Trull v. Dayco Products, LLC

214 F.R.D. 394, 30 Employee Benefits Cas. (BNA) 3015, 2003 U.S. Dist. LEXIS 7647, 2003 WL 21006176
CourtDistrict Court, W.D. North Carolina
DecidedMay 2, 2003
DocketCiv. No. 1:02 CV 243
StatusPublished
Cited by1 cases

This text of 214 F.R.D. 394 (Trull v. Dayco Products, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina 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, 214 F.R.D. 394, 30 Employee Benefits Cas. (BNA) 3015, 2003 U.S. Dist. LEXIS 7647, 2003 WL 21006176 (W.D.N.C. 2003).

Opinion

[395]*395 MEMORANDUM OF OPINION

THORNBURG, District Judge.

THIS MATTER is before the Court on the Plaintiffs’ motion for class certification to which the Defendants have responded. For the reasons stated herein, the motion is granted.

I. PROCEDURAL HISTORY

On December 21, 2001, the captioned Plaintiffs filed this action in the United States District Court for the Southern District of Ohio. On September 20, 2002, that Court transferred venue to this District. On October 29, 2002, the undersigned ordered the parties to advise as to the status of certain pending matters and provided a time within which the Defendants should respond [396]*396to the motion for class certification, originally filed in the District of Ohio on May 10, 2002. On November 19, 2002, the undersigned entered an Order maintaining the status quo of the action and providing the Defendants additional time within which to respond to the motion for class certification. Although no reply briefs to the Defendants’ response were allowed by that Order, the Plaintiffs’ motion for leave to file such a reply will be granted for the reasons stated therein.

II. STANDARD OF REVIEW

Federal Rule of Civil Procedure 23 sets forth a two-part test for certifying a class action. First, the Plaintiffs must show four prerequisites: “(1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims ... of the representative parties are typical of the claims ... of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.” Fed.R.Civ.P. 23(a).

[T]he final three requirements of Rule 23(a) “tend to merge,” with commonality and typicality “serving] as guideposts for determining whether ... maintenance of a class action is economical and whether the named plaintiffs claim and the class claims are so interrelated that the interests of the class members will be fairly and adequately protected in their absence.”

Broussard v. Meineke Discount Muffler Shops, Inc., 155 F.3d 331, 337 (4th Cir.1998) (quoting General Tel. Co. v. Falcon, 4,57 U.S. 147, 157 n. 13, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982)). If each of these prerequisites is met, then the putative class must show that it fits into one of three categories specified in Rule 23(b). Unless each prerequisite is met, a determination under Rule 23(b) is unnecessary. Broussard, supra, at n. 3.

in ruling on a motion for class certification, the district court must accept the allegations of the complaint as true. In re Kirschner Med. Corp. Sec. Litig., 139 F.R.D. 74, 81 (D.Md.1991). Nonetheless, the burden of establishing the right to certification remains with the proponents thereof. Stastny v. Southern Bell Tel. & Tel. Co., 628 F.2d 267 (4th Cir.1980).

The Court will first determine whether the prerequisites of Rule 23(a) have been met. If so, the provisions of Rule 23(b) will then be applied.

III. ALLEGATIONS OF THE FIRST AMENDED COMPLAINT

On June 19, 2002, Plaintiffs filed the first amended complaint in order “to enforce the terms of certain Group Benefits Agreements entered into between Dayco [Products, Inc.] and Local No. 277, United Rubber, Cork, Linoleum and Plastic Workers of America (‘Local 277’) and to enforce both Section 515 of the Employee Retirement Income Security Act of 1974, as amended (‘ERISA’), 29 U.S.C. § 1145, and Section 301 of the Labor Management Relations Act of 1947, as amended (‘LMRA’), 29 U.S.C. § 185.”1 First Amended Class Action Complaint (“Amended Complaint”), filed June 19, 2002, at 4. At issue is the provision of health insurance benefits for retired employees of Dayco who were members of Local 277 at Dayeo’s Waynesville, North Carolina, plant. That plant closed all operations in 1998. Id., at 7.

Local 277 negotiated with Dayco management for benefits to cover its members in 1968, 1971, 1974, 1977, 1980, 1990 and 1995. Id., at 8. In each of these agreements, with the exception of the 1995 agreement, Dayco agreed to provide health insurance to employees who retired from Local 277 at no cost.2 Id., at 9. “When an employee at De[397]*397fendant’s Waynesville plant retired, he was entitled to receive the benefits set forth in the Agreement in effect at the time of his retirement, for life. The benefits promised to retirees were vested and could not be reduced after the employee retired. The same benefits were also promised, for life, to the surviving spouse of each covered retiree, following the retiree’s death.” Id.

In 1992, Dayco and Local 277 entered into an addendum to the 1990 agreement pursuant to which caps3 were imposed on the amount that Dayco would be required to pay for health insurance for employees who retired after the date of the agreement. Id. Plaintiffs allege the provisions of the addendum precluded enforcement of it in the event that the Dayco plant closed. Id., at 10. Nonetheless, in 1999 and again in 2001, after the plant had closed, Defendant Mark IV4 announced that the costs of providing insurance to the retirees had exceeded the caps specified in the 1992 addendum and it began to charge monthly premiums to retirees for their insurance. Id.

The last agreement negotiated by Local 277 was in 1995. Dayco “represented” to Local 277 that the caps would increase by five percent each year as to future retirees. Id., at 11. However, Dayco began to charge retirees health insurance premiums without application of the five percent cap increase. Id.

Another issue in this dispute involves co-payments for prescription drug and other medical expenses. Prior to 2000, retirees paid a co-payment for each such expense with the insurance carrier paying the balance. Id., at 12. The co-payments made by the retirees were subject to a yearly maximum amount after which the carrier paid all such costs. Id. The co-payments were also counted toward that maximum along with the actual cost of the product. Id. After 2000, members were forced to pay more money for out-of-pocket expenses before the carrier would pay 100 percent of the expense. Id.

By virtue of these actions, Plaintiffs have alleged six claims of violations of LMRA and erisa:

IV. DISCUSSION

Plaintiffs have described the class as “[a]ll persons who retired from the Local 277 bargaining unit having met the eligibility requirements for retiree medical coverage, plus the surviving spouses of such retirees who died before the initial [cjomplaint was filed in this matter or who die while this action is pending.” Plaintiffs’ Motion for Class Certification, filed May 10, 2002, at 1.

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214 F.R.D. 394, 30 Employee Benefits Cas. (BNA) 3015, 2003 U.S. Dist. LEXIS 7647, 2003 WL 21006176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trull-v-dayco-products-llc-ncwd-2003.