Service Employees International Union National Industry Pension Fund v. Upmc McKeesport

CourtDistrict Court, District of Columbia
DecidedAugust 24, 2022
DocketCivil Action No. 2022-0249
StatusPublished

This text of Service Employees International Union National Industry Pension Fund v. Upmc McKeesport (Service Employees International Union National Industry Pension Fund v. Upmc McKeesport) 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
Service Employees International Union National Industry Pension Fund v. Upmc McKeesport, (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

SERVICE EMPLOYEES INTERNATIONAL UNION NATIONAL INDUSTRY PENSION FUND, et al.,

Plaintiffs, Civil Action No. 22-cv-249 (TSC/GMH) v.

UPMC McKEESPORT,

Defendant.

MEMORANDUM OPINION & ORDER

Before the Court is Defendant UPMC McKeesport’s (“Defendant” or “UPMC”) Motion to

Stay this case, a delinquent pension contribution action brought by Service Employees

International Union National Industry Pension Fund (the “Pension Fund” or the “Fund”) and its

Board of Trustees (collectively, “Plaintiffs”) under Section 515 of the Employee Retirement

Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1145. 1 ECF No. 6. For the reasons that

follow, the motion to stay is denied. 2

I. BACKGROUND

Plaintiffs allege that UPMC, a hospital outside Pittsburgh, has for many years failed to

make pension contributions as required by UPMC’s collective bargaining agreement (“CBA”)

1 Judge Tanya S. Chutkan referred this case to the undersigned for full case management in accordance with Local Civil Rule 72.2(a). See Minute Order (April 7, 2022). 2 The relevant docket entries for purposes of this Memorandum Opinion and Order are: (1) Plaintiffs’ Complaint (ECF No. 1); (2) UPMC’s motion to stay (ECF No. 6); (3) Plaintiffs’ opposition to the motion to stay (ECF No. 11); (4) UPMC’s reply to Plaintiffs’ opposition to the motion to stay (ECF No. 12); and (5) the parties’ Joint Status Report (ECF No. 26). The page numbers cited herein are those assigned by the Court’s CM/ECF system. with its nurses, which was negotiated and agreed to with the nurses’ union, SEIU Healthcare

Pennsylvania CTW, CLC (the “Union”). See ECF No. 1.

The motion to stay is premised largely on the fact that, hours before Plaintiffs filed this

action, UPMC filed a complaint for a declaratory judgment in the Western District of Pennsylvania

against the Pension Fund and the Union (the “Declaratory Judgment Action”). See Complaint,

UPMC McKeesport v. Service Employees International Union National Industry Pension Fund,

et al., No. 2:22-cv-178 (W.D.P.A. Feb. 1, 2022), ECF No. 1. The Declaratory Judgment Action

sought a declaration that UPMC does not owe any additional payments to the Pension Fund beyond

those already contributed. See id. at 10–11. UPMC argues that, for reasons of judicial economy,

this case should be stayed pending the resolution of the Declaratory Judgment Action because the

outcome there may determine whether it has any obligations to the Pension Fund in this case. ECF

No. 6-3 at 2–4. The Pension Fund opposes a stay, contending that a pause here is unnecessary,

both because the Declaratory Judgment Action is jurisdictionally infirm and therefore the court

there may not reach a merits resolution that would have any simplifying effect on this case, and

because even if UPMC prevails in the Declaratory Judgment Action, the parties would still have

to return to this Court to address unadjudicated claims. ECF No. 11 at 5–13. The Pension Fund

also says that allowing the Declaratory Judgment Action to proceed first would contravene

ERISA’s intent to provide fund administrators with greater choice in where to bring collection

actions. Id. at 4–5.

Following the completion of briefing on the motion to stay, the parties turned their attention

to the Declaratory Judgment Action. The Pension Fund and the Union (the defendants in the

Declaratory Judgment Action) moved to dismiss, arguing that UPMC lacked standing to assert

some of its claims and that the court lacked subject matter jurisdiction to hear them. See UPMC

2 McKeesport v. Serv. Emps. Int’l Union Nat’l Indus. Pension Fund, No. 22-cv-178, 2022 WL

1620075, at *2–3 (W.D. Pa. May 23, 2022) (hereinafter “UPMC I”). The court in the Western

District of Pennsylvania granted the motion, but did so without prejudice and allowed UPMC (the

plaintiff in the Declaratory Judgment Action) to amend its complaint. Id. at *4. UPMC filed an

amended complaint, but it fared no better, and the claims against the Pension Fund were again

dismissed—this time with prejudice. UPMC McKeesport v. Serv. Emps. Int’l Union Nat’l Indus.

Pension Fund, No. 22-cv-178, 2022 WL 3042659, at *6 (W.D. Pa. Aug. 2, 2022) (hereinafter

“UPMC II”). UPMC was given until August 16, 2022, to file a second amended complaint against

the Union, but did not do so. See Order, UPMC McKeesport v. Service Employees International

Union National Industry Pension Fund, et al., No. 22-cv-178 (W.D.P.A. Aug. 2, 2022), ECF No.

40.

On August 13, 2022, this Court instructed the parties to submit “a joint report outlining

their view(s) on the impact” of the Declaratory Judgment Action on UPMC’s motion to stay.

Minute Order (Aug. 13, 2022). In response, UPMC simply noted that the Declaratory Judgment

Action “has been dismissed, subject to appeal.” ECF No. 26 at 1. The Pension Fund argued that

the dismissal of the Declaratory Judgment Action rendered the motion to stay moot because UPMC

sought a stay of this case only “‘until [the] resolution of [UPMC’s] declaratory judgment action.’”

Id. at 1–2 (quoting ECF No. 3 at 2). Thus, according to the Pension Fund, even had the stay been

granted, the stay “would have terminated on its own terms” with the dismissal of the Declaratory

Judgment Action. Id. at 2.

II. LEGAL STANDARD

A district court has “broad discretion to stay proceedings as an incident to its power to

control its own docket.” Clinton v. Jones, 520 U.S. 681, 706 (1997). In “the exercise of [its]

3 judgment,” the court must “‘weigh competing interests and maintain an even balance’ between the

court’s interests in judicial economy and any possible hardship to the parties.” Belize Soc. Dev.

Ltd. v. Gov’t of Belize, 668 F.3d 724, 732–33 (D.C. Cir. 2012) (quoting Landis v. N. Am. Co., 299

U.S. 248, 254–55 (1936)). So, while federal courts have a “virtually unflagging obligation . . . to

exercise the jurisdiction given them,” Colo. River Water Conservation Dist. v. United States, 424

U.S. 800, 817 (1976), a party may be required “to submit to delay not immoderate in extent and

not oppressive in its consequences if . . . convenience will thereby be promoted,” Landis, 299 U.S.

at 256. However, a “stay is immoderate and hence unlawful unless so framed in its inception that

its force will be spent within reasonable limits, so far at least as they are susceptible of prevision

and description.” Id. at 257. “Ordering a stay of ‘indefinite duration in the absence of a pressing

need’ would amount to an abuse of discretion.” Hulley Enters. Ltd. v. Russian Fed’n, No. 14-cv-

1996, 2022 WL 1102200, at *4 (D.D.C. Apr. 13, 2022) (quoting Belize Social Dev. Ltd., 668 F.3d

at 732).

Consistent with these principles, a court “‘may, with propriety, find it is efficient for its

own docket and the fairest course for the parties to enter a stay of an action before it, pending

resolution of independent proceedings which bear upon the case.’” United States v. Honeywell

Int’l, Inc., 20 F. Supp. 3d 129, 132 (D.D.C. 2013) (quoting IBT/HERE Emp.

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