Wade v. Newport Group, Inc.

District Court, W.D. Tennessee·Decided September 2, 2025·No. 1:22-cv-01126·Unknown

Opinion

FOR THE WESTERN DISTRICT OF TENNESSEE EASTERN DIVISION

IN RE: AME CHURCH EMPLOYEE ) Lead Case No. RETIREMENT FUND LITIGATION, ) 1:22–md–03035–STA–jay ) ) ALL CASES

ORDER GRANTING IN PART, DENYING IN PART PLAINTIFFS’ MOTION FOR SANCTIONS (ECF No. 840)

Before the Court is Plaintiffs Pearce Ewing et al.’s Motion for Sanctions (ECF No. 840) filed June 12, 2025. Plaintiffs seek sanctions against Defendant Symetra Life Insurance (“Symetra”) for Symetra’s failure to supplement its discovery responses in a timely manner.1 The parties have fully briefed the issues, and on August 26, 2025, the Court held a hearing on the Motion. For the reasons set forth below, the Motion for Sanctions is GRANTED in part, DENIED in part. BACKGROUND I. Factual Background This multidistrict litigation concerns losses to a non-ERISA retirement plan established by the African Methodist Episcopal Church (“AMEC”) for its clergy and employees. Plaintiffs are current or retired clergy of the church and allege a number of claims under state law against the denomination, church officials, third-party service providers to the plan, and other alleged tortfeasors. The Court has set out the full procedural history of the case in its previous orders and

1 Plaintiffs filed a separate Rule 11 Motion for Sanctions (ECF No. 903) on August 11, 2025. Plaintiffs’ Rule 11 Motion largely incorporates the same arguments found in its Rule 37 Motion for Sanctions. Plaintiffs explain they filed the Rule 11 Motion after the Rule 37 Motion to comply with the Rule 11’s safe harbor provision and gave Symetra 21 days to withdraw the filing at issue. Symetra did not withdraw its papers and responded in opposition to the Rule 11 Motion on August 25, 2025. The Court reserves its ruling on the Rule 11 Motion for a later time. procedural events are most relevant. Briefly, as part of their Second Consolidated Amended Complaint–Class Action (ECF No.

493, as corrected ECF No. 494) (“the Second Amended Complaint”), Plaintiffs allege their claims “individually, derivatively on behalf of the Plan, and on behalf of the Class” of similarly situated plan participants and beneficiaries. In a previously filed motion to dismiss or stay the claims of the Second Amended Complaint (ECF No. 525), Symetra moved to dismiss the negligence and breach of fiduciary duty claims Plaintiffs alleged individually and the class action claims alleged on behalf of the plan participants, arguing that Symetra owed no direct duty of care to individual participants or beneficiaries of the plan. Symetra also filed a supplement to its motion to dismiss (ECF No. 756) and argued that AMEC’s crossclaims on behalf of the plan and Plaintiffs’ derivative claims on behalf of the plan were duplicative. Just as it had at an earlier stage of the case,2 Symetra argued Plaintiffs lacked the capacity to sue on behalf of the plan and requested that the Court

dismiss Plaintiffs’ derivative claims. The Court ruled on Symetra’s motion to dismiss in an order entered on April 14, 2025. See Order Granting in Part, Denying in Part Symetra’s Motion to Stay or Dismiss, Apr. 14, 2025 (ECF No. 785). While acknowledging the significance of the capacity issue raised by Symetra, the Court declined to reach it on the pleadings and where Symetra had argued the issue in a supplement to its motion. Instead, the Court found “that the better course is to take the issue up at summary

2 Symetra moved to dismiss Plaintiffs’ original First Amended Complaint for lack of Article III standing to sue on behalf of the plan. The Court rejected that argument and concluded that the question pertained to Plaintiffs’ capacity to sue on behalf of the Plan, an affirmative defense on which Symetra bore the burden of proof. Viewing the allegations of the First Amended Complaint in a light most favorable to Plaintiffs, the Court held that the facts alleged did not establish Symetra’s affirmative defense on the capacity issue and denied its motion to dismiss. 2 of their arguments on this point in one round of briefing.” Id. at 25. The Court therefore denied Symetra’s motion to dismiss the Second Amended Complaint’s derivative claims without

prejudice to Symetra’s right to present its arguments in a later motion for summary judgment. Symetra subsequently returned to the issue, once more in a motion to dismiss. On June 6, 2025, Symetra filed a motion to dismiss Plaintiffs’ derivative claims based on real party-in-interest and capacity requirements under Federal Rule of Civil Procedure 17 (ECF No. 829). As part of its Rule 12(b)(6) motion, Symetra included an unauthenticated exhibit titled “Certificate of Incumbency and Authority of Executive Director of the AME Church Department of Retirement Services and Trustee of the AME Church Retirement Plan” (ECF No. 829-2) (hereinafter “the Blackwell Certificate” or “the Certificate”). Symetra relied on the Certificate to support its argument that Rev. Brian K. Blackwell, the current Executive Director of the AMEC Department of Retirement Services, is the trustee of the plan. Symetra argued the trustee is the real party-in-

interest, meaning Plaintiffs lack the capacity to bring their derivative claims on behalf of the plan as long as the trustee of the plan was taking action to protect the plan’s interests. Symetra therefore moved for the dismissal of Plaintiffs’ derivative claims so that Rev. Blackwell could pursue the plan’s claims against Symetra.3 The Certificate bears the letterhead of the AMEC Department of Retirement Services and purports to contain attestations and certifications made by Bishop Marvin C. Zanders, the chairman of the AMEC Commission on Retirement Services. Bishop Zanders certified that Rev. Blackwell was elected as the Executive Director of the AMEC Department of Retirement Services on August

3 Symetra later filed a motion to appoint a trustee ad litem (ECF No. 904). The parties’ briefing on that motion is ongoing. 3 Executive Director “is a Trustee of the AME Church Retirement Plan and is therefore authorized to receive information from and provide written instructions to Symetra” concerning the Church’s

group variable annuity account with Symetra. Blackwell Certif. ¶ 2(b). Bishop Zanders added that Dr. James F. Miller, the incumbent, was no longer “a Trustee” of the plan and therefore no longer had any authority to receive information and issue directives concerning the plan. Id. ¶ 2(c). The Certificate purports to contain the digital signatures of Bishop Zanders, Rev. Blackwell, and Douglass P. Selby, Esq., General Counsel of AMEC, though only Bishop Zanders’s digital signature was subscribed to the attestations and certifications. Mr. Selby separately certified that Bishop Zanders was the Chairman of the Commission on Retirement Services and that Rev. Blackwell was the Executive Director of the Department of Retirement Services and that both men were “duly authorized to act on behalf of and bind” AMEC. Id. ¶ 4. For his part Rev.

Blackwell attested to or certified no facts. Rev. Blackwell signed the Certificate with his digital signature to provide a “specimen signature.” Id. ¶ 3. II. Plaintiffs’ Motion for Sanctions Under Rule 37 and the Court’s Inherent Authority Plaintiffs seek sanctions against Symetra because Symetra did not produce the Blackwell Certificate in the course of discovery. According to Plaintiffs, Symetra was responsible for procuring the Certificate from church officials in September 2024. Plaintiffs argue the Certificate was discoverable and responsive to discovery requests made by Plaintiffs as far back as September 2022. Symetra, though, never supplemented its discovery responses to produce the Certificate.

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Wade v. Newport Group, Inc., (W.D. Tenn. 2025).

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