Barish v. UMWA Health & Retirement Fund

• Decision Date: 20 December 1990
• Docket Number: Civ. A. No. 90-160.
• Citation: 753 F. Supp. 165
• Parties: Andrew BARISH, Sr., Plaintiff, v. The UNITED MINE WORKERS OF AMERICA HEALTH AND RETIREMENT FUND, Defendant.
• Court: U.S. District Court — Eastern District of Pennsylvania

753 F. Supp. 165

Andrew BARISH, Sr., Plaintiff, v. The UNITED MINE WORKERS OF AMERICA HEALTH AND RETIREMENT FUND, Defendant.

Civ. A. No. 90-160.

United States District Court, W.D. Pennsylvania.

December 20, 1990.

Ronald J. Zera, Pittsburgh, Pa., for plaintiff.

Marshall J. Conn, Pittsburgh, Pa., for defendant.

MEMORANDUM OPINION

MENCER, District Judge.

Currently before the court is a claim for disability pension benefits under a plan governed by the Employee Retirement Income Security Act, 29 U.S.C. §§ 1001, et seq. (ERISA). Both parties have moved for summary judgment.

On March 23, 1984, plaintiff Andrew Barish suffered a heart attack while employed as a bulldozer operator at the Bolgna Coal Company. As a member of the United Mine Workers of America (UMWA), he sought benefits from the UMWA 1974 Pension Trust under the eligibility requirements set forth in the 1974 Pension Plan (the Plan).¹ The Plan provides that a "participant who ... becomes totally disabled as the result of a mine accident ... shall ... be eligible for a disability pension while so disabled." (Defendant's Exhibit B at 5). Mr. Barish's claim was denied, however, on the grounds that his disability is not the "result of a mine accident."² After an internal review process, plaintiff filed this action seeking to recover the benefits in question. 29 U.S.C. § 1132(a)(1)(B).

The instant dispute is a factual dispute. Plaintiff contends that he was removing a heavy branch from the hydraulic system in his bulldozer when he suffered the heart attack. Defendant argues that Barish was merely operating the bulldozer. Apparently this is significant because if the heart attack resulted from the strenuous activity of removing the branch, Mr. Barish might qualify as having been injured as a result of a "mine accident." To so qualify, his injury must have been "unexpected," "definite," and the result of "force or impact." (Defendant's Memorandum at 5, and Exhibit C). All agree that plaintiff's injury met the first two tests, defendant argues that because Mr. Barish was merely operating the bulldozer, it fails to meet the third.

There is absolutely no disagreement about the interpretation of the relevant provision; the Fund does not argue that even if plaintiff suffered the heart attack as a result of removing the branch he still lacks the requisite "force or impact" element in his claim. In fact, an example promulgated by the trustees to aid in the plan's construction explicitly shows that the plan covers "a miner who suffers a heart attack while pushing a heavy object in the normal course of his job." (Plaintiff's Brief in Support of Summary Judgment Exhibit 8). Neither does the plaintiff argue that merely operating a bulldozer is sufficient to qualify as a mine accident. Instead, each party makes a purely fact-based argument.

Defendant argues that the evidence establishes that plaintiff did not remove any branches or engage in any strenuous work. Moreover, the Fund continues, the evidence proves conclusively that Barish was merely operating a bulldozer when he was stricken. Defendant points out that when plaintiff sought medical treatment in 1984 he made no mention of removing the branch — he stated only that he operated the bulldozer. In fact, according to the defendant, the only evidence of strenuous activity is plaintiff's own 1986 testimony which is contradictory to the 1984 statements he made in the course of medical treatment. Naturally, plaintiff counters that the 1986 statements are correct and were given the first time they were requested.

Applicability of Firestone to Factual Determinations

Firestone Tire & Rubber, Co. v. Bruch, 489 U.S. 101, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989), marked the inception of the now well-established rule that "a denial of benefits challenged under § 1132(a)(1)(B) is to be reviewed under a de novo standard unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan." Id., 109 S.Ct. at 956. Firestone dealt with plan administrators' interpretive determinations, and it generally comes up in that context. Factual determinations, however, have historically been given greater weight than interpretive ones. The question for this court is whether the factual determinations of ERISA plan administrators warrant deference similar to that accorded factual findings in other contexts. The Third Circuit opinion in Firestone specifically left that question open. Bruch v. Firestone, 828 F.2d 134, 144 n. 9 (3d Cir.1987), aff'd, 489 U.S. 101, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989); Teeter v. Supplemental Pension Plan of Consol. Rail Corp., 705 F.Supp. 1089, 1094 n. 1 (ED Pa 1989). Now, however, we must determine whether the Firestone rule mandating de novo review in the absence of an express contrary provision applies to factual determinations as well as interpretive ones.

Few courts have confronted the issue and those that have are not in agreement. Compare Petrilli v. Drechsel, 910 F.2d 1441, 1446 (7th Cir.1990) (dictum), Giusti v. General Electric Company, 733 F.Supp. 141, 146-48 (NDNY 1990), and Buchholz v. General Electric Employee Benefit Plan, 720 F.Supp. 102, 103 n. 1 (ND Ill 1989), Newell v. Prudential Insurance Co. of America, 725 F.Supp. 1233 (ND Ga 1989), all of the view that Firestone applies to both factual and interpretive determinations, with Questech Inc. v. Hartford Accident & Indemnity Co., 713 F.Supp. 956, 963 (ED Va 1989), Petrilli v. Drechsel, 1989 WL 106639 (Sept. 12, 1989 ND Ill), rev'd on other grounds, Petrilli v. Drechsel, 910 F.2d 1441, 1446 (7th Cir.1990), and Moshin v. John Hancock Mutual Life Ins. Co., No. 88-60415 (ED Mich. Nov. 27, 1989) going the other way.

The courts finding that Firestone applies to both types of decisions rely on the language of the Supreme Court's holding which, they explain, specifically recognizes and addresses the two discrete types of determinations: questions of fact are those where the administrator "determines eligibility" under pre-determined standards, while questions of interpretation are those where the administrator would "construe the terms" of a plan. Petrilli, 910 F.2d at 1446-47 (crediting the argument but not deciding the issue); Buchholz, 720 F.Supp. at 103 n. 1. Additionally, they find that the two main facets of Firestone's reasoning apply with equal force to both types of decisions: analogy to trust law supports no distinction, Petrilli, 910 F.2d at 1446-47, and ERISA's special solicitude for the rights of employees weighs in favor of allowing them to subject factual determinations to de novo review. Giusti, 733 F.Supp. at 147-48. Separating factual and interpretive questions has also been seen as "unnecessarily formalistic." Newell, 725 F.Supp. at 1241.

These cases are unpersuasive. We find that Firestone does not apply to issues of fact and that absent any conflict of interest, bad faith or similar concerns, plan administrators' resolutions of factual disputes are to be reviewed only to insure that they are supported by substantial evidence.³

The special treatment accorded original factual determinations dates from the Constitution, U.S. Const. Am. VII, and is found throughout our legal system, especially in the areas of appellate review, see Fed.R. Civ.P. 52, and administrative law, see K. Davis, Administrative Law Treatise 1982 Supp. at 518-30; see, e.g., Marsh v. Oregon Natural Resources Council, 490 U.S. 360, 109 S.Ct. 1851, 1860-61, 104 L.Ed.2d 377 (1989); D. Harris Masonry Contracting, Inc. v. Dole, 876 F.2d 343 (3d Cir. 1989). See generally Aldisert, The Judicial Process, 689-730 (1976); K. Davis, Administrative Law Treatise 119-27 (1st Ed.1958). Even in trust and pension law, factual and interpretive decisions are often analyzed separately.⁴

The reasons for the disparate treatment vary with the context, but the common and most glaring reason is the exorbitant cost to the government and all parties of repetitive trials on factual matters. The argument that allowing de novo review is in the employees' interest, therefore, is far from self-evident; extra litigation costs will ultimately be borne by the employees themselves. It is true that the Supreme Court rejected a similar argument in Firestone regarding the costs of litigating interpretive questions de novo, Firestone, 109 S.Ct. at 956, but that only underscores the conclusion that Firestone should not apply to factual determinations. The costs of litigating factual disputes are likely to be far greater than the analogous costs in interpretive disputes while the reasons for the expense are far less compelling. Perhaps, by all its accoutrements, a federal court is in the better position to decipher the meaning of an obscure phrase in a benefit plan; there is no cause, however, to put greater faith in a federal court's choice to believe, for instance, one set of witnesses over another. If there is no conflict of interest, bad faith or the like, a federal court's thorough probing of the factual record to be certain that the requisite quantum of evidence is found there, suffices to protect the parties against error. See Questech, 713 F.Supp. at 963. Thus, neither ERISA's analogue in trust law, nor ERISA's solicitude for employees mandates that federal district courts be available to retry every factual determination of plan administrators.

Neither does the language of the Supreme Court's opinion suggest the same treatment for these different types of determinations. As noted earlier, courts emphasize the dichotomy in the holding itself: "a denial of benefits challenged under § 1132(a)(1)(B) is to be reviewed under a de novo standard unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan." Firestone, 109 S.Ct. at 956 (emphasis added). However, introductory language sets the direction in...