Robinson v. United Mine Workers of America Health & Retirement Funds

449 F. Supp. 941, 98 L.R.R.M. (BNA) 2312, 1978 U.S. Dist. LEXIS 18144
CourtDistrict Court, District of Columbia
DecidedApril 25, 1978
DocketCiv. A. No. 77-0698
StatusPublished
Cited by5 cases

This text of 449 F. Supp. 941 (Robinson v. United Mine Workers of America Health & Retirement Funds) 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
Robinson v. United Mine Workers of America Health & Retirement Funds, 449 F. Supp. 941, 98 L.R.R.M. (BNA) 2312, 1978 U.S. Dist. LEXIS 18144 (D.D.C. 1978).

Opinion

MEMORANDUM

GESELL, District Judge.

In this class action survivors of certain deceased coal miners seek an order directing the defendant trustees of the United Mine Workers of America Health and Retirement Funds (“Funds”) to pay them permanent health care coverage in the case of spouses and coverage to age 22 in the case of dependents.1 The class represents all surviving spouses and dependents of deceased miners who satisfied the age and service requirements for pension benefits at the time of death and who

(1) were working in classified service in the coal industry at the time of death and had not applied for a pension, or

(2) had applied for and were eligible to receive pension benefits but were not receiving such benefits at the time of death because of their return to classified service in the coal industry.

The parties filed cross-motions for summary judgment. After oral argument the Court invited submission of additional information. The information has been received, and the case is ready for decision.

The background to plaintiffs’ claim is somewhat complex. Pensions and health and death benefits of the mine workers are funded by fixed, per-tonnage royalties paid by the so-called “signatory” coal operators. Prior to December 1974 the benefits were governed by the provisions of the United Mine Workers Welfare and Retirement [943]*943Fund of 1950 (the “1950 Fund”) and by various resolutions promulgated by the trustees of the Fund, who were authorized to establish eligibility criteria. Under this scheme the unremarried surviving spouse and dependents of a deceased working miner eligible for benefits received $5,000 in death benefits and five years of full health coverage. The spouse and dependents of a deceased pensioned miner received $2,000 and two years of health care.

The National Bituminous Coal Wage Agreement of 1974 (the “1974 Agreement”), negotiated through arduous collective bargaining between the mine workers and the coal operators, dissolved the 1950 Fund and created in its stead four separate trusts (collectively referred to as the “Funds”), all administered by the defendant trustees. The eligibility requirements under these trusts are set out in the trusts themselves. Two of these trusts govern pensions and two cover health and death benefits. This case concerns only the latter.

The two health and death benefit trusts established in 1974 are confusingly entitled the “1974 Benefit Plan and Trust” and the “1950 Benefit Plan and Trust” (the “1974 Trust” and the “1950 Trust,” respectively). They govern as follows:

(a) The 1974 Trust applies to all miners who died after December 1974, whether active or retired. It provides the surviving spouses and dependents of a deceased active miner with permanent health care and a death benefit of $7,500. Where the decedent is a pensioner, the survivors receive permanent health care and $2,500.

(b) The 1950 Trust deals with the survivors of miners already deceased at the time of the 1974 Agreement. It provides survivors of a pensioner benefits identical to those of a deceased pensioner under the 1974 Trust: $2,500 in death benefits and full health coverage. Survivors of deceased active miners, however, do not receive an equivalent benefit; rather they receive $5,000 in death benefits and only five years of health coverage.

Plaintiffs are all survivors of active miners who died before the 1974 Agreement, and their benefits are governed under (b) above. They claim that the 1950 Trust irrationally denies them the permanent health care enjoyed by the survivors of all other pension-eligible miners, whether active or retired. Had their decedents been pensioners, or had they applied for but not yet received pensions prior to their deaths, or had they died after 1974, members of the plaintiff class could have received permanent, rather than five years’ health care. Plaintiffs do not charge the trustees with any failure to carry out the terms of the trust agreements as written; they claim instead that the disparate treatment accorded them by the trusts violates section 302(c)(5) of the Taft-Hartley Act, 29 U.S.C. § 186(c)(5) (1970), and section 404(a)(1) of the Employment Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1104(a)(1) (Supp. V 1975), and consequently that the trustees’ failure to reform the trust in their favor constitutes a breach of fiduciary responsibility.2

The exclusion of plaintiffs from the permanent health care coverage provided survivors of all other pension-eligible miners requires close scrutiny. But simply because a benefit trust differentiates among different classes of employees does not of itself mean that the trustees have violated the Taft-Hartley Act or any other law. See, e. g., Toensing v. Brown, 528 F.2d 69, 71 (9th Cir. 1975). Under the Taft-Hartley Act and ERISA a trust provision is voidable only if it fails to operate for the “sole and exclusive benefit” of the employees on whose behalf the contributions are made. An arbitrary denial of permanent health care coverage to plaintiffs will not satisfy this standard. See Burroughs v. Board of [944]*944Trustees of Pension Trust Fund for Operating Engineers, 542 F.2d 1128, 1131 (9th Cir. 1976), cert. denied, 429 U.S. 1096, 97 S.Ct. 1113, 51 L.Ed.2d 543 (1977); Pete v. UMWA Welfare and Retirement Fund of 1950, 171 U.S.App.D.C. 1, 9, 517 F.2d 1275, 1283 (1975) (en banc); Roark v. Lewis, 130 U.S. App.D.C. 360, 361-362, 401 F.2d 425, 426-27 (1968); Morgan v. Laborers Pension Trust Fund, 433 F.Supp. 518, 524 (N.D.Cal.1977). If an arbitrary denial is shown, the trustees are bound to reform the objectionable provisions in spite of the fact that the eligibility standards are written into the trusts themselves. See, e. g., Toensing v. Brown, 528 F.2d 69, 72 (9th Cir. 1975). Indeed, this obligation is reflected in Article XX of the 1974 Agreement.3

In attacking the discrepancy, plaintiffs point to several factors. By all estimates the plaintiff class numbers between two and three hundred members and cannot increase in size. The number of survivors already receiving permanent health benefits approximates 35,000 and is growing. The significance of the plaintiff class in comparison to the total pool of permanent health care recipients, combined with the absence of any clear indication that the settlors in 1974 even recognized the discrepancy,4 suggests to plaintiffs that their omission was unconscious and thus unreasoned. Furthermore, they argue, the discrepancy does not further any legitimate purpose of the Agreement. It does not reward plaintiffs’ decedents as much as other pension-eligible miners for the substantial signatory service performed.

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449 F. Supp. 941, 98 L.R.R.M. (BNA) 2312, 1978 U.S. Dist. LEXIS 18144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robinson-v-united-mine-workers-of-america-health-retirement-funds-dcd-1978.