Spence v. Maryland Cas. Co.
| Decision Date | 26 August 1992 |
| Docket Number | No. 89-CV-158S.,89-CV-158S. |
| Citation | 803 F. Supp. 649 |
| Parties | Erwin J. SPENCE, Jr., Plaintiff, v. MARYLAND CASUALTY COMPANY, American General Corporation, Thomas K. Fitzsimmons and William B. Loden, Defendants. |
| Court | U.S. District Court — Western District of New York |
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Christopher A. Spence, Buffalo, N.Y., for plaintiff.
Thomas S. Gill, Saperston & Day P.C., Buffalo, N.Y., for defendants.
Plaintiff Erwin J. Spence, Jr. ("plaintiff"), moves for partial summary judgment and for an order striking defendants' respective Answers for abuse of discovery. Defendants cross-move for summary judgment against all of plaintiff's causes of action. The parties' respective summary judgment motions are brought pursuant to Fed.R.Civ.P. 56. Plaintiff's motion to strike defendants' Answers is brought pursuant to Fed.R.Civ.P. 37(b)(2)(C).
Within the context of these summary judgment motions, defendants move for sanctions against plaintiff, pursuant to Fed.R.Civ.P. 11, for withholding evidence of a factual nature. Defendants also move to strike several paragraphs of various affidavits plaintiff has submitted in opposition to defendants' motion for summary judgment, as not being based on the personal knowledge of the affiant, in contravention of Fed.R.Civ.P. 56(e).
Plaintiff has filed a six-count Amended Complaint, asserting causes of action for intentional tort, wrongful discharge, violation of the Age Discrimination in Employment Act ("ADEA"), and violation of the New York State Human Rights Law. Plaintiff also requests punitive damages for defendants' alleged intentional tort, and double damages for defendants' alleged willful violation of the ADEA. This case was originally assigned to Judge Curtin after its filing on February 2, 1989. It was transferred to this Court by Order dated October 12, 1990.
This Court has jurisdiction based upon diversity of citizenship under 28 U.S.C. § 1332 and the federal claim raised pursuant to the Age Discrimination in Employment Act, 29 U.S.C. § 623(a). New York law controls with respect to the issues outside the coverage of the ADEA.
This lawsuit arises out of plaintiff's condition of total disability, allegedly resulting from defendants' pattern of intimidation and harassment which resulted in plaintiff's removal from his employment on instructions from his physician.
From 1977 through November 30, 1988, plaintiff was branch manager of Maryland Casualty Company's ("Maryland Casualty") Buffalo, New York office. In his Amended Complaint, plaintiff alleges that from April 1987 through November 1988, defendant Thomas K. Fitzsimmons ("Fitzsimmons") and defendant William B. Loden ("Loden"), while in their respective management positions as officers and employees of Maryland Casualty, and as plaintiff's direct supervisors, engaged in a systematic course of conduct toward plaintiff that was threatening, intimidating and harassing, and not directed at improving his job performance. Further, with plaintiff's age as their primary motivation, plaintiff contends that defendants' conduct toward him was intentionally calculated to cause him to leave his employment prematurely and involuntarily, through either his resignation or early retirement.
Plaintiff also alleges that since defendants' conduct was intentional and resulted in his total disability, that it constituted a wrongful discharge for which he is entitled to punitive damages. Plaintiff also contends that since defendants' conduct was willfully and unlawfully motivated by his age, in violation of 29 U.S.C. § 623(a)(1), that he is entitled to double damages under the ADEA. On his six causes of action, plaintiff seeks total damages of $6,000,000.00.
Plaintiff has moved for partial summary judgment seeking to collect past and future long-term disability benefits allegedly due him under a Long Term Disability Plan provided to salaried employees of Maryland Casualty on May 25, 1989, by American General Group Insurance Company.1 Plaintiff alleges that under the May 25, 1989 plan, he is entitled to continued receipt of total disability benefits from May 29, 1989, the date from which Maryland Casualty originally approved his disability benefits, through his sixty-fifth birthday on July 27, 1993.
In opposition to plaintiff's motion for partial summary judgment, defendants contend that the Long Term Disability Plan that plaintiff is covered under, is not the May 25, 1989 Plan, but is the Plan that was provided to salaried employees of Maryland Casualty in August of 1987. Defendants assert that under the 1987 Plan, long-term disability benefits cease when a covered employee voluntarily elects to receive retirement benefits. Defendants further contend that since plaintiff voluntarily retired on May 9, 1989 when he requested that he begin receiving pension benefits, that he is subsequently ineligible for long-term disability benefits.
Defendants also assert that plaintiff is not entitled to summary judgment on the issue of long-term disability benefits, since plaintiff has failed to properly plead a cause of action under the Employee Retirement Income Support Act, 29 U.S.C. § 1001, et seq., or in the alternative for breach of an insurance contract. Defendants further assert that none of the named defendants are parties from whom damages regarding insurance benefits may properly be collected. Finally, defendants seek sanctions against plaintiff and his attorneys for failing to offer evidence to the Court which defendants allege demonstrates a factual issue concerning the disability policies in question.
In reply, plaintiff reasserts that his retirement from Maryland Casualty was not voluntary, but was coerced by defendants. Plaintiff further contends that the terms of the two Long Term Disability policies are not in conflict, since they both provide for his continued receipt of long-term disability benefits even after he retired. Plaintiff argues, therefore, that he is entitled to continued receipt of benefits under whichever plan effectively covers him. Finally, plaintiff contends his Amended Complaint adequately prays for damages of disability insurance benefits, and that defendants were on adequate notice of his alleged disability through several other sources.
Defendants have moved for summary judgment seeking dismissal of plaintiff's action against them in its entirety. Defendants allege that plaintiff's claim of harassment, while an employee of Maryland, fails to state a cause of action for either intentional tort or wrongful discharge, since in New York worker's compensation is the exclusive remedy for disability caused by job-related stress. Defendants further argue that their conduct has not been sufficiently outrageous to support an action for an intentional tort, and that as an employee-at-will plaintiff does not possess a cognizable action under New York law for wrongful discharge, prima facie tort, or intentional infliction of emotional distress.
Defendants also assert that they are entitled to summary judgment on plaintiff's ADEA claims because plaintiff was neither terminated nor constructively discharged, he has failed to provide either direct or indirect evidence sufficient to allege a prima facie case of age discrimination under the ADEA, and further that since plaintiff alleges he was totally disabled, and therefore unable to work, he is ineligible for any ADEA remedy. Finally, defendants allege that total disability manifested by psychic injury is not compensable under New York law, and therefore plaintiff may not recover damages under New York's Human Rights Law.
In opposition to defendants' motion for summary judgment, plaintiff responds that due to his successful job performance, defendants' course of conduct toward him was unwarranted and was solely motivated by plaintiff's age.
Defendant American General Corporation ("American General"), also moves for summary judgment separately. American General claims that it did not interfere with the daily operations of Maryland Casualty which was solely responsible for dealing with its employees. American General argues, therefore, that it is not responsible for the actions of the management of Maryland Casualty. American General further asserts that on May 25, 1989, it sold a solvent Maryland Casualty to a purchaser who knew or should have known of plaintiff's suit prior to the purchase.
Within the context of the above summary judgment motions, defendants have moved for sanctions against plaintiff and plaintiff's counsel, pursuant to Fed. R.Civ.P. 11. Defendants allege that plaintiff purposefully withheld evidence of a factual nature, concerning the two disability Plans in question, in bringing plaintiff's motion for partial summary judgment. Plaintiff responds that defendants' counsel represented to him that he was covered under the May 25, 1989 Plan. In addition, defendants have moved to strike several paragraphs of several of the affidavits plaintiff has submitted in opposition to defendants' motion for summary judgment. Defendants contend these paragraphs are not based upon the personal knowledge of the respective affiants.
Plaintiff also moves for an order striking defendants' respective Answers to his Complaint, pursuant to Fed.R.Civ.P. 37(b)(2)(C). Plaintiff alleges that defendants have willfully failed to provide several documents, personnel files, medical records, and deposition testimony as ordered by this Court and by the Magistrate Judge. Plaintiff further alleges that he has been and will continue to be irreparably prejudiced by the absence of these materials.
Defendants respond that plaintiff's contentions have been previously and finally decided by the...
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