Villers v. BD. OF TRUSTEES, SHEET METAL WORKERS'

901 F. Supp. 1111, 1995 U.S. Dist. LEXIS 14556, 1995 WL 584080
CourtDistrict Court, S.D. West Virginia
DecidedSeptember 20, 1995
DocketCiv. A. 6:94-0778
StatusPublished
Cited by3 cases

This text of 901 F. Supp. 1111 (Villers v. BD. OF TRUSTEES, SHEET METAL WORKERS') is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Villers v. BD. OF TRUSTEES, SHEET METAL WORKERS', 901 F. Supp. 1111, 1995 U.S. Dist. LEXIS 14556, 1995 WL 584080 (S.D.W. Va. 1995).

Opinion

MEMORANDUM OPINION AND ORDER

HADEN, Chief Judge.

Pending is Defendants’ motion for summary judgment and Plaintiffs’ motion for partial summary judgment. 1 Plaintiffs have not responded to Defendants’ motion; Defendants have responded to Plaintiffs’ motion and Plaintiffs have replied. The time for further filings has lapsed and this matter is ripe for adjudication. 2

Plaintiffs filed their complaint September 8,1994, alleging Defendants violated the Employee Retirement Income Security Act of 1974 (“ERISA”), Title 29 U.S.C. §§ 1132 and 1141, when the Appeals Committee of Defendant Board of Trustees of the Sheet Metal Workers National Pension Fund (“the Plan”) denied Plaintiff Orvin Villers (“Villers”) dis *1114 ability benefits. Plaintiffs contend the Plan’s decision to deny Villers’ claim for disability benefits was arbitrary and capricious. They also contend the Plan and Defendant Sheet Metal Workers International Association, Local Union 33 (“the Local”) violated ERISA and federal common law by, among other things, misrepresenting Villers’ eligibility for disability benefits in order to induce him to join the Local and participate in the Plan.

Villers was the sole owner and operator of a heating and air conditioning business from 1972 through 1991. In 1991 he was contacted by Earl Webb, an organizer for the Local. According to Villers, Webb and another Local official, Harry Oiler, persuaded Villers to join the Local and participate in the Plan. This persuasion included a promise to Villers that he would receive fifteen (15) years of “past service credit” for pension purposes if he divested himself of ownership in his business.

The prospect of receiving this past service credit was an important, if not critical, consideration of Villers in determining whether to sign his shop with the Local. He asserts the information he received at this early juncture concerning his entitlement to past service credit emanated solely from Webb and Oiler. Villers eventually divested himself of ownership of his business by incorporating it and installing his wife as sole owner and president of the company. He then joined the Local and began participating in the Plan in April of 1991. Contributions to the Local and the Plan were deducted from his pay. Villers, however, apparently did not seek confirmation of his entitlement to past service credit until after he transferred control of his business to his wife. This “confirmation” was in the form of an April 11, 1991, letter from a Plan official. 3

Villers suffered a heart attack in December of 1993 and thereafter applied for a disability pension from the Plan. The Plan denied the pension, however, after concluding Villers lacked sufficient past service credit to make him eligible for benefits. As support for the denial, the Plan cited the “Plan Booklet” that outlined participants’ eligibility for benefits and rejected Villers’ contention that he should be credited with fifteen years of past service credit. The adverse decision was affirmed when Villers appealed the determination to the Plan’s Appeal Committee. Villers and his wife now seek relief against both the Plan and the Local.

Plaintiffs essentially assert the Plan (1) abused its discretion in denying Villers’ disability pension, and (2) engaged in certain statutory violations of ERISA. They also purport to assert federal common law claims of estoppel and misrepresentation against the Plan and the Local. Defendants respond the Plan’s denial of benefits was reasonable and that no substantial statutory violations occurred. Defendants also assert they cannot be held liable on Plaintiffs’ federal common law grounds.

I.

The standard used to determine whether a motion for summary judgment should be granted or denied has been stated by our Court of Appeals as follows:

A moving party is entitled to summary judgment ‘if the pleading, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact and that the moving party is entitled to judgment as a matter of law.’ Fed.R.Civ.Pro. 56(c). See Charbonnages de France v. Smith, 597 F.2d 406 (4th Cir.1979).
A genuine issue exists ‘if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.’ Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). In considering a motion for summary judgment, the court is required to view the facts and draw reasonable inferences in a light most favorable to the nonmoving party. Id. at 255, 106 S.Ct. at 2514. The plaintiff is entitled to have the credibility of all his evidence presumed. Miller v. Leathers, 913 F.2d 1085, 1087 (4th Cir.1990), cert. denied, 498 U.S. 1109, *1115 111 S.Ct. 1018, 112 L.Ed.2d 1100 (1991). The party seeking summary judgment has the initial burden to show absence of evidence to support the nonmoving party’s case. Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). The opposing party must demonstrate that a triable issue of fact exists; he may not rest upon mere allegations or denials. Anderson, 477 U.S. at 248, 106 S.Ct. at 2510. A mere scintilla of evidence supporting the ease is insufficient. Id.

Shaw v. Stroud, 13 F.3d 791, 798 (4th Cir.), cert. denied, — U.S. -, -, 115 S.Ct. 67, 68, 130 L.Ed.2d 24 (1994).

II.

Defendants first assert they are entitled to judgment as a matter of law, at least in part, because the Plan’s reasonable interpretation of its governing documents mandated the denial of Villers’ requested disability pension.

? Court addressed the standard of review for a denial of benefits by an ERISA Plan in Pritt v. United Mine Workers of America 1950 Benefit Plan and Trust, 847 F.Supp. 427 (S.D.W.Va.1994) (Haden, C.J.):

The standard of review of a decision made by Trustees of an ERISA benefit plan is ordinarily de novo. Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 115, 109 S.Ct. 948, 956, 103 L.Ed.2d 80 (1989); Richards v. United Mine Workers of America Health and Retirement Fund,

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Related

Villers v. Board of Trustees
Fourth Circuit, 1996
Sargent v. Holland
925 F. Supp. 1155 (S.D. West Virginia, 1996)

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901 F. Supp. 1111, 1995 U.S. Dist. LEXIS 14556, 1995 WL 584080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/villers-v-bd-of-trustees-sheet-metal-workers-wvsd-1995.