Liston v. Unum Corp. Officer Severance Plan

211 F. Supp. 2d 222, 28 Employee Benefits Cas. (BNA) 2453, 2002 U.S. Dist. LEXIS 13095, 2002 WL 1581085
CourtDistrict Court, D. Maine
DecidedJuly 17, 2002
Docket2:01-cv-00080
StatusPublished
Cited by2 cases

This text of 211 F. Supp. 2d 222 (Liston v. Unum Corp. Officer Severance Plan) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liston v. Unum Corp. Officer Severance Plan, 211 F. Supp. 2d 222, 28 Employee Benefits Cas. (BNA) 2453, 2002 U.S. Dist. LEXIS 13095, 2002 WL 1581085 (D. Me. 2002).

Opinion

ORDER

SINGAL, District Judge.

A former officer of UNUMProvident Corporation sued her former employer, its severance plan, and the plan administrator to recover benefits allegedly due pursuant to the plan’s “Change of Control” provisions. Presently before the Court are Plaintiffs Motion for Additional Discovery (Docket # 35) and Defendants’ Motion for Summary Judgment (Docket #27). For the following reasons, the Court DENIES Plaintiffs Motion and GRANTS Defendants’ Motion.

I. LEGAL STANDARD

The Court will grant a motion for summary judgment if the record discloses that there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c). An issue is “genuine” if it could be resolved in favor of the nonmov-ing party by a rational fact finder drawing reasonable inferences. See, e.g., Ward v. Massachusetts Health Research Inst., 209 F.3d 29, 32 (1st Cir.2000). A fact is “material” if it could affect the outcome of the case under governing law. See, e.g., Hinchey v. NYNEX Corp., 144 F.3d 134, 140 (1st Cir.1998). The following facts are undisputed.

II. FACTS

Plaintiff Catherine Liston is a former officer of UNUM Corporation (“UNUM”), a Delaware corporation. As an officer, she participated in Defendant UNUM Corporation Officer Severance Plan (the “Plan”). UNUM adopted the Plan, in part, to provide a financial safety net for its officers whose jobs were “eliminated” as a result of a “change of control” of the company, such as a merger. The Plan defined “job elimination” arising from a change of control as any of the following:

The significant adverse reduction or alteration in the nature and status (other *224 than title) of the officer’s position, duties or responsibilities immediately prior to or within 365 days of the change in control;
The lack of any re-employment opportunity that would utilize the officer’s professional skills and abilities;
The involuntary termination of the officer for reasons other than performance failure or for cause; [or]
The failure or inability of UNUM Corporation to obtain a satisfactory agreement to assume and agree to honor the terms of this subsection following a change in control.

(See Def.Mot. for Sum.J. at ex. 2, p. 11 (Docket # 27).)

The Plan gave the company the ability to amend its provisions, but required that “[a]ny such amendment, termination, change, elimination, or substitution ... be approved in writing by the Senior Vice President of Human Resources of UNUM Corporation.” (Id. at p. 12.) However, it limited UNUM’s ability to make amendments around the time of a “change of control”:

With respect to the Change of Control provision, such provision may be amended unless such amendment occurs within 12 months of a Change of Control. Further, any other amendment of the Plan that occurs within 12 months of a Change of Control may not operate to reduce any of the benefits that would otherwise be provided under the Change of Control provision absent such an amendment.

(See id.)

The Plan Administrator, Defendant Robert Cornett, oversaw the Plan. Short of making amendments, the Plan granted him “full discretion to make determinations as to the right of any person to a benefit in this Plan ... to construe and interpret the terms of this Plan, decide questions of eligibility, and determine the amount and time of payments of any benefits due_” (See id. at 10.) An Amendment to the Plan adopted February 23, 1999, further gave him explicit “discretionary authority to control and manage the operation and administration of the Plan,” including “construing and interpreting terms” and “making rules and regulations.” (See id. at ex. 2(A).)

On June 30, 1999, UNUM merged with Provident Companies, Inc., creating a new company, Defendant UNUMProvident Corporation. The parties agree that this amounted to a “change of control” as defined by the Plan. UNUMProvident adopted the Plan, and Cornett continued as Plan Administrator. Shortly after the merger, he issued an “Administrative Rule” purporting to define some of the terms in the Plan’s Change of Control provision. In pertinent part, the Administrative Rule read

1. A significant adverse reduction or alteration in the nature and status (other than title) of the officer’s duties or responsibilities means any one of the following:
• a loss of the officer’s position where no opportunity exists to work at either the purchaser ..., the vendor ..., or the survivor of a merger ... other than a project assignment;
• a loss of the officer’s position where the only opportunity to work at either the purchaser ..., the vendor ..., or the survivor of a merger ... involves a position with skills and abilities outside of the skills and abilities the officer utilizes in his or her current position;
• a change in the officer’s position from a manager or director of a major unit to an individual contributor in that unit or another unit; or
*225 • a reduction of more than 10% of the base salary the officer was receiving immediately prior to the change in control.
2. An officer who declines a reemployment opportunity in a comparable position which does not require the officer to relocate to a place of employment more than 50 miles from his or her location immediately prior to the change in control shall not be considered involuntarily terminated by reason of job elimination.
3. An officer who accepts a reemployment opportunity in a comparable position regardless of whether such position requires him or her to relocate to a place of employment more than 50 miles from his or her location immediately prior to the change in control, shall not be considered involuntarily terminated by reason of job elimination.
4. A “comparable position” means a position within the same functional area which requires similar skills and abilities the officer utilizes in his or her current position and does not result in a reduction of more than 10% of the base salary he or she was receiving immediately pri- or to the change in control ...
5. A “reemployment opportunity” means a reemployment opportunity with UNUM ... or the survivor of a merger involving UNUM....

(Id. at ex. 2(D).)

Pre-merger, Liston worked as the “Vice President of LTD Benefits” in UNUM’s Portland, Maine, office.

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Related

Liston v. Unum Corp. Officer Severance Plan
330 F.3d 19 (First Circuit, 2003)
LaMarche v. Metropolitan Life Insurance
236 F. Supp. 2d 34 (D. Maine, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
211 F. Supp. 2d 222, 28 Employee Benefits Cas. (BNA) 2453, 2002 U.S. Dist. LEXIS 13095, 2002 WL 1581085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liston-v-unum-corp-officer-severance-plan-med-2002.