Shy v. Navistar Int'l Corp

District Court, S.D. Ohio·Decided October 8, 2021·No. 3:92-cv-00333·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO WESTERN DIVISION

ART SHY, et al., Plaintiffs, Case No. 3:92-cv-0333 V. JUDGE WALTER H. RICE NAVISTAR INTERNATIONAL CORPORATION, et. al., Defendants.

DECISION AND ENTRY SUSTAINING THE REQUEST TO THE COURT OF THE HEALTH BENEFIT PROGRAM COMMITTEE (“HBPC”) TO RESOLVE THE FOLLOWING ISSUES: (1) WHETHER WILLIAM W. JONES WAS PROPERLY SEATED AS AN OTHER MEMBER ALTERNATE OF THE HBPC IN 2016-2017 AND IS THE OTHER MEMBER OF THE HBPC; AND WHETHER IF THE ANSWER TO THE FIRST INQUIRY IS “NO,” (2) THE HBPC HAS AUTHORITY TO CONDUCT REGULAR BUSINESS (DOC. #581-2); AND FINDING THAT (1) WILLIAM W. JONES WAS NOT PROPERLY SEATED AS AN OTHER MEMBER ALTERNATE OF THE HBPC IN 2016-2017 AND IS NOT THE OTHER MEMBER OF THE HBPC; AND (2) THE HBPC HAS AUTHORITY TO CONDUCT REGULAR BUSINESS; THE SECRETARY OF THE HBPC IS ORDERED TO SEND THIS DECISION AND ENTRY BY REGULAR MAIL AND/OR EMAILTO ALL NON-UAW RETIREES ALONG WITH THE ATTACHED NOTICE OF VACANCY FOR THE POSITIONS OF THE OTHER MEMBER AND THE OTHER MEMBER ALTERNATES AND A SEPARATE COPY OF THE NOTICE ITSELF NO LATER THAN THE CLOSE OF BUSINESS ON OCTOBER 14, 2021; THE SECRETARY IS FURTHER ORDERED TO SEND TO ANY PERSON INTERESTED IN APPLYING FOR THE POSITION OF OTHER MEMBER OR OTHER MEMBER ALTERNATE THE LAST KNOWN STREET OR EMAIL ADDRESS FOR ALL NON-UAW RETIREES WITHIN TWO BUSINESS DAYS OF THE REQUEST; ALL SIGNED PETITIONS FOR THE POSITIONS OF OTHER MEMBER AND OTHER MEMBER ALTERNATES TO BE SUBMITTED TO THE COURT BY

REGULAR U.S. MAIL OR EXPRESS MAIL ON OR BEFORE THE CLOSE OF BUSINESS ON NOVEMBER 15, 2021

Pending before the Court is a dispute concerning the membership of the Health Benefit Program Committee (“HBPC”), a creation of the Settlement Agreement approved by this Court on May 27, 1993, Doc. #324, with a final judgment filed adopting it as a Consent Decree on June 8, 1993. Doc. #327. Under the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 8 1001, et seq. (“ERISA”), the HBPC is a fiduciary of the Navistar International Transportation Corporation Retiree Health Benefit and Life Insurance Plan (“the Base Plan”). Pursuant to Article VI, Section 6.1 of the Base Plan, the HBPC consists of seven members: three “Company Members,” appointed by Navistar, also a fiduciary and Plan Administrator, two “UAW Members,” appointed by the UAW, and one “Other Member,” appointed to represent non-UAW retirees. Doc. #343-3, PagelD#210-215. The final member, the HBPC Chair, is appointed by a majority of the HBPC members. On August 13, 2021, a letter signed by “William W. Jones (“Jones”), HBPC Other Member,” dated August 12, 2021, was filed. Doc. #580. Although the

1 Pursuant to § 6.4 of Article VI, the role of the HBPC Chair is more limited than the other HBPC members. Presently, no Chair has been appointed by the HBPC.

Clerk of Court docketed this letter as a “Petition,” the pro se filing* states that “| have proceeded to assume the rights, duties and obligations as the HBPC Other Member. No further action from the Court is requested at this time.” /d., Pageld#5865. Jones's letter further stated that he felt it “prudent to advise the Court” that: (1) pursuant to a document entitled “Appointment of Replacement HBPC Other Member Alternates” (“Appointment of Replacement”), he and John Stitso (“Stitso”) were appointed “Other Member Alternates” by Jack Hall on July 14, 2016, then serving as the Other Member, and have been serving in that capacity ever since; (2) he and Stitso voted Jones as the Other Member after Hall died on July 23, 2021, and also named Robert Johnson as the new Other Member Alternate; and (3) although Jones has “proceeded to assume the rights, duties and obligations as the HBPC Other Member,” he has been “informally advised” that Navistar may have contacted the Court in an “unauthorized attempt” to “appoint someone else as the successor” to Jack Hall. /a.

On September 3, 2021, Navistar Inc. (“Navistar”), filed a “Plan Administrator's Notice of Response to Letter to Court Regarding HBPC Other Member” (“Notice”). Doc. #581. The Notice includes 118 pages of exhibits, Doc. ##581-1 and 581-2. Included in these exhibits is a letter dated September 2, 2021,

2 Jones's stationery states that he is an “Attorney at Law (Retired) (Illinois only)” and that he has been “directly and indirectly involved in disputes before the Court with Navistar over the Health Benefit Program Committee.” Doc. ##580 and 582.

addressed to the Court and sent by Sadie Hahn, Secretary of the HBPC,? on behalf of four members of the HBPC, two Company Members and two UAW Members. Doc. 581-2, PagelD##5908-59131. The HBPC letter identified three issues that “require resolution by the Court:” (1) whether Jones was properly seated as an Other Member Alternate in 2016-2017; (2) whether he has properly assumed the position of Other Member of the HBPC following the death of Jack Hall; and (3) whether the HBPC has the authority to conduct regular business with only four HBPC Members until such time as the Court determines the Other Member. The HBPC argues that because neither Jones nor Stitso was properly seated as Other Member Alternates, Jones, acting with Stitso, has “no basis or authority” to “declare himself to be the HBPC’s Other Member.” Concerning its request to conduct regular business, the HBPC cites to 8 6.4 (c) of Article VI, and requests “confirmation” from the Court that it has a quorum with four Members.

On September 8, 2021, Jones responded to the HBPC’s September 2, 2021, letter to the Court by filing a letter, along with “two appendices,” on September 10, 2021, arguing that he and Stitso were validly appointed as Other Member Alternates by Jack Hall in July 2016 and that he is now the Other Member. Doc. #582. He further contends that the HBPC has no authority to conduct business

3 Pursuant to § 6.1, the Secretary of the HBPC is elected by its Members. Doc. #343-3, PagelD#210. 4 As stated in the September 2, 2021, letter to the Court, the third Company Member, Dan Pikelny, recently left Navistar and the HBPC. Navistar, according to the HBPC Secretary, expects to appoint his replacement in the near future. Doc. #581-2, PagelD#5909.

without his receiving notice of meetings and participating as the Other Member. Doc. #582. Finally, Jones asserts that “[T]here is no justiciable issue pending before the Court,” given that neither the September 2, 2021, letter from the HBPC, “the entire 120-page filing,5 nor anything else filed in this case to date creates a justiciable dispute that actually invokes the Court's jurisdiction to decide whether my appointment as a successor HBPC Other Member (or as an OMA in 2016) is valid or not.” /a.

Before analyzing the validity of Jack Hall’s July 2016 Appointment of Replacement of Jones and Stitso, Jones’s claim that he is the successor HBPC Other Member and whether the HBPC has the authority under 8 6.4 (c) Article VI to conduct regular business in the absence of the Other Member, the Court will first address whether it has subject matter jurisdiction.

I. Subject Matter Jurisdiction

On May 27, 1993, this Court approved a Settlement Agreement entered into by the parties in Shy, et a/., v. Navistar International Transportation Corp., et al., Case No. 3:92-cv-333 (S.D. Ohio) (Rice, J). Doc. #324. Section 15.4 of the agreement provides that this Court “will retain exclusive jurisdiction to resolve any disputes relating to or arising out of or in connection with the enforcement,

5 The filing consists of 118 pages of exhibits attached to a two page “main document.”

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