when the cause of action arose. 1

Thirteen courts have been faced with the issue, and nine courts have entered written decisions ruling that the 1974 amendment applies retroactively to a cause of action which arose prior to December 3, 1974. 2 Banks v. U.S. Steel Corp., 89 CCH Labor Cases ¶ 12,268 (N.D.Ind.1980); Congrove v. St. Louis-San Francisco Ry. Co., 87 CCH Labor Cases ¶ 11,815 (W.D.Mo.1979); Scott v. Atchison, Topeka & Santa Fe Ry., 78 CCH Labor Cases ¶ 11,291 (C.D.Calif.1976); Watkins v. Consumers Power Co., 78 CCH Labor Cases ¶ 11,449 (E.D.Mich.1976); Coles v. Sunshine Biscuits, Inc., 80 CCH Labor Cases ¶ 11,860 (E.D.N.Y.1976); Bunner v. Eaton Corp., 81 CCH Labor Cases ¶ 13,050 (N.D.Ohio 1976); Hirschberg v. Braniff Airways, Inc., 404 F.Supp. 869 (E.D.N.Y.1975); Farrell v. Chesapeake & Ohio Ry. Co., 77 CCH Labor Cases ¶ 11,157 (W.D.Pa.1975); Armstrong v. Baker, 394 F.Supp. 1380, 1385 (N.D.W.Va.1975). The case of Hirschberg v. Braniff Airways, supra, represents this line of authority. The court concluded from the legislative history of the amendments to the Act that they constituted a clarification of the law rather than a change. 3 The Report of the Senate Corn *1225 mittee on Veterans’ Affairs notes that a purpose of the amendment was to have a policy of uniform availability of enforcement rights for returned veterans throughout the country. S.Rep.No. 93-907, 93rd Cong., 2d Sess., at 111. The statute applies by its terms to “any proceedings” under the Act, and thus there is no language to impede retroactive application. Such an application clearly advances Congress’ expressed purpose. Accordingly, defendant’s motion for summary judgment on the issue of Statute of Limitations is denied.

II. Defendant’s Motion for Summary Judgment on the Issue of Laches

Defendant’s motion also relies upon laches as an affirmative defense to bar plaintiff’s claim. Two criteria must be satisfied before the defense will be upheld: a showing of inexcusable delay in asserting a claim, and a showing that such delay caused undue prejudice to the party against whom the claim is asserted. Law v. Boyal Palm Beach Colony, Inc., 578 F.2d 98, 101 (5th Cir. 1978). Defendant supports the argument that there was an inexcusable delay by maintaining that Mr. Letson’s cause of action arose at the date of Liberty’s decision in 1946 not to credit the pension calculation with years of military service, or, at the latest, in 1947 when Mr. Letson became aware of that decision. However, this court concludes that the ease of Davis v. Alabama Power Co., 383 F.Supp. 880, 893 (N.D.Ala.1974), aff’d., 542 F.2d 650 (5th Cir. 1976), cert. den. on particular point, 429 U.S. 1037, 97 S.Ct. 731, 50 L.Ed.2d 748 (1977), decides this issue. Davis holds that the claim for pension benefits accrues upon “the [veteran’s] retirement date” when he seeks to require that time spent in the military be credited by an employer to compute those pension benefits. 4 Since Mr. Letson’s retirement was effective on February 1, 1977, and he filed suit on January 19, 1979, there has been no inexcusable delay. 5

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Letson v. Liberty Mutual Insurance, 523 F. Supp. 1221, 9 Fed. R. Serv. 746, 2 Employee Benefits Cas. (BNA) 1970, 108 L.R.R.M. (BNA) 3067, 1981 U.S. Dist. LEXIS 15132 (N.D. Ga. 1981).

523 F. Supp. 1221 (Letson v. Liberty Mutual Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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