Spearman v. General Motors Corp.

880 F. Supp. 617, 1994 U.S. Dist. LEXIS 20074, 1994 WL 779290
CourtDistrict Court, S.D. Indiana
DecidedJune 29, 1994
DocketIP 93-899 C
StatusPublished
Cited by4 cases

This text of 880 F. Supp. 617 (Spearman v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spearman v. General Motors Corp., 880 F. Supp. 617, 1994 U.S. Dist. LEXIS 20074, 1994 WL 779290 (S.D. Ind. 1994).

Opinion

BARKER, Chief Judge.

Defendants General Motors Corporation, Delco Remy Division of the General Motors Corporation, and the Trustees for General Motors National Retirement Benefit Center (“Defendants” or “GM”) move for summary judgment on Plaintiff Edgar M. Spearman’s (“Spearman”) Complaint based on res judica-ta and the statute of limitations. For the reasons discussed below, the Court grants summary judgment on the breach of fiduciary duty ERISA claim and denies summary judgment with regard to all remaining claims.

I. BACKGROUND

Mr. Spearman, an Indiana resident, worked at General Motors for over thirty years and was, before his termination, a maintenance supervisor in one of GM’s Delco Remy Division plants in Anderson, Indiana. Around March 29, 1985, General Motors discharged Spearman for allegedly using his position to benefit a family member — his stepson. A round of litigation ensued, with the Indiana Court of Appeals ultimately affirming the Indiana Employment Security Division’s decision that Spearman was not discharged from his employment for just cause.

Soon thereafter, Spearman, alleging wrongful discharge and defamation, sued the Delco Remy Division of General Motors (“Delco Remy”) in Madison Superior Court. After defendant removed the case to federal court, the district court dismissed Spear-man’s Complaint. Now, Spearman has brought suit, claiming that General Motors discharged him to deprive him of his full pension benefits and retirement rights. Spearman also alleges that GM and its pension trustees and administrators breached their fiduciary duties to him by not providing proper benefits to him after he had made repeated demands as recently as February 1993. See Complaint, at ¶ 12. Both claims are based on the Employee Retirement Income Security Act (“ERISA”) 1 .

II. DISCUSSION

A. Summary Judgment Standard

In passing on a motion for summary judgment, the judge’s role is not to evaluate the weight of the evidence or determine the truth of the matter, but it is instead to decide whether there is a genuine issue for trial. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The burden rests squarely on the party moving for summary judgment to show “that there is an absence of evidence to support the nonmoving party’s case.” Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). If doubts remain as to the existence of a material fact, then those doubts should be resolved in favor of the nonmoving party and summary judgment denied. See Wilson v. Williams, 997 F.2d 348, 350 (7th Cir.1993); Wolf v. City of Fitchburg, 870 F.2d 1327, 1330 (7th Cir.1989).

*619 B. Res Judicata

The Court first addresses Spear-man’s contention that General Motors waived the affirmative defense of res judicata by not pleading it in original answer. Generally, a district court will give leave to amend a pleading absent undue delay, bad faith or dilatory motives. See Ferguson v. Roberts, 11 F.3d 696 (7th Cir.1993). Here, Defendant filed its amended answer two days after its original answer and within 20 days after it was served. The Court finds that under Fed.Rule of Civil Procedure 15(a), General Motors is entitled to amend its original answer to include the affirmative defense of res judicata.

Next, we consider whether res judica-ta bars the instant action. In E.E.O.C. v. Harris Chernin, Inc., 10 F.3d 1286, 1289 (7th Cir.1993), the Seventh Circuit noted that “[r]es judicata is comprised of three essential elements: (1) a final judgment on the merits in an earlier action; (2) an identity of the cause of action in both the earlier and later suit; and (3) an identity of parties or privies in the two suits.” The parties do not dispute elements 1 and 3, but differ as to whether the current action is identical to the previously dismissed state and federal court actions.

General Motors argues that the instant suit is identical to the previous one because they are based on largely the same factual predicate, namely Spearman’s discharge from Delco Remy. Moreover, GM argues that Spearman could have raised the ERISA claims in his previous federal suit and is barred from raising similar claims now. Spearman responds that the current suit differs from his previous one because the ERISA claims raised in this suit were not and could not have been alleged in the previous suit. In support of this position, he points to the fact that even after the Indiana Court of Appeals decision, GM “refused to adjust and to pay his proper pension benefits, which have necessitated this ligitation (sic).” Plaintiff’s Memorandum, at 5. GM responds that when Spearman was offered a pension of $326.00 per month, he “knew or should have known the supplement was being denied to him as a consequence of his being discharged.” GM’s Brief in Support of Summary Judgment, at 9.

Recent Seventh Circuit cases have set forth helpful, albeit not necessarily disposi-tive, criteria for analyzing when two causes of action are to be deemed one. In Herrmann v. Cencom Cable Associates, Inc., 999 F.2d 223, 226 (7th Cir.1993), Chief Judge Posner suggested that “two claims are one for purposes of res judicata if they are based on the same, or nearly the same, factual allegations.” In holding that an earlier action under COBRA was not res judicata in a later Title VII action, he noted that one set of facts dealt with the “conduct of the defendant leading up to the plaintiffs discharge, while the other facts ... concerned] the processing of [plaintiffs] request for continued benefits after she was discharged.” 999 F.2d at 227. The Court refused to address “[t]he difficult intermediate eases — where there is substantial factual overlap between the two claims, but not ... a complete or nearly complete lack of overlap ...” Id.

In Doe v. Allied-Signal, Inc., 985 F.2d 908, 913 (7th Cir.1993), the Seventh Circuit set forth a “transactional” analysis:

This Court analyzes causes of action according to the so-called “same transaction” test, (citations omitted). Under the same transaction test, a cause of action consists of a “single core of operative facts” giving rise to a remedy. Car Carriers, Inc. v. Ford Motor Co., 789 F.2d 589

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