Thomas Kairys v. Southern Pines Trucking Inc

75 F.4th 153
CourtCourt of Appeals for the Third Circuit
DecidedJuly 25, 2023
Docket22-1783
StatusPublished
Cited by11 cases

This text of 75 F.4th 153 (Thomas Kairys v. Southern Pines Trucking Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas Kairys v. Southern Pines Trucking Inc, 75 F.4th 153 (3d Cir. 2023).

Opinion

PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT ____________

Nos. 22-1783 & 22-2055 ____________

THOMAS J. KAIRYS

v.

SOUTHERN PINES TRUCKING, INC., Appellant ____________

On Appeal from the United States District Court For the Western District of Pennsylvania (D.C. No. 2-19-cv-01031) District Judge: Honorable J. Nicholas Ranjan ____________

Argued on April 20, 2023

Before: HARDIMAN, PORTER, and FISHER, Circuit Judges.

(Filed: July 25, 2023)

Audrey J. Copeland [Argued] Marshall Dennehey Warner Coleman & Goggin 620 Freedom Business Center, Suite 405 King of Prussia, PA 19406

Teresa O. Sirianni Marshall Dennehey Warner Coleman & Goggin Union Trust Building, Suite 700 501 Grant Street Pittsburgh, PA 15219 Counsel for the Appellant

Christine T. Elzer [Argued] Tamra Van Hausen Elzer Law Firm, LLC 100 First Avenue, Suite 1010 Pittsburgh, PA 15222 Counsel for the Appellee

___________

OPINION OF THE COURT ____________

HARDIMAN, Circuit Judge.

Southern Pines Trucking, Inc. (Southern Pines or the Company) appeals the District Court’s judgment for Thomas Kairys on his retaliation claim under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq. Southern Pines also challenges the Court’s award of $111,981.79 in attorneys’ fees and costs. For the reasons that follow, we will affirm.

2 I

A

In March 2016, the owner and Chief Executive Officer of Southern Pines, Pat Gallagher, recruited Kairys to serve as Vice President of Sales to help the Company grow its cryogenic trucking services. Southern Pines had just two other employees when Kairys joined the Company: Bob Gallagher (Pat’s brother and the Vice President of Operations) and a truck fleet manager. Soon after he started working for Southern Pines, Kairys was diagnosed with degenerative arthritis and required hip replacement surgery. Kairys notified his supervisor, Chad Vittone—the Chief Financial Officer of PGT Trucking, an affiliated business also owned by Pat Gallagher— that he would use a week of vacation time. Vittone said that was “no problem,” so Kairys had the surgery on November 30, 2017. Kairys missed seven days of work.

The Southern Pines employee health insurance plan with the University of Pittsburgh Medical Center (UPMC) covered Kairys’s surgery. Because the Company was self- insured, it paid a portion of each claim made under the UPMC policy. Kairys’s surgery caused the Company’s health insurance costs to rise markedly. The claims invoice paid for the week of December 10–16, 2017, shortly after Kairys’s hip replacement, totaled $23,277.07, with $13,394.94 billed to employee payroll code “SP01.” That invoice was the highest weekly amount in a six-month period by nearly $8,000. And the SP01 row was highlighted on every healthcare invoice that Southern Pines produced in discovery.

According to Kairys’s trial testimony, after he returned to work in December 2017, Bob Gallagher told him to “lay

3 low” because Pat was upset about Kairys’s surgery. App. 320. Four months later, on April 23, 2018, Pat fired Kairys. Pat claimed that Kairys’s position was eliminated because Southern Pines had “maxed out” its sales potential in cryogenic trucking and was unwilling to buy more equipment, particularly because qualified drivers were hard to find. App. 475–76. Less than two months after Kairys’s termination, the Company hired Kyle Kunkle, an employee of PGT, to work part-time for Southern Pines in a hybrid role. Kunkle mainly helped the Company with operations, but he also did some sales maintenance, like helping entertain Southern Pines customers. Maintaining customer relationships had been part of Kairys’s role before he was terminated.

B

Kairys sued Southern Pines, alleging that his termination was discriminatory and retaliatory contrary to various state and federal statutes. His six claims included: discrimination and retaliation under the Americans with Disabilities Act (Count I); discrimination under the Age Discrimination in Employment Act (Count II); retaliation under ERISA (Count III); breach of contract (Count IV); violation of the Pennsylvania Wage Payment and Collection Law (WPCL) (Count V); and discrimination and retaliation under the Pennsylvania Human Relations Act (PHRA) (Count VI).

After discovery, the Company moved for summary judgment on all counts. Kairys cross-moved for partial summary judgment only as to his breach of contract and WPCL claims (Counts IV and V). The District Court denied the Company’s motion and granted in part Kairys’s cross-motion. It determined that a reasonable factfinder could conclude that

4 the Company retaliated or discriminated against Kairys in violation of the ADA, ADEA, ERISA, and PHRA. It also determined that Southern Pines breached its contract with Kairys, but it reserved the damages determination for the jury. The Court denied summary judgment to Kairys on the WPCL claim.

The case proceeded to trial, and the jury found for Southern Pines on Kairys’s claims under the ADA, ADEA, and PHRA. The jury also returned an advisory verdict for the Company on the ERISA claim, finding that Kairys did not prove by a preponderance of the evidence that Southern Pines retaliated against him for exercising his right to ERISA- protected benefits or interfered with his right to future benefits. That verdict was only advisory because Kairys had no right to a jury trial on his ERISA claim for equitable relief. See Pane v. RCA Corp., 868 F.2d 631, 636 (3d Cir. 1989). Kairys prevailed on his WPCL claim and the jury awarded him $5,384.62 in separation pay, which included damages on Kairys’s breach of contract claim.

The parties then briefed the ERISA claim to the District Court. Southern Pines asked the District Court to adopt the advisory verdict because Kairys failed to prove his case on that claim. The District Court disagreed. The Court observed that “the jury made no specific findings of fact,” and explained that it would independently consider the trial evidence to evaluate the ERISA claim. Kairys v. S. Pines Trucking, Inc., 595 F. Supp. 3d 376, 380 (W.D. Pa. 2022). The Court then found that Kairys had proved by a preponderance of the evidence that the Company retaliated against him for using ERISA-protected benefits and interfered with his right to future benefits. The Court awarded Kairys $67,500 in front pay and determined that he was entitled to reasonable attorneys’ fees and costs.

5 Kairys petitioned for those fees and costs under 29 U.S.C. § 1132(g), and the District Court awarded $111,981.79. Southern Pines timely appealed the judgment on the ERISA claim and the order awarding fees and costs, and we consolidated the appeals.

II

The District Court had subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1367. We have jurisdiction under 28 U.S.C. § 1291. We review the District Court’s factual findings, including its finding of intentional discrimination, for clear error. See Anderson v. City of Bessemer City, 470 U.S. 564, 573 (1985); Fed. R. Civ. P. 52

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