Slice v. Sons of Norway

866 F. Supp. 397, 1993 U.S. Dist. LEXIS 20737, 1993 WL 742746
CourtDistrict Court, D. Minnesota
DecidedApril 13, 1993
DocketCiv. No. 4-92-1233
StatusPublished
Cited by1 cases

This text of 866 F. Supp. 397 (Slice v. Sons of Norway) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slice v. Sons of Norway, 866 F. Supp. 397, 1993 U.S. Dist. LEXIS 20737, 1993 WL 742746 (mnd 1993).

Opinion

[399]*399MEMORANDUM AND ORDER

MacLAUGHLIN, District Judge.

FACTS

Plaintiff Robert E. Slice alleges the following facts. On April 15, 1979, plaintiff began working for defendant Sons of Norway as a custodian. On April 28,1987, defendant provided plaintiff with a statement of pension benefit determinations indicating that if plaintiff retired from full-time employment on May 31, 1987, defendant would pay plaintiff pension benefits of $251.87 per month for life. Plaintiff claims he decided to retire only after defendant informed him that he would receive $251.87 per month.1 Plaintiff retired on May 31, 1987 and began receiving monthly checks for $251.87 commencing on July 1, 1987. On June 12, 1989, plaintiff received a letter from defendant stating that there had been a miscalculation and plaintiff was entitled to only $105.80 per month. According to defendant, from July 1987 to June 1989 there had been overpayments to plaintiff of $3,505.68, but defendant waived its rights to collect those overpayments. However, defendant informed plaintiff that effective July 1, 1989, his monthly benefits would be reduced to $105.80.

PROCEDURAL HISTORY

Plaintiff filed suit in state court alleging breach of contract, negligent misrepresentation, and breach of fiduciary duty. The state trial court found plaintiff’s claims preempted by the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq. (ERISA) and dismissed the action. Plaintiff then filed suit in federal court alleging the same causes of action. The district court2 dismissed all claims finding that they were based on state law and were therefore preempted by ERISA. Plaintiff appealed to the United States Court of Appeals for the Eighth Circuit. The Eighth Circuit held that “[wjhile state law is preempted in an action relating to a benefit plan, we conclude that the District Court should have addressed whether Slice’s complaint stated a cause of action under either an express provision of ERISA or federal common law.” Slice v. Sons of Norway, 978 F.2d 1045, 1046 (8th Cir.1992). The Eighth Circuit remanded the case and instructed the Court, to which the case has been reassigned, to address those issues. Defendant has now brought a motion to dismiss on the grounds that plaintiff has failed to state a claim for which relief may be granted.

DISCUSSION

In reviewing a motion to dismiss for failure to state a claim the Court presumes all factual allegations to be true and all reasonable inferences from those allegations are construed in favor of the non-moving party. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974); Palmer v. Tracor, Inc., 856 F.2d 1131, 1132 (8th Cir.1988). The appropriate inquiry is not whether plaintiff will ultimately prevail but whether he will be allowed to introduce evidence to support his claims. Scheuer, 416 U.S. at 236, 94 S.Ct. at 1686. Because dismissal on the pleadings is an extreme remedy it is not favored by the courts and is employed only when “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957) (footnote omitted). Robinson v. MFA Mutual Insurance Co., 629 F.2d 497, 500 (8th Cir.1980). See also Palmer, 856 F.2d at 1132.

1. Has Plaintiff Stated a Claim Under ERISA?

ERISA’s civil enforcement provisions provide the exclusive remedy for participants or beneficiaries seeking to enforce their rights under an ERISA plan. Pilot Life Ins. Co. v. Dedeaux, 481 U.S. 41, 51-57, 107 S.Ct. 1549, 1555-58, 95 L.Ed.2d 39 (1987). Under the civil enforcement scheme of ERISA, a [400]*400participant or beneficiary may sue to recover benefits due under the plan or to enforce rights under the plan. 29 U.S.C. § 1132(a)(1)(B). A plan participant or beneficiary may also bring an action for breach of fiduciary duty. Id. § 1132(a)(2); § 1109.

Defendant argues that plaintiff cannot state a claim under section 1132(a)(1)(B) because that section limits recovery to “benefits due to him under the terms of his plan.” Defendant asserts that the benefits due plaintiff under the terms of the plan are $105.80 per month and not $251.87 per month.

Plaintiff appears to concede that he cannot state a claim under section 1132(a)(1)(B) for benefits due under the terms of the plan. In fact, plaintiff does not contend that he is actually entitled to $251.87 per month. Instead, plaintiff argues that defendant breached its fiduciary duty by negligently misrepresenting what his monthly benefits would be. Plaintiff cites Kuntz v. Reese, 760 F.2d 926, 935 (9th Cir.1985), vacated on other grounds, 785 F.2d 1410 (9th Cir.), cert. denied, 479 U.S. 916, 107 S.Ct. 318, 93 L.Ed.2d 291 (1986), for the proposition that misrepresentations can give rise to a claim for breach of fiduciary duty under section 1132(a)(2). Thus, the issue before the Court is whether plaintiff has stated a claim under section 1132(a)(2).

ERISA imposes personal liability on a plan fiduciary if the plan fiduciary breaches a duty and that breach results in losses to the plan. 29 U.S.C. § 1132(a)(2); § 1109. The Court finds that if defendant’s mistaken benefits calculations amounted to a breach of fiduciary duty, it was a duty to the plan’s other participants, not to plaintiff, that was breached. See Id. § 1104(a)(1)(A)(i). Defendant overpaid plaintiff for two years and has now waived any right to recover those overpayments. The Court cannot award plaintiff benefits on a breach of fiduciary duty theory when he admits he is not entitled those benefits under the terms of the plan. See Rinard v. Eastern Co., 769 F.Supp. 1416, 1428 (S.D.Ohio 1991). The viability of plaintiff’s claim must stand or fall on an estoppel theory and not a breach of fiduciary duty theory. See id. Whether plaintiff can establish an estoppel claim is a matter of federal common law and is discussed infra.

More important, even if plaintiff could state a claim for breach of fiduciary duty, the plan, and not plaintiff, would be entitled to recover damages. In Massachusetts Mut. Life Ins. Co. v. Russell, 473 U.S. 134, 105 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
866 F. Supp. 397, 1993 U.S. Dist. LEXIS 20737, 1993 WL 742746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slice-v-sons-of-norway-mnd-1993.