Plain v. AT & T, Corp.

424 F. Supp. 2d 11, 17 A.L.R. Fed. 2d 877, 2006 U.S. Dist. LEXIS 17092, 2006 WL 763079
CourtDistrict Court, District of Columbia
DecidedMarch 24, 2006
DocketCiv.A. 02-02549(HHK)
StatusPublished
Cited by29 cases

This text of 424 F. Supp. 2d 11 (Plain v. AT & T, Corp.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plain v. AT & T, Corp., 424 F. Supp. 2d 11, 17 A.L.R. Fed. 2d 877, 2006 U.S. Dist. LEXIS 17092, 2006 WL 763079 (D.D.C. 2006).

Opinion

MEMORANDUM OPINION & ORDER

KENNEDY, District Judge.

Fannie Plain, an African American woman, brings this action against her former employer, AT & T Corporation (“AT & T”), pursuant to Section 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185, alleging that AT & T breached its collective bargaining agreement with her union when it terminated her employment following a period of sickness disability leave and later refused to reinstate her to her prior position. Plain also sues the Metropolitan Life Insurance Company (“MetLife”), claiming that it: (1) breached its fiduciary duty as a result of its decision to deny Plain’s claim for long-term disability (“LTD”) benefits; and (2) interfered with her protected rights in violation of Section 510 of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. *14 § 1140. 1 AT & T now moves for judgment on the pleadings on the grounds that Plain failed to exhaust her administrative remedies and that her claims against AT & T are barred by the statute of limitations. Similarly, MetLife moves for summary judgment on the basis that Plain’s Section 510 claim is untimely and argues additionally that its denial of Plain’s claim for LTD benefits was not an abuse of discretion. Upon consideration of the motions, the oppositions thereto, and the record of this case, the court concludes that both AT & T’s motion and MetLife’s motion must be granted.

I. FACTUAL BACKGROUND

Plain began working for AT & T on August 8, 1976. During the course of her employment, she worked at various AT & T offices, most recently in its office in Huntington, New York. On May 31, 2000, Plain became ill and was certified for sickness disability by defendant Metlife, the administrator of AT & T’s employee benefit plan. The medical certification for Plain’s sickness disability leave, however, expired on August 15, 2000. By letter dated September 22, 2000, AT & T advised Plain that her absence was no longer medically certified and that she was required either to report to work on October 2, 2000, or provide by September 22, 2000, documentation that would support any additional disability leave. The letter advised that failure to comply would be viewed as a resignation.

On September 27, 2000, Plain provided additional documentation in support of her request for disability leave. AT & T nevertheless terminated her employment on October 5, 2000 because Plain had neither reported to work on October 2, 2000, nor provided timely disability leave documentation.

The labor union to which Plain belongs, Communications Workers of America (“the Union”), initiated grievance procedures on October 5, 2000, against AT & T with respect to Plain’s termination. AT & T denied the grievance on May 25, 2001. Plain appealed the adverse ruling on June 1, 2001, but because the Union did not select an arbitrator by the deadline set forth in AT & T’s collective bargaining agreement, the claim was effectively denied.

In a separate proceeding, Plain appealed the denial of sickness disability benefits. Second Am. Compl. ¶ 10. On June 12, 2001, AT & T’s Benefit Claim and Appeal Committee reversed AT & T’s previous decision and approved the payment of sickness disability benefits to Plain for the period of August 15, 2000 to May 23, 2001, thereby providing Plain with fifty-two weeks of sickness disability benefits, the maximum amount permitted by AT & T’s sickness disability policy. As part of this decision, the Committee modified the date of Plain’s termination from October 5, 2000 to May 23, 2001.

On June 13, 2001, shortly after the Committee elected to grant Plain’s sickness disability benefits claim, MetLife notified Plain that if she wished to receive LTD benefits, she would need to make a separate request. Plain was also informed that in order for her application to be consid *15 ered timely, it needed to be filed within ninety days of the expiration of her sickness disability benefits. Plain submitted her application for LTD benefits on January 5, 2002. On April 1, 2002, MetLife denied Plain’s LTD claim because Plain had failed to comply with the ninety-day deadline for filing such claims and because the medical documentation submitted in connection with Plain’s application failed to demonstrate that she was disabled as defined by the plan. Plain appealed Met-Life’s determination on May 10, 2002, and that appeal was denied on June 28, 2002.

According to Plain, from the latter part of June 2001 through September 2002, she made several requests, orally and in writing, to be reinstated to her position at AT & T based on the favorable sickness disability decision. Although Plain “sought the Union’s assistance in pursuing her reinstatement due to the favorable appeal decision,” Second Am. Compl. ¶ 14, neither Plain nor the Union initiated a separate grievance concerning her reinstatement.

On September 18, 2002, AT & T informed Plain that pursuant to the terms of AT & T’s disability plan, an AT & T employee’s employment ends after fifty-two weeks of sickness disability benefits are paid and that there is no guarantee of reinstatement. AT & T reasoned that because Plain was terminated on May 23, 2001, which is when her sickness disability benefits were exhausted, it was under no obligation to reinstate her.

II. ANALYSIS

Plain asserts two claims against Met-Life: (1) a breach of fiduciary duty and a violation of ERISA arising out of Met-Life’s denial of LTD benefits; and (2) interference with protected rights in violation of Section 510 of ERISA, 29 U.S.C. § 1140. MetLife has moved for summary judgment with respect to both of these claims. 2

In addition, Plain brings a hybrid Section 301 claim against AT & T in which she alleges that AT & T breached its collective bargaining agreement by terminating her employment and rejecting her request for reinstatement, as well as alleging that her union breached its duty of fair representation when it inadequately prosecuted her grievance. AT & T moves for judgment on the pleadings with respect to this claim.

A. MetLife’s Denial of LTD Benefits

In Firestone Tire & Rubber Co. v. Bruch, the Supreme Court established that claims brought under ERISA challenging the denial of insurance benefits are “to be reviewed under a de novo standard unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan,” in which case review is for abuse of discretion. 489 *16 U.S. 101, 115, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989). In the instant case, neither side disputes that the employee benefit plan at issue confers discretion on MetLife in determining eligibility. See Record (“R.”) 441, 444, 466, 469.

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Bluebook (online)
424 F. Supp. 2d 11, 17 A.L.R. Fed. 2d 877, 2006 U.S. Dist. LEXIS 17092, 2006 WL 763079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plain-v-at-t-corp-dcd-2006.