Spitzmueller v. Burlington Northern Railroad

740 F. Supp. 671, 1990 U.S. Dist. LEXIS 7952, 1990 WL 88733
CourtDistrict Court, D. Minnesota
DecidedJune 29, 1990
DocketCiv. 4-88-1039
StatusPublished
Cited by5 cases

This text of 740 F. Supp. 671 (Spitzmueller v. Burlington Northern Railroad) 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
Spitzmueller v. Burlington Northern Railroad, 740 F. Supp. 671, 1990 U.S. Dist. LEXIS 7952, 1990 WL 88733 (mnd 1990).

Opinion

ORDER

ROSENBAUM, District Judge.

Defendant moves to dismiss this cause, pursuant to Rule 12(b), Federal Rules of Civil Procedure (Fed.R.Civ.P.) or, in the alternative, for summary judgment pursuant to Rule 56, Fed.R.Civ.P. The Court has considered affidavits and documents outside the pleadings and, therefore, treats defendant’s motion as one for summary judgment pursuant to Rule 56. Having considered these items and the arguments of counsel, the Court grants defendant’s motion for summary judgment.

Facts

In 1967, several railroads merged to become the Burlington Northern Railroad Company. The merger was approved by the Interstate Commerce Commission (ICC). The ICC, however, imposed specific labor protection benefits (the Northern Lines protective conditions, 331 ICC 228 (1967), aff'd, 296 F.Supp. 853 (D.D.C.1968), aff'd sub nom., United States v. ICC, 396 U.S. 491, 90 S.Ct. 708, 24 L.Ed.2d 700 (1970)) which inured to all employees of the railroads. Among these conditions was a guarantee that certain benefits, calculated at a particular rate, were to be paid to employees affected by any reduction in force at the railroads. 49 U.S.C. § 11347.

Plaintiff was employed by defendant from October, 1953, to October, 1986, when his position was abolished. From 1965 on, plaintiff held non-union, exempt positions. When his position was abolished, plaintiff was given three options: (1) to exercise seniority and obtain a new position pursuant to a collective bargaining agreement with defendant; (2) remain an exempt employee without job duties and with a reduced compensation equivalent to plaintiff’s benefit guarantees under the Northern Lines protective conditions; or (3) enter into a settlement and release with defendant. It is plaintiff’s claim that officers of defendant advised him the third option would be most beneficial, that he relied heavily on those representations, and that he has been injured thereby.

Initially, following the abolishment of his position, plaintiff apparently began receiving benefits as computed pursuant to the Northern Lines merger (option two of defendant’s proposals). Defendant also sent a proposed settlement and release form to plaintiff for his consideration (pursuant to option three of defendant’s proposals).

Plaintiff admits that he hired an attorney to assist him in considering the prospective agreement and release. He contends, however, that he hired the attorney solely “for the express purpose of confirming the written terms of the agreement BN had proposed to me ... [such as] clarifying with BN questions regarding the receipt of ben *674 efits, deductions to be taken for Railroad Retirement, and the timing and amount of the severance payment.” Plaintiffs affidavit, 1124. In his affidavit plaintiff states he “did not retain [the attorney] to negotiate on my behalf or advise me regarding any aspect of the other options presented to me by BN.” Id.

Plaintiff agreed to sign the settlement and release agreement. He did so after further negotiations concerning the terms of the agreement. Pursuant to the agreement, plaintiff was paid $78,350.22 plus reimbursements originally taken as deductions pursuant to the Rail Passenger Service Act, 45 U.S.C. § 565. Plaintiff also negotiated the payment of his attorney’s fees. By its terms the final settlement released defendant from all claims relating to plaintiffs’ employment and retirement.

In August, 1985, another exempt employee of defendant — Mr. George W. Landis— brought suit in the United States District Court for the Western District of Washington challenging defendant’s interpretation of the protective conditions. Mr. Landis alleged defendant’s interpretation breached the 1967 merger agreement. The district court referred the issue to the ICC.

In December, 1986, the ICC concluded defendant misinterpreted the protective conditions and applied an incorrect formula for determining guaranteed benefits. The ICC’s decision is generally referred to as Landis I. 1 Roughly one and a half years later, in April, 1988, the ICC promulgated the correct measure for determining the guarantees. This latter decision is known as Landis II. 2

Following Landis /, defendant sent a copy of the ICC’s decision to all exempt employees, including plaintiff. Plaintiff received the decision in February, 1987, prior to the date he cashed his release consideration check. Plaintiff acknowledges cashing his Railroad Retirement Act reimbursement following this first notice.

Defendant also sent a notice of the Landis II decision to all exempt employees. Defendant alleges plaintiff continued to accept the benefits of the settlement and release agreement after the Landis II decision was handed down and distributed.

Plaintiff brings this action seeking to rescind the release he signed in December, 1986. He claims he would not have entered into the settlement had he known of the Landis litigation. He alleges in Counts I and II that defendant has breached the ICC’s Northern Lines merger regulations and protective conditions and 49 U.S.C. § 11347. Plaintiff further alleges in Count III that defendant has breached the Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq. In particular, plaintiff contends defendant has breached sections 1140 and 1141 of Title 29. In Count IV, plaintiff contends the release is invalid because defendant misled him by failing to apprise him of the Landis litigation — which had not yet been decided by the ICC — during the negotiation of the release. In Counts V and VI, plaintiff alternatively alleges the release is invalid because it was made under a unilateral mistake or a mutual mistake. As in Count IV, plaintiff alleges the release is unenforceable since defendant knew of the pendency of the Landis case and he did not.

Defendant responds by arguing the release is valid and plaintiff’s claims are, therefore, barred. In particular, defendant notes the release is supported by consideration and was signed by plaintiff with full knowledge of its ramifications. In the alternative, defendant suggests plaintiff’s claims in Counts I and II should be referred to the ICC for determination prior to consideration of Counts III through VI. 3

Analysis

I. Summary Judgment Standard

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Cite This Page — Counsel Stack

Bluebook (online)
740 F. Supp. 671, 1990 U.S. Dist. LEXIS 7952, 1990 WL 88733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spitzmueller-v-burlington-northern-railroad-mnd-1990.