Scott v. Ameritech Publishing, Inc.

938 F. Supp. 2d 702, 2013 WL 1489095, 2013 U.S. Dist. LEXIS 51317
CourtDistrict Court, E.D. Michigan
DecidedApril 10, 2013
DocketCase No. 12-CV-12469
StatusPublished
Cited by2 cases

This text of 938 F. Supp. 2d 702 (Scott v. Ameritech Publishing, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott v. Ameritech Publishing, Inc., 938 F. Supp. 2d 702, 2013 WL 1489095, 2013 U.S. Dist. LEXIS 51317 (E.D. Mich. 2013).

Opinion

ORDER GRANTING CWA’S MOTION TO COMPEL ARBITRATION [# 28], DENYING WITHOUT PREJUDICE PLAINTIFF’S MOTION FOR LEAVE TO FILE SECOND AMENDED COMPLAINT [# 42] AND DISMISSING ACTION WITHOUT PREJUDICE

GERSHWIN A. DRAIN, District Judge.

I. INTRODUCTION

On June 6, 2012, Plaintiff, David Scott, filed the instant action pursuant to the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq. seeking recovery of approximately $175,000.00 in losses to his pension and retirement benefits. Presently before the Court is Defendant, Communication Workers of America’s (“CWA”) Motion to Compel Arbitration or to Dismiss because [705]*705Plaintiff Failed to Exhaust Arbitration Remedies, filed on December 5, 2012, and Plaintiffs Motion for Leave to File Second Amended Complaint, filed on January 8, 2013. These matters are fully briefed and a hearing was held on April 2, 2013.

For the reasons that follow, the Court grants CWA’s Motion to Compel Arbitration, denies without prejudice Plaintiffs Motion for Leave to File Second Amended Complaint and dismisses this action without prejudice.

II. BACKGROUND

Plaintiff began his employment with Defendant, Ameritech Publishing, Inc. (“API”), on March 11, 1991. Plaintiff began in the sales department and eventually was moved to the collections department. As an employee of API, Plaintiff was represented by CWA, as well as by Defendant Local 4108, a CWA affiliate. API’s parent, AT & T, sold a majority interest in its Yellow Pages operations to Defendant, YP Midwest Publishing, LLC (“YP”) in May of 2012.

Throughout his employment, Plaintiff participated in API’s retirement plan. Under the Plan, a person must reach the age of seventy-five (75) in order to receive full retirement benefits. This can be accomplished by various combinations of years of service and the employee’s age. As of June 24, 2012, Plaintiff would be fifty-five years of age and would have been employed with API for twenty-one years total, thus he would have reached the “modified rule of 75” rendering him eligible for full benefits upon his retirement.

On April 18, 2012, in anticipation of the pending sale, Marty Szeliga, an Executive of Defendant Local 4108, met with API employees to explain the sale of AT & T Yellow Pages and the formation of YP and to discuss API’s Retirement Incentive Offer (“RIO”). The RIO was available to union-represented API employees, including Plaintiff, who were within two years of retirement eligibility. Szeliga explained that there was a “2 plus 2” offer from API and anyone within twenty-four months of retirement (age plus years of service) would qualify. Plaintiff asked Szeliga if he took the RIO whether he would receive his full pension, and Szeliga assured him that he would receive his full pension if he retired early under the RIO.

On April 19, 2012, Plaintiff received email correspondence which attached the RIO. However, Plaintiff maintains that the information received concerning participation in the RIO was not clear as to the actual benefits a participant would receive. On April 20, 2012, Plaintiff again contacted Szeliga inquiring whether the “2 plus 2” offer would provide him with full pension benefits and Szeliga again assured Plaintiff that he would receive his full benefits if he accepted the RIO, even though he would be retiring about two months before his fifty-fifth (55th) birthday. On April 23, 2012, Plaintiff signed and faxed back the RIO.

When Plaintiff learned different information concerning the RIO, he contacted Szeliga, who repeated what he had said before, but also said he would double check "with Angela Miller, the President of Defendant Local 4108, and Monica Hogan, a CWA International Representative. Szeliga later phoned Plaintiff and told him that the RIO permitted Plaintiff to reach the “modified rule of 75,” therefore Plaintiff would receive his full pension even though he was leaving the company before his fifty-fifth (55th) birthday.

On April 25, 2012, Plaintiff received the Fidelity estimates he requested the day that API announced its sale to YP. Two estimates were provided; one calculated Plaintiff leaving API on April 16, 2012, and the other estimate calculated Plaintiff leaving the company on his birthday, or on [706]*706June 24, 2012. There was a very large difference (nearly 50%) in the amount Plaintiff would receive under the two calculations. Plaintiff immediately contacted Hogan and Miller to seek guidance. Neither Miller nor Hogan returned his phone calls. Szeliga eventually called Plaintiff and again reiterated that Plaintiff should not worry and that he would receive his full pension.

Plaintiff was very concerned and decided to send email correspondence rescinding his acceptance of the RIO. At this point, the deadline for submitting the RIO was still a few days away and Plaintiff was still employed at API. Plaintiff did not receive a response to this email.

On April 26, 2012, Plaintiff learned yet more information from the AT & T website concerning the RIO. Specifically, the information revealed that there would be no amendments to the pension by taking the RIO. The next day Plaintiff contacted Szeliga to inquire about the information on the AT & T website. Szeliga stated that it was his understanding that the RIO was a “2 plus 2” program. He further advised that Hogan had recently sent him an email stating that she was still negotiating the “2 plus 2” program. Later that day, Szeliga sent a text message to Plaintiff stating, “The Lump Sum is available, The 2/2 does not add to your pension calculation. Should you not reach the modify rule of 75 then there is the penalty associated with the pension.” After placing calls to Szeliga and Miller inquiring what he should do, Plaintiff thereafter received a text back from Szeliga stating: “Just spoke to Ms. Hogan who spoke with Labor. [Plaintiff] needs to send a Note with date and signature to the number he faxed the original paperwork to. Doc should state he wants to rescind his paperwork. She states the company will accept.” Plaintiff promptly faxed a second document stating that he was rescinding his participation in the RIO.

On May 1, 2012, Plaintiff sent a text message to Szeliga: “Still no news if they rescinded the paperwork.” Thereafter, Plaintiff sent another text to Szeliga”: “Just received my exit interview papers for May 8th please hurry!” He followed up with the following text message: “Just received a call from Kelly Thompson [Director of Customer Service at API] she just received a call from labor stating that they are not going to rescind my request!” Plaintiff also sent an email to Hogan personally asking for her assistance in getting the RIO rescinded.

On May 7, 2012, Plaintiff sent a text message to Szeliga stating: “I am running out of time.” Szeliga wrote back: “Nothing from Monica yet, we’re told she is working on the matter.” Plaintiffs May 8, 2012 exit interview coincided with the completion of the sale to YP. Plaintiff was terminated effective May 8, 2012. On May 9, 2012, Szeliga called Plaintiff and stated that they had to wait until the transaction closed before they could write a grievance on the matter. Plaintiff asked for a copy of the grievance, but was not provided a copy until September 17, 2012.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jalenna Bowie v. Clear Your Debt, LLC
523 F. App'x 315 (Sixth Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
938 F. Supp. 2d 702, 2013 WL 1489095, 2013 U.S. Dist. LEXIS 51317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-ameritech-publishing-inc-mied-2013.