Trull v. Dayco Products, LLC

178 F. App'x 247
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 28, 2006
Docket04-2109, 05-1591
StatusUnpublished
Cited by3 cases

This text of 178 F. App'x 247 (Trull v. Dayco Products, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trull v. Dayco Products, LLC, 178 F. App'x 247 (4th Cir. 2006).

Opinion

Affirmed by unpublished PER CURIAM opinion.

Unpublished opinions are not binding precedent in this circuit. See Local Rule 36(c).

PER CURIAM:

In these consolidated appeals, the defendants challenge two injunctions barring their efforts at collecting health insurance premiums from members of the plaintiff class. The plaintiffs are retirees who worked at defendant Dayco Products, LLC’s (“Dayco”) now-closed plant in Waynesville, North Carolina. They brought this class action under section 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C.A. § 185 (West 1998), and section 502(a)(1) and (3) of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C.A. § 1132(a)(1), (3) (West 1999), against Dayco and related entities (collectively, “Defendants”) to enforce vested rights to lifetime medical insurance created by a series of collective bargaining agreements. Finding no reversible error, we affirm.

I.

The first injunction barred Defendants from seeking payment of insurance premiums from a subclass of plaintiffs known as Subclass A, generally consisting of employees who retired under agreements prior to 1995 (the “Subclass A Injunction”). The district court entered the Subclass A Injunction based on a jury’s determination that the Subclass A plaintiffs were entitled to vested, lifetime medical benefits at no cost for health insurance premiums and at the level of benefits in existence at the dates of retirement.

We reject Defendants’ argument that the injunction was improper because the plaintiffs’ claims are time-barred. Because the LMRA and ERISA do not contain an express statute of limitations governing plaintiffs’ claims, we apply the most analogous limitations period of the forum state’s law. See Dameron v. Sinai Hosp. of Baltimore, Inc., 815 F.2d 975, 981 (4th Cir.1987). The plaintiffs commenced their action in the Southern District of Ohio, where Dayco maintained its headquarters, making the Ohio statute of limitations for breach of contract the most analogous statute of limitations under Ohio law. See Ohio Rev.Code Ann. § 2305.06; see also Meade v. Pension Appeals & Review Comm., 966 F.2d 190, 194-95 (6th Cir. 1992). The transfer to the Western District of North Carolina “[f]or the convenience of parties and witnesses,” pursuant to 28 U.S.C.A. § 1404(a) (West 1993), is irrelevant to this analysis, since the goal of § 1404(a) is to “accomplish^ ] ‘but a change of courtrooms.’ ” See Eckstein v. Balcor Film Investors, 8 F.3d 1121, 1127 (7th Cir.1993) (concluding that “[wjhen the law of the United States is geographically nonuniform, a transferee court should use the rule of the transferor forum”) (quoting Van Dusen v. Barrack, 376 U.S. 612, 639, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964)).

We also disagree with Defendants’ contention that there was insufficient evidence to support the jury’s conclusion that the Subclass A plaintiffs had a vested entitlement to lifetime benefits. In Keffer v. H.K. Porter Co., 872 F.2d 60 (4th Cir. *250 1989), a case involving claims under the LMRA and ERISA, we explained:

In determining whether an employer’s obligation to provide benefits to its retirees or their surviving spouses continues beyond the expiration of the collective bargaining agreement, we look to the parties’ intent as expressed in their agreement. While the question therefore is primarily one of contract interpretation, collective bargaining agreements are not interpreted under traditional rules of contract but under a federal common law of labor policy. Therefore, in order to interpret such an agreement it is necessary to consider the scope of other related collective bargaining agreements, as well as the practice, usage and custom pertaining to all such agreements. Of course, as with any contract interpretation, we begin by looking at the language of the agreement for any clear manifestation of the parties’ intent. The intended meaning of even the most explicit language can, of course, only be understood in light of the context which gave rise to its inclusion.

Id. at 62 (citations, alteration, and internal quotation marks omitted).

Applying this framework, we find no reversible error in the district court’s decision that, because the agreements were ambiguous, a jury should decide whether the parties intended to create vested, lifetime medical benefits. The various agreements are susceptible to competing interpretations as to whether benefits vested. In fact, in the agreement implemented in connection with the closing of the Waynes-ville plant, the union and employees made one exception to their waiver of claims against the company:

The only exception to this provision shall be the company’s failure to honor ... any applicable benefit plan that continues past the contract termination. ... [N]othing in this agreement is intended to waive, modify or limit any retiree’s right to a pension or medical insurance, nor is it intended to waive, modify or limit such rights for any employee who is eligible to retire pursuant to the terms of the amended agreement.

J.A. 984 (No. 04-2109) (emphasis added). This exception strongly suggests that the parties contemplated continuing medical benefits.

Defendants’ reliance on Gable v. Sweetheart Cup Co., 35 F.3d 851 (4th Cir.1994), is misplaced. Gable involved a claim arising only under ERISA for benefits the employer unilaterally provided to its employees, where we explained that an employer’s waiver of “its statutory right to modify or terminate benefits ... by voluntarily undertaking an obligation to provide vested, unalterable benefits” should be “clear and express.” Id. at 855 (internal quotation marks, alteration, and citations omitted). Gable does not apply, because the district court entered the Subclass A Injunction based on a breach of the LMRA, not ERISA, and Defendants offered the benefits in the context of collectively bargained agreements, not as a “vo-luntarfy] undertaking.” Id.

Having determined that the issue was properly sent to the jury and having considered the evidence in the record, we conclude that there is sufficient evidence to support the jury’s decision that the parties intended to create vested, lifetime benefits.

II.

The second injunction relates to a subclass of plaintiffs known as Subclass B, generally consisting of employees who retired under a 1995 agreement (the “Subclass B Injunction”). The jury found that *251

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178 F. App'x 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trull-v-dayco-products-llc-ca4-2006.