Samaroo v. Samaroo

743 F. Supp. 309, 12 Employee Benefits Cas. (BNA) 2767, 1990 U.S. Dist. LEXIS 3431, 1990 WL 100059
CourtDistrict Court, D. New Jersey
DecidedJuly 17, 1990
DocketCiv. 89-2215(GEB), 89-2216(GEB)
StatusPublished
Cited by10 cases

This text of 743 F. Supp. 309 (Samaroo v. Samaroo) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samaroo v. Samaroo, 743 F. Supp. 309, 12 Employee Benefits Cas. (BNA) 2767, 1990 U.S. Dist. LEXIS 3431, 1990 WL 100059 (D.N.J. 1990).

Opinion

*311 AMENDED OPINION 1

BROWN, District Judge.

This matter is before the Court on three motions: (1) Louise Robiehaud’s motion, as plaintiff, to remand Civil No. 89-2215 to state court; (2) Louise Robichaud’s motion, as defendant, to dismiss Civil No. 89-2216; and (3) Plaintiff, AT & T Management Pension Plan’s, motion to consolidate Civil No. 89-2215 and Civil No. 89-2216. In resolving these motions, the Court must consider, among other issues, the scope of removal jurisdiction over an action which implicates both state domestic relations law and the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq.

I. BACKGROUND

The genesis of this dispute arose on October 25, 1984, when the New Jersey Superior Court, Chancery Division, entered a Final Judgment of Divorce dissolving the marriage of Louise Robichaud Samaroo (hereinafter Robichaud) to Winston Sama-roo. That Final Judgment of Divorce incorporated a settlement agreement, the only relevant portion of which provided:

(d) Pensions, Profit Sharing and Bell System
Savings Plan — (1) Husband has a vested pension having a present value, if husband were to retire at this time, of $1,358.59 per month. At the time of husband’s retirement and receipt of his pension he agrees to pay to wife one half of said monthly amount.

See Settlement Agreement, II 3.2(d) (emphasis added).

At the time of the divorce, Winston Sa-maroo was employed by AT & T Technologies, and he enjoyed vested pension rights in the AT & T Management Pension Plan (“AT & T-MPP”). It was one-half of these rights which Winston Samaroo assigned to his former wife under the settlement agreement. Before reaching retirement, however, Winston Samaroo died on September 20, 1987. Robichaud submitted the settlement agreement to AT & T-MPP and requested payment of one-half her former husband’s vested pension benefits.

In June 1988, AT & T-MPP denied Robi-chaud’s claim for benefits, concluding that the settlement agreement did not create any right in Robichaud to survivor’s benefits, but merely gave her a right to receive benefits upon Winston Samaroo’s retirement. AT & T-MPP further determined that, because ERISA permits the creation of a survivor’s benefit only in favor of an existing “participant” in the pension plan, and because Winston Samaroo’s status as a “participant” ended at his death, any attempt by Robichaud to amend the Final Judgment of Divorce and specify an entitlement to survivor’s benefits would be unenforceable under ERISA.

Undaunted by AT & T-MPP’s position, Robichaud filed a motion in the New Jersey Superior Court, Chancery Division, to amend the Final Judgment of Divorce and join AT & T-MPP as a defendant. 2 AT & T-MPP timely filed a Petition for Removal with this Court pursuant to 28 U.S.C. § 1441. The Petition for Removal, Civil No. 89-2215(GEB), alleged federal jurisdiction under ERISA on the ground that the motion by Robichaud to amend the Final Judgment of Divorce “is an action by an alleged beneficiary of an ERISA-qualified pension benefit plan to secure benefits from that plan.” AT & T-MPP simultaneously filed a complaint in this Court for declaratory relief. That complaint, Civil No. 89-2216(GEB), seeks an order:

(1) declaring that Winston Samaroo’s rights under the pension plan were finally determined on the date of his death and cannot now be retroactively changed;
(2) declaring that Robichaud is not entitled to any survivor’s benefits under the pension plan;
*312 (3) declaring that any order issued by the Superior Court of New Jersey, Chancery Division, amending the settlement agreement would be inconsistent with ERISA; and
(4) declaring that the Final Judgment of Divorce, which incorporated the settlement agreement, cannot be modified nunc pro tunc following the death of Winston Samaroo.

Robichaud has now filed a motion to remand the removed state action, Civil No. 89-2215(GEB), contending that this action does not arise under ERISA, and that no other basis of federal jurisdiction exists to support removal. Robichaud has also filed a motion to dismiss the declaratory judgment action, Civil No. 89-2216(GEB), on jurisdictional grounds as well. AT & T-MPP has moved to consolidate both actions, and opposes Robichaud’s motions on the argument that the broad scope of ERISA confers jurisdiction on this Court.

II. DISCUSSION

A. The Statutory Framework

A brief review of the federal statutory framework is necessary to a full understanding of the jurisdictional issues before the Court. Prior to 1984, ERISA prohibited the alienation or assignment of pension plan benefits. See 29 U.S.C. § 1056(d)(1) (“Each pension plan shall provide that benefits provided under the plan may not be assigned or alienated.”). On August 23, 1984, Congress amended ERISA by passing the Retirement Equity Act (REA), the provisions of which became effective January 1, 1985. REA permits a pension plan participant to alienate or assign benefits under a domestic relations order, 3 but only if the order is “determined to be a qualified domestic relations order.” See 29 U.S.C. § 1056(d)(3)(A). A domestic relations order must satisfy the requirements of § 1056(d)(3)(C) and (D) before it can be a “qualified domestic relations order.” The first of these two subsections outlines the information which a domestic relations order must contain:

(C) A domestic relations order meets the requirements of this subparagraph only if such order clearly specifies—
(i) the name and the last known mailing address (if any) of the participant and the name and mailing address of each alternate payee covered by the order,
(ii) the amount or percentage of the participant’s benefits to be paid by the plan to each such alternate payee, or the manner in which such amount or percentage is to be determined,
(iii) the number of payments or period to which such order applies, and
(iv) each plan to which such order applies.

29 U.S.C. § 1056(d)(3)(C). The second subsection limits the ability of a participant to assign or alienate benefits:

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Bluebook (online)
743 F. Supp. 309, 12 Employee Benefits Cas. (BNA) 2767, 1990 U.S. Dist. LEXIS 3431, 1990 WL 100059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samaroo-v-samaroo-njd-1990.