Souza v. Scalone

64 F.R.D. 654, 87 L.R.R.M. (BNA) 2909
CourtDistrict Court, N.D. California
DecidedNovember 4, 1974
DocketNo. C-73-1589 WHO
StatusPublished
Cited by24 cases

This text of 64 F.R.D. 654 (Souza v. Scalone) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Souza v. Scalone, 64 F.R.D. 654, 87 L.R.R.M. (BNA) 2909 (N.D. Cal. 1974).

Opinion

MEMORANDUM OPINION

ORRICK, District Judge.

Plaintiff Souza challenges the pension plan requirements of the Trustees of the Western Conference of Teamsters Pension Trust. The terms of the plan require that before an employee is eligible for vested retirement benefits he must have worked a minimum of 15 years of service, and a minimum of 3,000 Covered Hours,1 ***and must have attained a requisite age 2 before a break in service. [656]*656If an employee has fulfilled these requirements, his pension rights will vest and he will be eligible to receive pension payments at age 60. Plaintiff in fact has worked well over the required number of years and hours. He has worked at least 22,848 Covered Hours and more than 22 years of unbroken service. However, plaintiff was denied any benefits under the pension plan because he had a break in service at age 48 at a time when the terms of the plan defined age 52 as the requisite age for eligibility. In this action, he is challenging the application of the “age-at-break-in-serviee” requirement to persons who have met the other requirements of the plan. Plaintiff claims the age requirement is arbitrary and unreasonable, and thus in violation of Section 302(c) (5) of the Labor Management Relations Act of 1947 (29 U.S.C. § 186(c)(5)).

Plaintiff seeks to bring this action as a class action on behalf of “himself and all former employees who were qualified for vested retirement benefits but for their lack of attainment of a particular age”. Although the complaint was filed one year ago, there has been no determination of the appropriateness of the class action. Defendants moved to have the Court determine now that this is not a proper class action, contending that (1) plaintiff’s interests are antithetical to the interests of the other class members he purports to represent, (2) plaintiff is financially incapable of paying the costs of the individualized notice to the class members required in this action, and (3) the class is unmanageable because all the members cannot adequately be identified. In response, plaintiff has moved to certify the class under Rule 23(b)(2) of the Federal Rules of Civil Procedure.

JURISDICTION

Before determining the propriety of the class action, the Court must first consider its jurisdiction under Section 302 of the Labor Management Relations Act (29 U.S.C. § 186 (1947)). The Act only permits employer payments to a pension trust fund if the fund is established for the sole and exclusive benefit of the employees and dependents (29 U.S.C. § 186(c)). Defendants argue that the Court only obtains jurisdiction over the pension fund after it has found a violation of the Act. The Court disagrees with this interpretation of the Act. Since plaintiff has alleged that the age requirement of the pension plan is arbitrary and that the plan is not for the sole and exclusive benefit of employees, the Court has jurisdiction under Section 186(c)(5) to determine if the statutory requirements of the Act have been met. If, after examining the merits, the Court finds a violation of the Act, under Section 186(e) the Court has jurisdiction to restrain any such violation. Lugo v. Employees Retirement Fund of Illumination Products Industry, 366 F.Supp. 99 (E. D.N.Y.1973).

CLASS ACTION

Rule 23(c)(1) of the Federal Rules of Civil Procedure requires that the Court shall determine whether an action may be maintained as a class action “as soon as practicable after the commencement of an action”. Although a full year passed after the filing of the complaint in this action before any motion by defendants or plaintiff was made for a determination of the class, as a general rule, delay in seeking certification is not grounds for denial. Feder v. Harrington, 52 F.R.D. 178 (S.D.N.Y. 1970). The Court finds that the one-year delay is not a bar to certification of the class in this action.

In order to be certified as a proper class under Rule 23 of the Federal Rules of Civil Procedure, all four requirements of Rule 23(a) of the Federal Rules of Civil Procedure must be met. In addition, one of the categories of [657]*657Rule 23(b) 3 of the Federal Rules of Civil Procedure must be satisfied. Rule 23(a)(1) of the Federal Rules of Civil Procedure establishes as the first prerequisite to a class action that “the class is so numerous that joinder of all members is impracticable”. In this action, discovery has revealed that neither plaintiff nor defendants can ascertain the exact number of employees who would have been eligible for vested retirement rights but for the age at break-in-service requirement of the plan. Estimates of the potential members of the purported class range into the 40 thousands. The Court finds that numerosity of the class makes a joinder of all members impracticable.

The second prerequisite of Rule 23(a) is that “there are questions of law or fact common to the class”. The only issue in this action is whether the age requirement of the pension plan is arbitrary and unreasonable and in violation of the Labor Management Relations Act. The Court finds this question is common to all members of the purported class.

The third requirement of Rule 23(a) is that the “claims or defenses of the representative parties are typical of the claims or defenses of the class”. Defendants contend that plaintiff, who was 48 years old at his break-in-service, has interests that are antithetical to the interests of all other age groups within the purported class. Defendants argue that since the pension fund is finite, the inclusion of additional members will reduce the amount of benefits available for others. Therefore, defendants argue that each age group’s interests are antithetical to the interests of other age groups since each group would want to exclude younger groups from eligibility in the fund.

Rule 23(a) does not require that the claims of the representative be identical to those of the class members, but that they be typical. If all the members of a purported class would be benefited by the suit the plaintiff seeks to bring, the requirement of typicality has been satisfied. Eisen v. Carlisle & Jacquelin, 391 F.2d 555 (2d Cir. 1968), aff’d in part, 417 U.S. 156, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974).

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Bluebook (online)
64 F.R.D. 654, 87 L.R.R.M. (BNA) 2909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/souza-v-scalone-cand-1974.