Rechsteiner v. Madison Fund, Inc.

75 F.R.D. 499, 15 Fair Empl. Prac. Cas. (BNA) 216, 1977 U.S. Dist. LEXIS 15241
CourtDistrict Court, D. Delaware
DecidedJune 27, 1977
DocketCiv. A. No. 76-293
StatusPublished
Cited by21 cases

This text of 75 F.R.D. 499 (Rechsteiner v. Madison Fund, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rechsteiner v. Madison Fund, Inc., 75 F.R.D. 499, 15 Fair Empl. Prac. Cas. (BNA) 216, 1977 U.S. Dist. LEXIS 15241 (D. Del. 1977).

Opinion

MURRAY M. SCHWARTZ, District Judge.

The plaintiff, Conrad Rechsteiner, III (“Rechsteiner”), has filed this action under the provisions of the Age Discrimination in Employment Act of 1967 (“ADEA”), 29 U.S.C. §§ 621 et seq. and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 1001 et seq. Presently before the Court are several motions submitted by the defendant, Madison Fund, [501]*501Inc. (“Madison Fund”), pursuant to Rule 12 of the Federal Rules of Civil Procedure.1

The amended complaint2 alleges that Rechsteiner was employed for 28 years by Madison Fund in an unspecified capacity. In September, 1975, the defendant informed Rechsteiner that he was no longer to report to work, but Madison Fund continued to pay him for several months thereafter. The amended complaint further alleges that in January, 1976, the plaintiff received a notice from Madison Fund that he would be separated from service, effective February 15, 1976. Rechsteiner stopped receiving payroll checks “soon thereafter.”3 The plaintiff contends that his termination of employment occurred less than eight months prior to the date he would qualify for early retirement benefits.

Count I of the amended complaint alleges that Rechsteiner’s employment with Madison Fund was terminated because of his age in violation of the ADEA, 29 U.S.C. § 623(a)(1). As relief, the plaintiff seeks reinstatement for a time sufficient to qualify for' early retirement benefits, lost wages, attorney’s fees and liquidated damages. 29 U.S.C. § 626(b). Rechsteiner also requests damages for emotional and psychic distress caused by the allegedly wrongful discharge. At argument on defendant’s motion to strike this claim, counsel for the plaintiff conceded that a recent Third Circuit case, Rogers v. Exxon Research and Engineering Co., 550 F.2d 834 (3d Cir. 1977), holds such damages not recoverable under the ADEA. Accordingly, the defendant’s motion to strike that claim for damages will be granted.

Count II of the amended complaint asserts that Madison Fund failed to furnish upon request by the plaintiff certain information about his rights in and benefits under the defendant’s pension plan. Rech-steiner contends that the actions by the defendant constitute a violation of ERISA and seeks injunctive relief to obtain the information and damages in accordance with the provisions of ERISA. See 29 U.S.C. § 1132(c).

Count III of the amended complaint is styled as a claim for unjust enrichment based on the termination of the plaintiff’s employment and the consequent asserted loss of his pension benefits. To remedy this injury Rechsteiner seeks attorney’s fees, restoration of early retirement benefits and certain money damages.

Count IV of the amended complaint is a breach of contract claim. Briefly stated, the plaintiff contends that an authorized agent of the defendant orally promised to retain Rechsteiner on the payroll from September, 1975 to October, 1976 in order to permit him to qualify for early retirement pension benefits. By terminating him from the payroll in early 1976, Rechsteiner alleges that Madison Fund breached the oral contract and therefore he should be awarded monetary and equitable relief.

There are four motions by the defendant before the Court: (1) a motion to strike the claim in Count I for liquidated damages; (2) a motion to strike the demand for jury trial on Count I; (3) a motion to strike Count III; (4) a motion to dismiss Count IV for want of jurisdiction. These motions will be treated seriatim.

1. Motion to Strike Claim for Liquidated Damages

The defendant’s motion to strike the plaintiff’s claim under Count I for liquidated damages is based on the contention that the amended complaint fails to set out with sufficient specificity the grounds on which the plaintiff is relying to justify an award of liquidated damages. The Court finds this motion without merit.

[502]*502Liquidated damages can only be awarded if the violation of the ADEA was willful.4 Thus, the plaintiffs complaint must comply with Rule 9 as well as Rule 8 of the Federal Rules of Civil Procedure. Rule 9(b) permits a plaintiff to plead a “condition of mind” in general terms, in contrast to the requirements for pleading fraud or mistake. See generally Wright & Miller, Federal Practice and Procedure: Civil § 1301 (1969). In Count I, the plaintiff has alleged the facts surrounding his discharge, that his termination from employment by the defendant was in violation of the ADEA and that it was done willfully. The Court finds that these general allegations satisfy the liberal pleading requirements of Rules 8 and 9 and accordingly, the motion to strike the claim for liquidated damages will be denied. If defendant requires more knowledge of the alleged underlying factual basis which supports plaintiff’s claim for liquidated damages, it need only take advantage of available discovery tools under the Federal Rules of Civil .Procedure. *

II. Motion to Strike Plaintiff’s Demand for Jury Trial on Count I

Defendant has moved to strike the plaintiff’s demand for a jury trial on certain of the issues raised in Count I of the amended complaint. Briefly stated, Madison Fund contends that neither the ADEA itself nor the Seventh Amendment nor the decisional law interpreting closely analogous statutes entitles the plaintiff to a jury trial.5 For purposes of analyzing the defendant’s argument, each of the issues raised in Count I will be treated separately. Attention will be addressed first to the claim for back pay.

A. Lost Wages

Recently the Third Circuit has held that a jury trial is proper in the context of an ADEA suit seeking only money damages. See Rogers v. Exxon Research and Engineering Co., supra. Defendant asserts that Rogers is inapposite to the case at bar because Rechsteiner is seeking equitable relief in the form of reinstatement and the money damages requested are merely incidental to the equitable relief. I do not read the Rogers holding so narrowly.

Count I of the amended complaint alleges a violation of the ADEA. As remedy for that wrongful act, the plaintiff seeks both money damages for, inter alia, lost wages and equitable relief in the form of reinstatement and the award of attorney’s fees.

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Bluebook (online)
75 F.R.D. 499, 15 Fair Empl. Prac. Cas. (BNA) 216, 1977 U.S. Dist. LEXIS 15241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rechsteiner-v-madison-fund-inc-ded-1977.