Millsap v. McDonell Douglas Corp.

368 F.3d 1246, 32 Employee Benefits Cas. (BNA) 2586, 2004 U.S. App. LEXIS 10092, 2004 WL 1127189
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 21, 2004
Docket03-5124
StatusPublished
Cited by38 cases

This text of 368 F.3d 1246 (Millsap v. McDonell Douglas Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Millsap v. McDonell Douglas Corp., 368 F.3d 1246, 32 Employee Benefits Cas. (BNA) 2586, 2004 U.S. App. LEXIS 10092, 2004 WL 1127189 (10th Cir. 2004).

Opinions

BALDOCK, Circuit Judge.

Section 510 of the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001-1461 (ERISA), proscribes interference with a participant’s rights under a qualified benefit plan. Section 502(a)(3) of ERISA provides the plan participant with his exclusive remedies for a § 510 violation. Under § 502(a)(3), the participant may bring a civil action to (1) enjoin any act or practice which violates any provision of Title I of ERISA or the terms of the plan, or (2) obtain other appropriate equitable relief to redress such violations or enforce any provisions of Title I of ERISA or the terms of the plan. 29 U.S.C. § 1132(a)(3). We granted Defendant McDonnell Douglas Corporation’s petition for interlocutory appeal in this class action to decide a controlling issue of law involving § 502(a)(3). See 28 U.S.C. § 1292(b); Fed. R.App. P. 5(a). The par[1248]*1248ties stipulated to and the district court certified the following issue for review:

[Wjhether, in this ERISA § 510 case and as a result of Great-West Life & Annuity Ins. Co. v. Knudson, 534 U.S. 204, 122 S.Ct. 708, 151 L.Ed.2d 635 (2002), backpay (and, as a result, any other damages based upon backpay) are available as “appropriate equitable relief’ to the class members pursuant to ERISA § 502(a)(3).

The district court answered yes and denied Defendant’s motion seeking to preclude backpay as a potential remedy for the class. Reviewing the district court’s resolution of the question of law de novo, we answer no and reverse.

I.

The facts are undisputed. Defendant manufactured and assembled military aircraft at a plant in Tulsa, Oklahoma. Defendant’s employees at the plant participated in pension and/or health care plans qualified under ERISA. Defendant announced the closing of the Tulsa plant in December 1993. Defendant subsequently laid off all employees at the Tulsa plant. The Plaintiff class consists of 1,074 of those employees. Plaintiffs filed this action in 1994 alleging Defendant violated § 510 of ERISA. Section 510 provides in relevant part: “It shall be unlawful for any person to discharge ... or discriminate against a participant or beneficiary ... for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan [or Title I of ERISA.]” 29 U.S.C. § 1140. According to the complaint, Defendant closed the Tulsa plant to prevent Plaintiffs from attaining eligibility for benefits under their pension and health care plans. Plaintiffs requested damages, an order requiring Defendant to make restitution to their benefit plans, and any other equitable or remedial relief.1

The district court bifurcated the case into liability and remedial phases. The case proceeded to trial on the issue of Defendant’s liability under ERISA § 510. After a ten day bench trial, the district court concluded Defendant violated § 510. The court entered a thorough published order pursuant to Fed.R.Civ.P. 52(a) reciting its findings and conclusions. Millsap v. McDonnell-Douglas Corp., 162 F.Supp.2d 1262 (N.D.Okla.2001). We need not repeat all those findings and conclusions here.2 For purposes of this appeal, [1249]*1249the district court’s conclusion Defendant violated § 510 in closing the Tulsa plant is undisputed.

In the remedial phase, Plaintiffs argued Defendant’s violation of § 510 entitled the class to lost benefits, backpay, and reinstatement (or front pay in lieu of reinstatement), among other things. Defendant disagreed and filed motions to preclude an award of reinstatement, front pay, and backpay under ERISA. The district court denied Defendant’s motion on the availability of backpay, but granted Defendant’s motion to preclude reinstatement and front pay. Millsap v. McDonnell Douglas Corp., No. 94-CV-633-H, 2002 WL 31386076 (N.D.Okla. Sept.25, 2002) (unpublished disposition). The court reasoned the circumstances of this case made reinstatement impossible and front pay inappropriate because the court could not conclude that but for Defendant’s discriminatory conduct the Tulsa plant would still be open. The district court held, however, Plaintiffs could recover backpay because the award constituted “equitable relief’ under ERISA § 502(a)(3). The court reasoned backpay constituted “equitable restitution” or alternatively could be awarded because Plaintiffs sought backpay in conjunction with lost pension benefits, lost vacation pay, lost insurance, and reinstatement or front pay.

The parties subsequently entered into a “Stipulation of Settlement.” The settlement compensates Plaintiffs in the amount of $36 million for their lost pension and health care benefits. The settlement stipulation requires judicial resolution of the availability of backpay under ERISA § 502(a)(3). The district court approved the settlement, see Fed.R.Civ.P. 23(e), and certified the controlling question of law for appeal. See 28 U.S.C. § 1292(b). We granted the parties permission to appeal on the narrow issue certified.3

II.

ERISA regulates employee pension and welfare benefit plans. See 29 U.S.C. §§ 1002(l)-(2), 1003(a); Pilot Life Ins. Co. [1250]*1250v. Dedeaux, 481 U.S. 41, 44, 107 S.Ct. 1549, 95 L.Ed.2d 39 (1987). Congress designed ERISA “to promote the interests of employees and their beneficiaries in employee benefit plans.” Ingersoll-Rand Co. v. McClendon, 498 U.S. 133, 137, 111 S.Ct. 478, 112 L.Ed.2d 474 (1990) (internal quotations and citation omitted). ERISA’s “complex and detailed” statutory scheme “resolved innumerable disputes between powerful competing interests — not all in favor of potential plaintiffs.” Mertens v. Hewitt Assoc., 508 U.S. 248, 262, 113 S.Ct. 2063, 124 L.Ed.2d 161 (1993). Federal courts interpreting ERISA must take into account those competing interests, “such as Congress’ desire to offer employees enhanced protection for their benefits, on the one hand, and, on the other, its desire not to create a system that is so complex that administrative costs, or litigation expenses, unduly discourage employers from offering welfare benefit plans in the first place.” Vanity Corp. v. Howe, 516 U.S. 489, 497, 116 S.Ct. 1065, 134 L.Ed.2d 130 (1996); see also Lockheed Corp. v. Spink, 517 U.S. 882, 887, 116 S.Ct.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Skedco, Inc. v. Strategic Operations, Inc.
685 F. App'x 956 (Federal Circuit, 2017)
Scott Teutscher v. Riverside Sheriffs Assn
835 F.3d 936 (Ninth Circuit, 2016)
Jerry D. Walker v. Jaci S. Walker
2013 WY 132 (Wyoming Supreme Court, 2013)
Elm Ridge Exploration Company v. Engle
721 F.3d 1199 (Tenth Circuit, 2013)
Federal Trade Commission v. Randall L. Leshin
719 F.3d 1227 (Eleventh Circuit, 2013)
Altshuler v. Animal Hospitals, Ltd.
901 F. Supp. 2d 269 (D. Massachusetts, 2012)
Caldwell v. PNC Financial Services Group, Inc.
835 F. Supp. 2d 510 (S.D. Ohio, 2011)
Olick v. Kearney (In Re Olick)
422 B.R. 507 (E.D. Pennsylvania, 2009)
SUNBEAM PRODUCTS, INC. v. Homedics, Inc.
670 F. Supp. 2d 873 (W.D. Wisconsin, 2009)
Phelan v. Wyoming Associated Builders
574 F.3d 1250 (Tenth Circuit, 2009)
Crawford v. TRW Automotive U.S. LLC
560 F.3d 607 (Sixth Circuit, 2009)
Jensen v. Solvay Chemicals, Inc.
520 F. Supp. 2d 1349 (D. Wyoming, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
368 F.3d 1246, 32 Employee Benefits Cas. (BNA) 2586, 2004 U.S. App. LEXIS 10092, 2004 WL 1127189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/millsap-v-mcdonell-douglas-corp-ca10-2004.