Williams v. Ascension Medical Group-Southeast Wisconsin Inc

CourtDistrict Court, E.D. Missouri
DecidedApril 17, 2024
Docket4:23-cv-01155
StatusUnknown

This text of Williams v. Ascension Medical Group-Southeast Wisconsin Inc (Williams v. Ascension Medical Group-Southeast Wisconsin Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Ascension Medical Group-Southeast Wisconsin Inc, (E.D. Mo. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

O’RELL R. WILLIAMS, ) ) Plaintiff, ) ) vs. ) No. 4:23-cv-01155-AGF ) ASCENSION MEDICAL GROUP – ) SOUTHEAST WISCONSIN, INC., ) ) Defendant. )

MEMORANDUM AND ORDER Plaintiff O’Rell R. Williams filed this contract action for employment benefits against his former employer, Defendant Ascension Medical Group - Southeast Wisconsin, Inc. (“Ascension”), in the Circuit Court of Ozaukee County, Wisconsin. Ascension removed the case to the United States District Court for the Eastern District of Wisconsin, arguing that the federal court had subject matter jurisdiction over Plaintiff’s state-law claims seeking severance benefits because those claims were completely preempted by the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 1001–1461, and therefore were subject to federal question jurisdiction under 28 U.S.C. § 1331.1 Ascension argued that the federal court could exercise supplemental

1 Ascension has never contended that the federal court could exercise diversity jurisdiction in this case; nor could Ascension have done so in light of the parties’ shared Wisconsin citizenship. See ECF No. 1-1, Compl. at ¶¶ 1-2. jurisdiction over Plaintiff’s remaining state-law claims seeking a bonus under Ascension’s “Short-Term At-Risk Compensation Plan” (“STARP”).2 ECF No. 1. Shortly after removal, Ascension filed a motion to dismiss Plaintiff’s complaint

for improper venue under Federal Rule of Civil Procedure 12(b)(3) or, in the alternative, to transfer the case to this Court under 28 USC § 1404(a), based on binding forum selection clauses in certain of the relevant benefit plans and contracts. ECF No. 6. On September 14, 2023, following a status conference,3 the Eastern District of Wisconsin summarily granted Ascension’s motion to transfer, denied the motion to dismiss, and

transferred the case to this Court. ECF Nos. 13, 14. The matter now comes before this Court on Ascension’s motion (ECF No. 20) to dismiss Plaintiff’s complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). Ascension argues that (1) to the extent that Plaintiff seeks severance benefits, each of Plaintiff’s state-law claims are preempted by ERISA, and (2) to the

extent that Plaintiff seeks a STARP bonus, Plaintiff’s claims are not preempted by ERISA but nevertheless fail to state a claim under state law. Plaintiff opposes the motion and has separately moved (ECF No. 25) for leave to amend his complaint. Ascension opposes the motion for leave to amend on the grounds that the proposed amendment is futile and has been unduly delayed.

2 Plaintiff did not separate his claims seeking severance benefits from those seeking a STARP bonus; rather each of his claims seek both severance benefits and a STARP bonus under various contractual and equitable theories of state law. ECF No. 1-1.

3 No transcript of the status conference has been made available to this Court. For the reasons set forth below, the Court will grant Ascension’s motion to dismiss in part, as it relates to Plaintiff’s state-law claims for severance benefits, and the Court will dismiss those claims as preempted by ERISA. The Court will decline to exercise

supplemental jurisdiction over the remaining portions of Plaintiff’s claims seeking bonuses under STARP, and the Court will remand those remaining claims to the Wisconsin state court from which the case was removed. Finally, the Court will deny Plaintiff’s motion for leave to amend without prejudice to Plaintiff seeking leave to amend in state court with respect any remaining claims.

BACKGROUND The following facts are taken from Plaintiff’s complaint. The Court also considers “[d]ocuments necessarily embraced by the pleadings,” meaning “documents whose contents are alleged in a complaint and whose authenticity no party questions, but which are not physically attached to the pleading.” See Ashanti v. City of Golden Valley, 666

F.3d 1148, 1151 (8th Cir. 2012) (holding that such documents may be considered on a 12(b)(6) motion); see also Podraza v. Whiting, 790 F.3d 828, 833 (8th Cir. 2015) (holding the same as to “documents incorporated into the complaint by reference”). Plaintiff began working as a physician at St. Joseph Hospital in 2008, and in 2015, following Ascension’s acquisition of the hospital, Plaintiff continued his employment

with Ascension. Plaintiff entered into an initial Employment Agreement with Ascension effective June 1, 2019 (the “Employment Agreement”), agreeing to provide services as a physician. ECF No. 1-6 at 1–17. On November 25, 2019, Plaintiff executed a Physician Leader Addendum to the Employment Agreement, pursuant to which he agreed to serve as the Vice-President of Medical Affairs (“VPMA”). Id. at 18–25. Effective June 27, 2021, Plaintiff executed a second Physician Leader Addendum to his Employment Agreement, pursuant to which he agreed to serve as a Medical Director. Id. at 27–31. In

August of 2022, Ascension eliminated Plaintiff’s position and terminated Plaintiff’s employment due to the closure of the hospital where he worked. Terms of the Applicable Employment Agreements, Plans, and Policies 1. Employment Agreement Plaintiff bases his claims for severance benefits and a STARP bonus, in part, on

his Employment Agreement. The Employment Agreement provided that, in consideration for Plaintiff’s services, Plaintiff would receive compensation in the form of an annual salary for the first two years, and then compensation in accordance with Ascension’s then-current Physician Compensation Plan. ECF No. 1-6 at § 2.2. The Agreement further contained a “Fringe Benefits” section, which provided that Plaintiff

would be “eligible to participate in such employee benefit plans and programs as described in Exhibit B; however, participation in such benefit plans, programs, or related policies is subject to the conditions and terms of such plans, programs or policies.”4 Id.

4 Exhibit B provided, in relevant part:

[Plaintiff] shall be provided with the benefits and employee expense reimbursement available to all similarly situated physician employees of [Ascension]. Nothing herein shall restrict, reduce or limit [Ascension’s] right to modify, amend or terminate such fringe benefit programs as [Ascension] may determine in its sole discretion, provided that such modification applies equally to all physicians, of the same or similar status as [Plaintiff], employed by [Ascension]. ECF No. 1-6 at Ex. B thereto. at § 2.3 (emphasis added). This section further provided that “[t]his Agreement does not modify the terms of participation contained in any employee benefit plan, program or policy of [Ascension], and such employee benefit plans, programs or policies will govern

[Plaintiff’s] benefit eligibility.” Id. at § 2.3 (emphasis added). 2. Workforce Transition Position Elimination Policy Aside from his Employment Agreement, Plaintiff bases his claims for severance benefits on Ascension’s “Workforce Transition Position Elimination Policy,” a copy of which is attached to Plaintiff’s complaint.5 ECF No. 1-2 at 39–49. The Policy stated that

it was “intended to provide general parameters for addressing workforce transitions . . . .” Id. at 47.

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Williams v. Ascension Medical Group-Southeast Wisconsin Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-ascension-medical-group-southeast-wisconsin-inc-moed-2024.