Tevini v. CHC International, Inc.

946 F. Supp. 985, 1996 U.S. Dist. LEXIS 17625, 1996 WL 592652
CourtDistrict Court, S.D. Florida
DecidedSeptember 30, 1996
DocketNo. 96-0344-Civ
StatusPublished

This text of 946 F. Supp. 985 (Tevini v. CHC International, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tevini v. CHC International, Inc., 946 F. Supp. 985, 1996 U.S. Dist. LEXIS 17625, 1996 WL 592652 (S.D. Fla. 1996).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

HOEVELER, Senior District Judge.

This cause comes before the Court on Defendant CHC International, Inc.’s (“CHC”) Motion to Dismiss (D.E. #4) and Plaintiffs Motion to Convert Defendant’s Motion to Dismiss to a Motion for Summary Judgment (D.E. # 5).

BACKGROUND

Defendant, CHC1 is engaged in the business of managing hotels, resorts and casinos. Beginning in 1984, Plaintiff Helmut R. Tevini was employed by Defendant as the Food and Beverage Director at the Bonaventure Resort and Spa in Fort Lauderdale, Florida, a resort which Defendant managed for an unrelated ownership group. Subsequently, in 1988, Plaintiff was promoted to Defendant’s corporate headquarters as the “Regional Director, Food and Beverage Operations”. As the Regional Director, Plaintiff supervised the food and beverage operations of approximately ten to eighteen hotels.

During February of 1995, Plaintiff was “involuntary relieved of his duties as Regional Director ... and reassigned from CHC’s corporate headquarters to the Bonaventure as its Director of Catering and Conference Services, a position which he had overseen as the Bonaventure’s Food and Beverage Director.” Plaintiffs Complaint at p. 4. On November 3, 1995, Bonaventure’s General Manager issued a memorandum to Plaintiff critical of his “style of management.” Exhibit A of Plaintiffs Complaint. On December 14, 1995, Plaintiff submitted his written resignation to Defendant. Exhibit B of Plaintiffs Complaint.

Following his resignation, Plaintiff filed a two count complaint against Defendant alleging violations of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001, et seq. (1995). In Count I, Plaintiff contends he was wrongfully denied severance compensation under an ERISA severance plan. In Count II Plaintiff asserts that Defendant unlawfully refused to pay him deferred compensation under an ERISA pension plan.

Defendant seeks to dismiss Count I on the basis that this Court is without jurisdiction to entertain Plaintiff’s claim for severance benefits. Defendant moves to dismiss Count II on the grounds that Plaintiff has failed to state a claim for denial of any ERISA-gov-emed pension plan.

MOTION TO DISMISS STANDARD

A defendant’s motion to dismiss for failure to state a claim should be granted 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). All that the Federal Rules of Civil Procedure require is a short and plain statement of the claim that will give the defendant fair notice of what the plaintiff’s claim is and the [987]*987grounds upon which it rests. Id. In evaluating the sufficiency of the claim, all facts stated in the complaint are accepted as true, Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 2232-33, 81 L.Ed.2d 59 (1984), factual issues are to be resolved in favor of the plaintiff, Quinones v. Durkis, 638 F.Supp. 856, 858 (S.D.Fla.1986), and the prospect of recovery is irrelevant. In re Asbestos Litigation, 679 F.Supp. 1096, 1098 (S.D.Fla.1987). With these principles in mind, the Court will consider the arguments advanced by the Defendants seeking the dismissal of the various counts.

ANALYSIS

Count I — Severance Plan

In Count I of his Complaint, Plaintiff alleges Defendant has established a “CHC Severance Compensation Plan”, as defined in § 3(1) of ERISA, 29 U.S.C. § 1002(1), which has paid severance compensation to several employees of Defendant. Plaintiff argues Defendant’s refusal to pay him severance compensation violates the “CHC Severance Compensation Plan”.

To establish federal jurisdiction, the complaint must allege such facts as will show the establishment or maintenance of a “plan, fund, or program” of the type covered by ERISA. Dees v. PrimeHealth, 894 F.Supp. 1549, 1552 (S.D.Ala.1995). In Donovan v. Dillingham, 688 F.2d 1367 (11th Cir.1982) (en banc), the Eleventh Circuit established the following criteria to determine if a plan has been established:

[A] plan, fund or program under ERISA is established if from the surrounding circumstances a reasonable person can ascertain the intended benefits, a class of beneficiaries, the source of financing, and procedures for receiving benefits.

Donovan, 688 F.2d at 1373.

Plaintiffs Complaint fails to allege facts which would justify this Court in concluding Defendant established a severance compensation plan. Whether or not Plaintiff can show that Defendant has met the requirements under Donovan for establishing and maintaining an ERISA plan is a matter to be addressed, if at all, later in these proceedings. However, in order to survive a Motion to Dismiss Plaintiff must show that he has alleged in his complaint facts that, if true, state a claim under ERISA. Thus, Plaintiff must in his Complaint allege facts that, if true, satisfy the Donovan standard. Nowhere in the Complaint does Plaintiff allege facts that establish that a reasonable person could ascertain the plan’s intended benefits, class of beneficiaries, source of financing, and procedures for receiving benefits. Accordingly, Defendant’s Motion to Dismiss Count I is GRANTED.

Count II — Pension Plan

In Count II of the Complaint, Plaintiff asserts that Defendant established an employee pension benefit plan referred to by the Plaintiff as the “CHC Deferred Compensation Plan.” In Paragraph 26 of Plaintiffs Complaint, Plaintiff alleges:

Tevini was a “participant”, as that term is defined by § 3(7) of ERISA, 29 U.S.C.’ § 1002 (70, in the CHC Deferred Compensation Plan and, prior to his resignation, had worked for TCC and CHC for more than eleven (11) years.) CHC was and is the “sponsor”, as that term is defined by § 3(16)(b) of ERISA, 29 U.S.C. § 1002(16)(b), of the CHC Deferred Compensation Plan.

Plaintiff contends Defendant has violated the “CHC Deferred Compensation Plan” and that he is owed benefits under the plan. Defendant, in its Motion to Dismiss, asserts that Plaintiff fails to allege in its Complaint that “he was entitled to benefits, applied for them and was denied.” Defendant’s Motion to Dismiss at p. 9. Defendant farther argues that, even accepting every allegation in the Complaint as true, Plaintiff has failed to state a claim for denial of any pension benefits under ERISA, because Plaintiff is forty-seven (47) years old and would not be entitled to receive any compensation under the pension plan until he is sixty-five (65).

The plan in question provides compensation for those members of the plan who.

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Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Hishon v. King & Spalding
467 U.S. 69 (Supreme Court, 1984)
Grady Roper and Robert L. Benton v. Pullman Standard
859 F.2d 1472 (Eleventh Circuit, 1988)
Quinones v. Durkis
638 F. Supp. 856 (S.D. Florida, 1986)
In Re Asbestos Litigation
679 F. Supp. 1096 (S.D. Florida, 1987)
Dees v. Primehealth
894 F. Supp. 1549 (S.D. Alabama, 1995)
Donovan v. Dillingham
688 F.2d 1367 (Eleventh Circuit, 1982)
Fine v. Semet
699 F.2d 1091 (Eleventh Circuit, 1983)

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Bluebook (online)
946 F. Supp. 985, 1996 U.S. Dist. LEXIS 17625, 1996 WL 592652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tevini-v-chc-international-inc-flsd-1996.