Local 219 Plumbing & Pipe-Fitting Industry Pension Fund v. Buck Consultants, LLC

311 F. App'x 827
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 18, 2009
Docket08-3100
StatusUnpublished
Cited by12 cases

This text of 311 F. App'x 827 (Local 219 Plumbing & Pipe-Fitting Industry Pension Fund v. Buck Consultants, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 219 Plumbing & Pipe-Fitting Industry Pension Fund v. Buck Consultants, LLC, 311 F. App'x 827 (6th Cir. 2009).

Opinion

*828 GRIFFIN, Circuit Judge.

Plaintiffs appeal the district court’s dismissal of their Amended Complaint under Fed.R.Civ.P. 12(c). We affirm. In doing so, we hold that plaintiffs’ professional negligence claims are time barred pursuant to Ohio Rev.Code § 2305.09 and that the district court correctly ruled that Ohio law does not permit the application of the “discovery rule” to plaintiffs’ claims.

I.

Plaintiffs are a joint labor-management employee benefit plan (“plan”), and employee benefit pension fund (“fund”) and the Board of Trustees for the plan and the fund. The purpose of the plan and fund is to provide pension benefits to eligible employees through employer contributions made pursuant to collective bargaining agreements with participating labor organizations.

Defendants Buck Consultants, LLC and Mellon Consultants, Inc. are financial consulting firms hired by plaintiffs to provide actuarial advice. Plaintiffs allege that defendants negligently advised plaintiffs by providing improper evaluations and calculations regarding the liabilities of the plan and fund. Specifically, plaintiffs allege that in 2000, defendants advised plaintiffs that employer contributions to the pension fund were not fully deductible unless certain benefit improvements were made to the plan. Based on this advice, plaintiffs made these improvements to ensure de-ductibility of employer contributions.

According to plaintiffs, during a subsequent review of the plan, conducted by a newly retained actuarial firm in 2005, plaintiffs discovered that defendants’ liability calculations were incorrect and that their advice regarding the deductibility of employer contributions was erroneous.

Plaintiffs filed their complaint on May 31, 2007, seeking compensatory damages for professional negligence, negligent misrepresentation, violation of the Ohio Unfair Trade Practices Act, and breach of contract. Shortly thereafter, defendants filed a Motion for Judgment on the Pleadings pursuant to Rule 12(c) asserting the untimeliness of plaintiffs’ claims.

The district court granted defendants’ motion, ruling that each of plaintiffs’ claims were time barred under Ohio Rev. Code § 2305.09 and rejecting plaintiffs’ arguments that the “discovery rule” should toll § 2305.09’s four-year limitations period. Plaintiffs timely appealed.

After the parties completed their appellate briefing, plaintiffs moved this court to seek certification of the following question to the Supreme Court of Ohio:

When does the four-year statute of limitation under Ohio Rev.Code § 2305.09 begin to run in causes of action for actuarial negligence, actuarial negligent misrepresentation, violations by an actuary of the Ohio Unfair Trade Practices Act, and breach of contract by an actuary?

II.

We review the district court’s dismissal of plaintiffs’ Amended Complaint under Fed.R.Civ.P. 12(c) using the same de novo standard of review we employ for a motion to dismiss under Fed.R.Civ.P. 12(b)(6). Tucker v. Middleburg-Legacy Place, 539 F.3d 545, 549 (6th Cir.2008) (citing Sensations, Inc. v. City of Grand Rapids, 526 F.3d 291, 295 (6th Cir.2008)). “For purposes of a motion for judgment on the pleadings, all well-pleaded material allegations of the pleadings of the opposing party must be taken as true, and the motion may be granted only if the moving party is nevertheless clearly entitled to judgment.” Tucker, 539 F.3d at 549 (citing JPMorgan Chase Bank, N.A. v. Winget, 510 F.3d 577, 581 (6th Cir.2007) (internal citation and quotation omitted)).

*829 Plaintiffs present a single issue on appeal — whether the district court erred by declining to apply the “discovery rule” to toll the four-year limitations period applicable to plaintiffs’ actuarial negligence claims. The parties agree that Ohio law applies to this case. Plaintiffs concede that § 2305.09’s four-year limitations period governs their claims and admit that defendants’ erroneous advice occurred in 2000, seven years before they filed their complaint. Nevertheless, plaintiffs argue that the district court erred when it refused to apply the “discovery rule” to plaintiffs’ claims because the cognizable event, namely, the exposure of defendants’ alleged negligent advice, occurred in 2005.

“Ordinarily, a cause of action accrues and the statute of limitations begins to run at the time the wrongful act was committed.” Collins v. Sotka, 81 Ohio St.3d 506, 692 N.E.2d 581, 582 (1998). “However, under the discovery rule, which is an exception to the general rule, a cause of action accrues when the plaintiff discovers, or in the exercise of reasonable care should have discovered, that he or she was injured by the wrongful conduct of the defendant.” Id. “In essence, the running of the limitations period is delayed until triggered by a ‘cognizable event’ that alerts the plaintiff that he or she was injured by the defendant.” Id. “It is unnecessary for a plaintiff to be aware of the full extent of damages before there is a cognizable event.” Rosendale v. Ohio Dep’t of Transp., No. 08AP-378, 2008 WL 4368580, at *2 (Ohio Ct.App. Sept. 25, 2008). In the absence of a legislative definition, “it is left to the judiciary to determine when a cause of action a[rises].” O’Stricker v. Jim Walter Corp., 4 Ohio St.3d 84, 447 N.E.2d 727, 730 (1983) (citation omitted).

Ohio Rev.Code § 2305.09 provides:

Four years; certain torts:
Except as provided for in division (C) of this section, an action for any of the following causes shall be brought within four years after the cause thereof accrued:
(A) For trespassing upon real property;
(B) For the recovery of personal property, or for taking or detaining it;
(C) For relief on the ground of fraud, except when the cause of action is a violation of section 2913.49 of the Revised Code, in which case the action shall be brought within five years after the cause thereof accrued;

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Bluebook (online)
311 F. App'x 827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-219-plumbing-pipe-fitting-industry-pension-fund-v-buck-ca6-2009.