Sweet v. Consolidated Aluminum Corp.

913 F.2d 268, 1990 WL 116069
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 14, 1990
DocketNos. 88-1517, 88-1518
StatusPublished
Cited by32 cases

This text of 913 F.2d 268 (Sweet v. Consolidated Aluminum Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sweet v. Consolidated Aluminum Corp., 913 F.2d 268, 1990 WL 116069 (6th Cir. 1990).

Opinions

MEREDITH, District Judge.

This appeal raises two issues regarding attorney fees and costs and whether the plaintiff-appellant is entitled to pre-judgment interest on pension benefits from the date of the appointment of the special administrator.

The appeal stems from a claim for pension benefits made by the plaintiff-appellant, Carl D. Sweet, Personal Representative of the Estate of Edward Joseph Sweet.

Edward Joseph Sweet, deceased, was a former employee of Miller Industries. Defendant, Consolidated Aluminum Corporation, is the successor to Miller Industries. Manufacturers Hanover Trust is the Trustee of the pension plan in which the decedent had a vested interest through his employment. Edward Joseph Sweet retired from Consolidated in 1973 and elected payment of his retirement allowances as a lifetime payment with a ten year guarantee. Under this election, Mr. Sweet was to receive monthly installment payments of $208.28 commencing on April 1, 1973 with a guaranteed ten year payment period. Mr. Sweet collected his monthly retirement pension benefits through September 1, 1975, at which time payments ceased to be made by Manufacturers Hanover.

Edward Joseph Sweet disappeared on or about May 12, 1975. The facts surrounding his disappearance were submitted by affidavit of Carl Sweet to Probate Court for the County of Berrien in File No. 27505(L). On November 10, 1975, Carl Sweet was appointed Special Administrator of the Estate of Edward Joseph Sweet. (Carl Sweet, son of Edward J. Sweet, was named beneficiary under the pension plan.) Under the terms of the Probate order, the Special Administrator “shall collect and take charge of the Estate of Edward Joseph Sweet until the fact of death or survival of Mr. Sweet can be satisfactorily established.”

After notification by plaintiffs attorney of the probate order, by letter dated November 26, 1975, C.O. Griffin, Treasurer of Miller Industries, informed counsel for plaintiff that the Trustee, Manufacturers Hanover, was holding the pension checks until a determination could be made as to Mr. Sweet’s whereabouts. A second request was made by plaintiff’s attorney by letter sent December 19, 1975, but no pension checks were received.

After plaintiff petitioned the Probate Court, an Order was entered January 18, 1984, finding that Edward Joseph Sweet’s date of death was determined to be May 11, 1982. On May 14, 1984, a complaint was filed in the United States District Court, Western District of Michigan, for pension benefits, interest, costs and attorney fees. On or about December 17, 1985, the parties agreed that $19,578.32, the payment representing 94 months of $208.28 per month, was due and owing. These monies were paid by the defendant to the plaintiff.

[270]*270The District Court rendered an opinion and judgment on March 18, 1988, awarding pre-judgment interest, calculated pursuant to 28 U.S.C. § 1961(a), from the date the complaint was filed until the settlement money was paid. (R. 28, Opinion at 6; R. 29, Judgment.) The District Court declined, however, to award plaintiff costs and attorney fees. (R. 28, Opinion at 7; R. 29 Judgment.) It is from this Opinion and Judgment that the plaintiff appeals.

Defendant Consolidated Aluminum Corporation additionally filed a cross-appeal based upon the District Court’s denial on November 7, 1984 of Consolidated’s motion to dismiss for plaintiff’s failure to state a claim. This issue on cross-appeal will likewise be discussed, infra.

Plaintiff-appellant urges that the District Court erred in denying pre-judgment interest on the pension benefits from the date of the appointment of the Special Administrator, November 10, 1975. As stated, supra, the District Court allowed pre-judgment interest from the date the complaint was filed, May 14, 1984. The plaintiff-appellant, under the auspices of Bricklayers’ Pension Trust Fund v. Taiariol, 671 F.2d 988 (6th Cir.1982) and Gavie v. Stroh Brewery Company, 668 F.Supp. 608 (E.D.Mich.1987), insists that the pre-judgment interest award should begin on the date of appointment of the Special Administrator, November 10, 1975. Bricklayers’ Pension, supra, recognizes the ability of the court to grant pre-judgment interest. Gav-ie, supra, found an entitlement to pre-judgment interest was due the plaintiffs “only if they had an unqualified right to immediate receipt of the funds.” Gavie, 668 F.Supp. at 614. Another case cited as authority by the plaintiff-appellant, Short v. Central States, Southeast and Southwest Areas Pension Fund, 729 F.2d 567 (8th Cir.1984), holds that interest is due from the date on which the beneficiary is “entitled” to the funds.

The plaintiff-appellant relies on the language of the Berrien County Probate Court Order dated November 10, 1975, which states the duty of the Special Administrator, Carl D. Sweet. The Probate Court therein stated that the Special Administrator “[sjhall collect and take charge of the Estate of Edward Joseph Sweet until the fact of death or survival of Edward Joseph Sweet can be satisfactorily established.” (R. 28, Opinion at 2). This Court agrees with the plaintiff-appellant that he had an unqualified right to the receipt of Edward Joseph Sweet’s monthly pension payments beginning from the day the Berrien County Probate Court specified its Order as recited, supra. That Order appointed Carl D. Sweet, named beneficiary and son of Edward Joseph Sweet, Special Administrator of the Estate. As such, the Special Administrator was “entitled” to the pension funds. The Special Administrator stood at that instant in a fiduciary position as to the Estate of Edward Joseph Sweet. By that same order, Manufacturers Hanover was obligated to proceed making payments to said Special Administrator.

The plaintiff-appellant is correct in its contention that ERISA requires that a retirement plan be operated for the exclusive benefit of the employees and beneficiaries. The defendant-appellee contends that the Trustee, Manufacturers Hanover, did not benefit from the withholding of the funds until December of 1985. This Court respectfully disagrees. Even assuming ar-guendo that the Trustee was acting prudently in withholding the pension funds until December of 1985, it cannot be said that this did not confer a benefit on the trustee. Any additional time one gains, rightfully or wrongfully, in not having to submit payment of a sum of money owed another is without doubt a benefit. Moreover, the payee, plaintiff-appellant herein, has been deprived of the benefit of those payments. As was stated in Short, supra, 729 F.2d at 576, “To allow the Fund to retain the interest it earned on funds wrongfully withheld from a beneficiary would be to approve of an unjust enrichment. Further, the relief granted would fall short of making the beneficiary whole because he has been denied the use of money which was his.”

The District Court correctly concluded that the plaintiff, Carl Sweet, was [271]*271entitled to an award of pre-judgment interest. However, its limitation to interest from the date of filing this lawsuit in the District Court was an abuse of discretion.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dery v. Karafa (In re Dearborn Bancorp, Inc.)
583 B.R. 395 (E.D. Michigan, 2018)
Feldman's Medical Center Pharmacy, Inc. v. Carefirst, Inc.
823 F. Supp. 2d 307 (D. Maryland, 2011)
Nichols v. Unum Life Insurance Co. of America
287 F. Supp. 2d 1088 (N.D. California, 2003)
Henderson v. Transamerica Occidental Life Insurance
120 F. Supp. 2d 1278 (M.D. Alabama, 2000)
Detroit Diesel Corp. v. Lane-Smith
39 F. Supp. 2d 852 (E.D. Michigan, 1999)
Muller v. First Unum Life Insurance
23 F. Supp. 2d 231 (N.D. New York, 1998)
Snow v. Aetna Insurance
998 F. Supp. 852 (W.D. Tennessee, 1998)
Cottrill v. Sparrow, Johnson & Ursillo, Inc.
100 F.3d 220 (First Circuit, 1996)
Forbau Ex Rel. Miller v. Aetna Life Insurance Co.
876 S.W.2d 132 (Texas Supreme Court, 1994)
Yarde v. Pan American Life Insurance
840 F. Supp. 406 (D. South Carolina, 1994)
Tiemeyer v. Community Mutual Insurance
8 F.3d 1094 (Sixth Circuit, 1993)
Health Cost Controls v. Wardlow
825 F. Supp. 152 (W.D. Kentucky, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
913 F.2d 268, 1990 WL 116069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sweet-v-consolidated-aluminum-corp-ca6-1990.