Richard v. Industrial Commercial Electrical Corp.

337 F. Supp. 2d 279, 2004 U.S. Dist. LEXIS 20024, 2004 WL 2181606
CourtDistrict Court, D. Massachusetts
DecidedAugust 20, 2004
DocketCIV.A.04-40066-NMG
StatusPublished
Cited by4 cases

This text of 337 F. Supp. 2d 279 (Richard v. Industrial Commercial Electrical Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard v. Industrial Commercial Electrical Corp., 337 F. Supp. 2d 279, 2004 U.S. Dist. LEXIS 20024, 2004 WL 2181606 (D. Mass. 2004).

Opinion

MEMORANDUM OF DECISION

GORTON, District Judge.

On May 3, 2004, the Plaintiff, Donald J. Richard (“Richard”) filed a verified complaint in which he sought to make an election pursuant to the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161(a) (“COBRA”) for continuation of his coverage as a qualified beneficiary under the health insurance provided by his former employer, the Defendant Industrial Commercial Electrical Corporation (“ICE”).

The parties appeared for trial before this Court, sitting without a jury, on August 2, 2004. After a two-day trial, the Court announced its finding in favor of the Plaintiff which it now supplements with written findings of fact and conclusions of law.

*280 I.Findings of Fact

1. Richard resides at 70 Gardner Road in Winchendon, Massachusetts.

2. ICE maintains its principal place of business at 14A Airport Drive in Hopedale, Massachusetts.

3. Richard became an employee of ICE’s predecessor corporation, Industrial Commercial Electrical, Inc. (“old ICE”) in August, 1991. ICE subsequently purchased the assets of old ICE in a bankruptcy proceeding pursuant to Chapter 11 of the United States Bankruptcy Code and is the successor in interest to old ICE. Richard became an employee of ICE at the time of the asset purchase in April 2003.

4. When Richard was initially employed by old ICE, he was a Foreman Data Technician working on communication and other low voltage systems. As a foreman he was responsible for supervising the job and the work performed. His role after the asset purchase by ICE remained the same but he was required to purchase and use his own vehicle which he had not been required to do by old ICE. Richard purchased a 1997 Ford truck for which he received from ICE a vehicle allowance of $115 per week plus 14c per mile after the initial 30 miles of his daily commute because his vehicle was to be used for company business.

5. As an employee of ICE, Richard reported to David LeBlane, who was President of both old ICE and ICE, and to David’s brother Dwayne LeBlane, who was a Project Manager for both companies.

6. Richard’s wife Claire suffers from Multiple Sclerosis, chronic obstructive pulmonary disease and depression, among other ailments. She requires substantial medication and medical care which costs between $1,400 and $2,300 per month. At all times during his employment, Richard was covered under the family health insurance plan offered by ICE.

7. During March, 2004, ICE was in the process of moving its offices and warehouses from 9 Short Street in Worcester, Massachusetts to 14A Airport Drive in Hopedale, Massachusetts.

8. During the week ending March 20, 2004, Richard worked moving material from the Worcester location to the new location in Hopedale. Specifically, Richard drove from his home in Winchendon to Worcester to pick up and load into his truck filing cabinets, office modules, partitions, desks and countertops for transportation to Hopedale.

9. On either Wednesday, March 17 or Saturday, March 20, 2004, David LeBlane directed Richard to pick up at the Worcester warehouse certain items that Mr. Le-Blanc described as his personal property and deliver to Mr. LeBlanc’s new apartment. At about that time, David LeBlane asked Richard not to disclose the location of his apartment to anyone because of his pending marital difficulties with his wife.

10. Michael Scanlon began working for ICE in March 2004 and worked with Richard regularly.

11. After ICE’s move to Hopedale was completed, Richard continued to perform his regular duties for ICE, including business trips to New York and New Jersey on electrical contracting jobs.

12. Karl Walsh (“Walsh”) became the Treasurer and a member of the Board of Directors of ICE when the company purchased the assets of old ICE pursuant to the Chapter 11 proceeding but Richard did not work with or report to him during Richard’s employment at ICE.

13. On April 16, 2004, Dwayne LeBlane told Richard that Walsh wanted to meet with Richard at Walsh’s office. Dwayne LeBlane drove Richard to Walsh’s office *281 because Richard was unfamiliar with its location.

14. At that meeting, which was also attended by William Burns (“Burns”), ICE’s attorney and also a member of the Board of Directors, Walsh accused Richard of stealing from the company. After Richard denied that accusation, Burns told Richard that he was required to disclose David LeBlanc’s home address. Either Burns or Walsh indicated that Richard’s job with ICE was in jeopardy if he failed to comply.

15. Richard indicated that he did not know David LeBlanc’s address but that he did know how to get to David’s residence. Initially, Richard agreed to show Walsh where David lived but recanted 10 minutes later.

16. After learning of Richard’s refusal to show Walsh where David LeBlanc lived, Walsh informed Richard that he had 10 minutes to reconsider or he would be fired.

17. Richard did not relent or inform Walsh about the location of David Le-Blanc’s residence and his employment with ICE was terminated that day (April 16, 2004). At the same time, at Walsh’s direction, Richard’s cellular telephone service was disconnected.

18. On April 21, 2004, Richard went to ICE’s office to pick up his final paycheck. He met with attorney Burns who informed him that he had been terminated from ICE for stealing. Richard denied the allegation and requested the necessary paperwork to activate his COBRA benefits. Burns then informed Richard that ICE would not offer him COBRA coverage.

II. Conclusions of Law

1.This Court has jurisdiction over Plaintiffs claim pursuant to 28 U.S.C. § 1331 and the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001-1461 (“ERISA”).

2. Richard is entitled to participate in ICE’s group health insurance program based upon 29 U.S.C. § 1161.

3. COBRA provides that, for a maximum of 18 months after the termination of employment, former employees and qualified dependents may elect to continue health care benefits provided by the employer. 29 U.S.C. § 1162.

4. The former employee must, however, pay for those benefits himself at a fixed cost that is governed by the COBRA statute. 29 U.S.C. § 1162(3).

5. The former employee becomes eligible for a COBRA election only after a qualifying event, which includes termination other than by reason of the employee’s gross misconduct. 29 U.S.C. § 1163(2).

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337 F. Supp. 2d 279, 2004 U.S. Dist. LEXIS 20024, 2004 WL 2181606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-v-industrial-commercial-electrical-corp-mad-2004.