Muller v. American Management Ass'n International

315 F. Supp. 2d 1136, 2003 U.S. Dist. LEXIS 25271, 2003 WL 23484630
CourtDistrict Court, D. Kansas
DecidedNovember 12, 2003
DocketCIV.A. 03-2225-CM
StatusPublished
Cited by2 cases

This text of 315 F. Supp. 2d 1136 (Muller v. American Management Ass'n International) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Muller v. American Management Ass'n International, 315 F. Supp. 2d 1136, 2003 U.S. Dist. LEXIS 25271, 2003 WL 23484630 (D. Kan. 2003).

Opinion

MEMORANDUM AND ORDER

MURGUIA, District Judge.

Plaintiffs bring this action against defendants pursuant to the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq., and the Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201 et seq. Plaintiffs also assert a breach of contract claim under state law. This matter is before the court on defendant’s Motion to Dismiss (Doc. 9).

I. Standards

The court will dismiss a cause of action for failure to state a claim only when it appears beyond a doubt that the plaintiff can prove no set of facts in support of the theory of recovery that would entitle him or her to relief, Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); Maher v. Durango Metals, Inc., 144 F.3d 1302, 1304 (10th Cir.1998), or when an issue of law is dispositive, Neitzke v. Williams, 490 U.S. 319, 326, 109 S.Ct. 1827, 104 L.Ed.2d 338 (1989). The court accepts as true all well-pleaded facts, as distinguished from eonclusory allegations, Maher, 144 F.3d at 1304, and all reasonable inferences from those facts are viewed in favor of the plaintiff, Witt v. Roadway Express, 136 F.3d 1424, 1428 (10th Cir.1998). The issue in resolving a motion such as this is not whether the plaintiff will ultimately prevail, but whether he or she is entitled to offer evidence to support the claims. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974), overruled on other grounds, Davis v. Scherer, 468 U.S. 183, 104 S.Ct. 3012, 82 L.Ed.2d 139 (1984).

II. Discussion

Plaintiffs, as seminar presenters for defendant, allege they were improperly classified as independent contractors and thus denied benefits to which they were entitled under ERISA. Plaintiffs also claim that defendant breached its agency agreement 1 with plaintiffs by not providing employee *1139 benefits and that defendant violated FLSA by denying them proper overtime compensation.

A. Count I

Defendant seeks dismissal of Count I claiming that (1) plaintiffs’ agency agreement with defendant precludes an ERISA claim and (2) plaintiffs have not exhausted all available administrative remedies as required.

1. Agency Agreement

Defendant asserts that plaintiffs agreed, by way of a written contract, to be independent contractors. Defendant argues that, as a result, plaintiffs are precluded from seeking employee status—and thereby being eligible for benefits—under ERISA. Plaintiffs contend that they were common law employees of defendant despite the terms of the written agreement.

Contracts, such as agency agreements, may define the relationship between parties and can foreclose an argument of common law employee status under ERISA. See Boren v. Southwestern, Bell Tel. Co., 933 F.2d 891 (10th Cir.1991) (rejecting a claim of employee status when plaintiffs contract specifically designated him as an “independent contractor” and further stated that he would not be considered an employee “for any purpose”); see also Capital Cities/ABC, Inc. v. Ratcliff, 141 F.3d 1405 (10th Cir.1998) (affirming Boren as law in the Tenth Circuit). Significantly, the Boren and Capital Cities courts reference the agreements and base summary judgment, at least in part, on the strict language of the specific provisions contained within those agreements. Id. at 892; Capital Cities, 141 F.3d at 1410.

While defendant’s argument here appears persuasive, this court does not have the benefit of reviewing the agency agreement in question. Interestingly, defendant could have submitted the parties’ agency agreement since plaintiffs referenced the agreement in their complaint and the agreement is central to plaintiffs’ claims. MacArthur v. San Juan County, 309 F.3d 1216, 1221 (10th Cir.2002). However, without the opportunity to review the document, the court cannot make a determination regarding the parties’ relationship based solely on references in the pleadings. .

2. Exhaustion of Administrative Remedies

Defendant contends that plaintiffs have failed to exhaust available administrative remedies and are, therefore, precluded from seeking a judicial remedy. Plaintiffs acknowledge their failure to exhaust all available remedies but assert that further pursuit of their claim through administrative channels would have been futile. Alternatively, plaintiffs contend that defendant denied them meaningful access to information about the benefits plan—including defendant’s administrative appeals process.

Although exhaustion of administrative remedies generally is required, courts may exercise discretion to waive the requirement if a plaintiff was denied meaningful access to claim and review procedures. Caldwell v. W. Atlas Int’l, 871 F.Supp. 1392, 1396 (D.Kan.1994). The rationale underlying this exception is that a court should not dismiss an action where a defendant “asks [the court] to require that [plaintiff] exhaust those very procedures to which [defendant] denied him access.” Curry v. Contract Fabricators Inc. Profit Sharing Plan, 891 F.2d 842, 846-47 (11th Cir.1990). In this case, plaintiffs allege in their complaint they were not provided information regarding claim filing procedures under defendant’s employee benefit *1140 plan — even after numerous requests for such benefits. (Complaint ¶ 57).

Courts also may waive the exhaustion requirement if exhaustion of administrative procedures would have been futile. Potter v. ICI Americas, Inc., 103 F.Supp.2d 1062, 1066 (S.D.Ind.1999). The futility exception requires a showing that a plaintiffs administrative claims would have been denied on further appeal, and “not just that [a plaintiff] thinks it is unlikely an appeal [would have resulted] in a different decision.” Getting v. Fortis Benefits Ins. Co., 5 Fed.Appx. 833, 836, 2001 WL 201966 (10th Cir.2001).

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Bluebook (online)
315 F. Supp. 2d 1136, 2003 U.S. Dist. LEXIS 25271, 2003 WL 23484630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muller-v-american-management-assn-international-ksd-2003.