Thorpe v. Retirement Plan of the Pillsbury Co.

80 F.3d 439
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 4, 1996
DocketNos. 95-4030, 95-4033
StatusPublished
Cited by16 cases

This text of 80 F.3d 439 (Thorpe v. Retirement Plan of the Pillsbury Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thorpe v. Retirement Plan of the Pillsbury Co., 80 F.3d 439 (10th Cir. 1996).

Opinion

PAUL KELLY, Jr., Circuit Judge.

Defendants, the retirement and welfare plans of Pillsbury Company (“Pillsbury”) and the American Federation of Grain Workers (AFL-CIO-CLC) (“Union”), appeal the district court’s order granting summary judgment in favor of Plaintiff James T. Thorpe on the issue of whether Plaintiff was entitled to early retirement benefits under Defendants’ retirement and welfare plans. Plaintiff appeals the district court’s order granting summary judgment in favor of Defendants on the issue of whether Defendants’ actions constituted section 1024(b)(4) informational violations of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001-1371. Plaintiff also appeals the district court’s dismissal of two other claims alleging violations of ERISA and its failure to award Plaintiff a reasonable attorney’s fee and prejudgment interest. We exercise jurisdiction under 28 U.S.C. § 1291 and affirm on all issues.

Background

From 1966 until June 10, 1991, Plaintiff-Appellant James T. Thorpe was employed as a production worker at the Ogden, Utah plant of Pillsbury. During his tenure at Pillsbury, Plaintiff was represented by the American Federation of Grain Workers (AFL-CIO-CLC) (“Union”) and participated in both the Retirement Plan, provided by Pillsbury and the Union, and the Group Life and Health Insurance Plan for Hourly Employees Represented (“Welfare Plan”), provided by the Union. The Welfare Plan supplements the Retirement Plan by providing insurance and medical benefits for those participants qualifying for normal, early or disability retirement under the Retirement Plan. Both the Retirement and Welfare Plans are “employee welfare benefit plan[s]” or “welfare plan[s]” as defined by ERISA and therefore are governed by ERISA. 1 Aplt. App. 10127. The Retirement Plan is administered by a six-member board (“Board”), three members of which are appointed by the Union and three by Pillsbury. See Id. at 10189.

The dispute in this case primarily involves the interpretation of 11.3 of the Retirement Plan, a provision which offers early retirement benefits for qualifying participants in the event of a Pillsbury “plant closure.” Section 11.3 provides in pertinent part:

A Participant whose Continuous Service terminates as a result of a plant closure ... shall be entitled to receive a special early retirement benefit for life, if he has completed 25 or more years of Continuous Service at the time of the plant closure but has not attained his fifty-fifth birthday, with payments beginning on the first day [442]*442of tbe calender month during which his Continuous Service terminates.

Id. at 10214.

On June 10,1991, Pillsbury sold its Ogden, Utah facility to Cargill, Inc. (“Cargill”), discontinued its operations at the facility and laid off its employees; that very day, Cargill took over operation of the facility, answering phones, accepting deliveries and hiring new employees, one of whom was Plaintiff. Actual production under Cargill management began the next day. Sometime after Plaintiff joined Cargill, he and two other former Pillsbury employees (who were not employed by Cargill), all believing they were entitled to early retirement benefits under 11.3, filed claims with the Union. To resolve these claims, Pillsbury and the Union entered into a “Settlement Agreement and General Release” (“Settlement Agreement”), 1 Aplt.App. 10302, which was formalized as the “Amendment to the Retirement Plan of the Pillsbury Company and the American Federation of Grain Millers” (“Amendment”), id. at 10265. The Settlement Agreement and Amendment amended the Retirement Plan to provide special benefits to employees who had 25 years of experience with Pillsbury and were under the age of 55 (collectively known “Special Early Retirees”): (i) Special Early Retirees not offered employment by Cargill were entitled to pension and retiree health benefits as if they had attained the age of 55 on June 10, 1991, the date on which Pillsbury’s ownership of the plant ended; (ii) Special Early Retirees who were offered employment by Cargill, such as Plaintiff, were to receive pension benefits commencing at the age of 55 and a $10,000 lump sum payment. Id. at 10266, 10302 ¶ 2. Special Early Retirees opting to participate in the Settlement Agreement were required to sign a general release in favor of Pillsbury. Id. at 10302 ¶ 5.

Plaintiff refused to sign the release and instead, filed a claim with the Board requesting early retirement benefits under 11.3. The Board denied Plaintiffs claim after determining that the Ogden, Utah plant in fact had not closed. Plaintiff filed suit seeking review of the Board’s decision and alleging numerous ERISA violations. The district court granted Plaintiffs motion for summary judgment on the issue of whether the Ogden plant had closed; dismissed as moot Plaintiffs second claim, alleging that an amendment to the Retirement Plan violated ERISA by decreasing his accrued benefits; dismissed as moot Plaintiffs third claim, alleging that the Retirement and Welfare Plans violated ERISA by allowing different treatment for similarly situated employees; granted Defendants’ motion for summary judgment on the issue of whether Defendants’ actions constituted informational violations of ERISA; and denied Plaintiffs motion for attorney’s fees and costs. This appeal, together with various cross-appeals, followed.

Discussion

A. Standard of Review

1. Summary Judgment

We review de novo the district court’s grant of summary judgment, applying the same standard employed by the district court under Fed.R.Civ.P. 56. Blue Circle Cement, Inc. v. Board of County Comm’rs, 27 F.3d 1499, 1503 (10th Cir.1994). Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact, and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). In reviewing a party’s motion for summary judgment, the court construes all facts and reasonable inferences in the light most favorable to the nonmoving party. Headrick v. Rockwell International Corp., 24 F.3d 1272, 1275 (10th Cir.1994).

2. Denial of ERISA Benefits.

We review de novo a denial of benefits under an ERISA plan “unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan.” Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 115, 109 S.Ct. 948, 956-57, 103 L.Ed.2d 80 (1989). If a benefit plan does give an administrator discretionary authority to construe doubtful provisions of the [443]

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Bluebook (online)
80 F.3d 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thorpe-v-retirement-plan-of-the-pillsbury-co-ca10-1996.