Marshall v. Ormet Corp.
| Citation | 228 F.Supp.2d 811 |
| Decision Date | 19 August 2002 |
| Docket Number | No. C2-02-120.,C2-02-120. |
| Parties | Michael E. MARSHALL, et al., Plaintiffs, v. ORMET CORPORATION, Defendant. |
| Court | U.S. District Court — Southern District of Ohio |
John Richard Tomlan, Tomlan Law Offices, St. Clairsville, OH, for Plaintiffs.
Brian T. Johnson, Baker & Hostetler, Columbus, OH, for Defendant.
This matter is before the Court for consideration of Defendant's Motion to Dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. (Doc. # 2). Plaintiffs assert state law claims for misrepresentation, breach of fiduciary duty, intentional infliction of emotional distress, loss of survivorship interest in retirement benefits and loss of consortium. Defendant claims, however, that although styled as claims for relief under state law, Plaintiffs' allegations amount to a claim for breach of duty by fiduciary of a plan governed by the Employee Retirement Income Security Act of 1974, as amended ("ERISA") 29 U.S.C. § 1001 et seq. Further, Defendant claims that Plaintiffs cannot maintain a claim under ERISA because their suit is untimely and it is filed against the wrong defendant.
The Court exercises jurisdiction pursuant to 28 U.S.C. § 1331. For the reasons set forth below, Defendant's Motion is provisionally DENIED.
The Complaint contains the following allegations. Plaintiff Michael Marshall was hired at Defendant Ormet Corporation on May 9, 1974. Complaint ¶ 2. On approximately July 20, 1987, Mr. Marshal was involved in an altercation at work which caused him ongoing psychiatric problems and which prevented his return to gainful employment permanently. Id. ¶ 3. Marshall drew the maximum 104 weeks of accident and sickness benefits under Defendant's benefit program. Id. ¶ 4.
Approximately 4 months before Marshall's accident and sickness benefits were to expire, Mr. Marshall consulted with Harry Moorehead, Defendant's Manager of Corporate Benefits, regarding Marshall's interest in applying for disability retirement benefits that would take effect in August of 1989. Id. ¶ 5. Moorehead informed Marshall that he could file for disability retirement benefits, but that because of his young age and insufficient years of service he would not qualify. Id. ¶ 6. Plaintiff did not file for benefits. Id. ¶ 7.
In May of 1992 Marshall applied for, and was denied, disability retirement benefits. Id. ¶ 8. Marshall was given 60 days to appeal this decision, yet did not do so. Marshall claims that Moorehead continued to advise him that he did not qualify for disability retirement benefits and that it would be futile to continue to apply. Id. ¶ 9.
In 1997, Marshall's disability retirement benefits were granted, effective March 1, 1997. Id. ¶ 10. Marshall claims that he would have received disability retirement benefits for the period between August 1, 1989 and February 28, 1997 if Moorehead had not made false representations to him about his ability to qualify for said benefits. Id. ¶¶ 11-15.
Marshall and his wife filed the Complaint on January 7, 2002 in Monroe County, Ohio. Defendant removed the case to this Court pursuant to 28 U.S.C. § 1441 and Section 502(e)(1) of ERISA, 19 U.S.C. § 1132(e)(1). Defendant now moves the Court to dismiss Plaintiffs' case for failure to state a claim upon which relief can be granted.
A motion to dismiss for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure "should not be granted unless it appears beyond a doubt that the plaintiff can prove no set of facts in support of his claim that would entitle him to relief." Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); Nishiyama v. Dickson County, 814 F.2d 277, 279 (6th Cir.1987) (en banc). In reviewing the motion, this Court must construe the complaint liberally in the nonmovant's favor and accept as true all factual allegations and permissible inferences therein. Westlake v. Lucas, 537 F.2d 857, 858 (6th Cir.1976).
A "complaint need not set down in detail all the particularities of a plaintiff's claim," Westlake, 537 F.2d at 858, the complaint must give the defendant "fair notice of what the plaintiff's claim is and the grounds upon which it rests." Conley, 355 U.S. at 47, 78 S.Ct. 99. Thus, a 12(b)(6) motion tests whether the plaintiff has stated a claim for which the law provides relief. Cheriee Gazette v. City of Pontiac, 41 F.3d 1061, 1064 (6th Cir.1994). Consequently a complaint will not be dismissed pursuant to Rule 12(b)(6) unless there is no law to support the claims made, the facts alleged are insufficient to state a claim, or there is an insurmountable bar on the face of the complaint. See generally, Rauch v. Day & Night Mfg., 576 F.2d 697, 702 (6th Cir.1978); Ott v. Midland-Ross Corp., 523 F.2d 1367, 1369 (6th Cir.1975); Brennan v. Rhodes, 423 F.2d 706 (6th Cir.1970).
Defendant moves for dismissal of this case arguing that Plaintiffs' claims are (A) preempted by ERISA; and (B) are barred by ERISA's statute of limitations and brought against the wrong party. The Court will address each of Defendant's claims seriatim.
It is the general rule that a plaintiff may elect to base his or her complaint upon state law and prevent removal to federal court under what is termed the "well-pleaded complaint rule." Caterpillar v. Williams, 482 U.S. 386, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). Under this principle, a plaintiff may elect to assert valid state claims while foregoing any possible federal claims and thereby defeat the federal question jurisdiction of the United States District Court. A well-established exception to the well-pleaded complaint rule occurs when federal law has created "complete preemption." Warner v. Ford Motor Co., 46 F.3d 531, 533-34 (6th Cir. 1995). Under Article VI of the Constitution, the Constitution and laws of the United States, and treaties are deemed to be "the supreme law of the land." U.S. CONST., art. VI, P2. "Consequently, if a plaintiff seeks to assert only a state law claim in an area in which the Federal Constitution, laws or treaties have preempted the field, the well-pleaded complaint rule must give way to the supremacy of federal law." Wheeling-Pittsburgh Steel Corp. v. Mitsui & Co., 26 F.Supp.2d 1022, 1025 (S.D.Ohio 1998) aff'd 221 F.3d 924 (6th Cir.2000). The question before the Court, therefore, is whether the Complaint raises matters within the exclusive jurisdiction of federal law or treaty.
Plaintiffs argue that their claims are not within the exclusive jurisdiction of ERISA because (1) they are not merely trying to recover benefits under a pension plan but, instead, "are seeking to redress Defendant's intentional and/or fraudulent conduct to deprive Plaintiff of benefits due under the plan and for other tortious relief," and because (2) there is no adequate remedy provided by ERISA. The Court disagrees, and for the reasons that follow find that Plaintiffs' claims are preempted by ERISA.
Defendant contends that Plaintiffs' claims are governed by Sections 409 and 532(a)(2) or (3)1 of ERISA, 29 U.S.C. § 1109 and 1132(a)(2) and (3), provide subject matter jurisdiction over claims for breach of duty by a fiduciary2 with respect to an employee benefit plan.3 Further, Section 532(e)(1) of ERISA, 29 U.S.C. § 1132(e)(2), requires that all claims for breach of fiduciary duty relating to an employee benefit plan be brought exclusively in federal district court.4
ERISA's provisions "supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan [covered by ERISA]." 29 U.S.C. § 1144(a). It is not disputed that the Plan is an employee benefit plan as defined by ERISA. "ERISA preempts state law and state law claims that "relate to" any employee benefit plan as that term is defined therein." Cromwell v. Equicor-Equitable HCA Corp., 944 F.2d 1272, 1275 (6th Cir.1991); Pilot Life Insurance Co. v. Dedeaux, 481 U.S. 41, 41, 107 S.Ct. 1549, 95 L.Ed.2d 39 (1987). "The phrase `relate to' is given broad meaning such that a state law cause of action is preempted if `it has connection with or reference to that plan.'" Cromwell, 944 F.2d at 1275-76; Metropolitan Life Ins. Co. v. Mass., 471 U.S. 724, 730, 105 S.Ct. 2380, 85 L.Ed.2d 728 (1983).
Congress' intent in enacting ERISA was to completely preempt the area of employee benefit plans and to make regulation of benefit plans solely a federal concern. See Pilot Life, 481 U.S. at 41, 107 S.Ct. 1549; Cromwell, 944 F.2d at 1276; Firestone Tire & Rubber Co. v. Neusser, 810 F.2d 550 (6th Cir.1987). The Supreme Court has consistently emphasized the expansive sweep of the preemption clause. See, e.g.'s, Pilot Life, 481 U.S. at 41, 107 S.Ct. 1549; Metropolitan Life, 471 U.S. at 730, 105 S.Ct. 2380; Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 103 S.Ct. 2890, 77 L.Ed.2d 490 (1983). "Thus, only those state laws and state law claims whose effect on employee benefit plans is merely tenuous, remote or peripheral are not preempted." Cromwell, 944 F.2d at 1276. The Sixth Circuit, too, "has repeatedly recognized that virtually all state law claims relating to an employee benefit plain are preempted by ERISA." Id.; Ruble v. UNUM Life Ins. Co., 913 F.2d 295 (6th Cir.1990); Davis v. Kentucky Finance Cos. Retirement Plan, 887 F.2d 689 (6th Cir.1989), cert. denied, 495 U.S. 905, 110 S.Ct. 1924, 109 L.Ed.2d 288 (1990); McMahan v. New England Mut. Life Ins. Co., 888 F.2d 426 (6th Cir.1989); Neusser, 810 F.2d 550. Regardless of the label that a plaintiff assigns, a state law claim is preempted if it makes reference to, or has connection with, an ERISA plan. See California Division of Labor Standards Enforcement v. Dillingham Constr., N.A., Inc., 519 U.S. 316, 325, 117 S.Ct. 832, 136 L.Ed.2d 791 (1997); Cromwell, 944 F.2d at 1276.
In the instant case, Plaintiffs assert the following...
To continue reading
Request your trial