Eichorn v. AT & T Corp.
Opinion of the Court
SUR PETITION FOR REHEARING
The petition for rehearing filed by appellants in the above-entitled case having been submitted to the judges who participated in the decision of this Court and to all the other available circuit judges of the circuit in regular active service, and no judge who concurred in the decision having asked for rehearing, and a majority of the circuit judges of the circuit in regular service not having voted for rehearing, the petition for rehearing by the panel and the Court en banc, is denied. Judge Ambro concurs in the decision to deny rehearing en banc and files a separate opinion attached hereto with respect to the decision to deny rehearing en banc.
Concurring Opinion
concurring in denial of the petition for rehearing en bane.
I vote to deny rehearing en banc because I believe the panel decision correctly applies Mertens v. Hewitt Assocs., 508 U.S. 248, 256, 113 S.Ct. 2063, 124 L.Ed.2d 161 (1993); Varity Corp. v. Howe, 516 U.S. 489, 515, 116 S.Ct. 1065, 134 L.Ed.2d 130 (1996); and Great-West Life & Annuity Ins. Co. v. Knudson, 534 U.S. 204, 210, 122 S.Ct. 708, 151 L.Ed.2d 635 (2002). As the panel concludes, the focus of those opinions — particularly Mertens and Great-West — is that any make-whole monetary relief that is not directly traceable to some wrongly held property is properly characterized as legal, not equitable, relief, and is thus unavailable in a 29 U.S.C. § 1132(a)(3) action. Slip. Op. at 24. Under this rubric, Eichorn’s request for an adjustment of pension records that would create a payment obligation is clearly unavailable.
Though I agree with the panel’s opinion, I write separately to urge Congress or the Supreme Court to revisit what Judge Becker called “an unjust and increasingly tangled ERISA regime.” DiFelice v. Aetna U.S. Healthcare, 346 F.3d 442, 453 (3d Cir. 2003) (Becker, J., concurring). As Justice Ginsburg noted a few years ago,
[bjecause the Court has coupled an encompassing interpretation of ERISA’s preemptive force with a cramped construction of the “equitable relief’ allowable under § 502(a)(3), a “regulatory vacuum” exists: “[V]irtually all state law remedies are preempted but very few federal substitutes are provided.”
Aetna Health Inc. v. Davila, 542 U.S. 200, 222, 124 S.Ct. 2488, 159 L.Ed.2d 312 (quoting DiFelice, 346 F.3d at 456-57) (Ginsburg, J., concurring).
Nowhere is that more apparent than this case. We held in Eichom I that the plaintiffs here have produced sufficient evidence that AT & T and Lucent intentionally interfered with their ERISA benefits to
This case demonstrates that the Mer-tens/Great-West definition of “equitable relief’ functionally prohibits many legitimate plaintiffs from seeking an ERISA remedy. As the panel opinion notes, it does not cut off all relief. Slip Op. at 31. Here, for example, the District Court could have enjoined AT & T and Lucent from enforcing the anti-“bridging” agreement. But by the time the case was ready for trial, the six-month window for rehiring AT & T/Lucent employees had long passed, rendering such an injunction worthless.
This result is not uncommon. Because of the complexity of much ERISA litigation (not to mention the shortage of federal judges), it tends to move slowly. The very predicate of an interference claim is that the defendant is keeping the plaintiff from benefits to which he would otherwise be
Judicial
. The panel also notes that in theory they could seek a constructive trust or equitable lien over identifiable wrongly held property, though it is most doubtful that those remedies would be appropriate in an interference claim. See Slip Op. at 24 n. 6.
. I fear that our Court has had its fill of those after the Grier case. See United States v. Grier, 475 F.3d 556, 568 n.8. (3d Cir. 2007) (en banc); id. at 579-87 (Ambro, J., concurring in judgment); id. at 598 (Sloviter, J., dissenting); id. at 616 (McKee, J., dissenting).
. [Gregory:] "Is there any point to which you would wish to draw my attention?"
[Sherlock Holmes:] "To the curious incident of the dog in the night-time.” "The dog did nothing in the night-time.”
"That was the curious incident,” remarked Sherlock Holmes.
[Sherlock Holmes:] “Before deciding that question I had grasped the significance of the silence of the dog, for one true inference invariably suggests others. The Simpson incident had shown me that a dog was kept in the stables, and yet, though someone had been in and had fetched out a horse, he had not barked enough to arouse the two lads in the loft. Obviously the midnight visitor was someone whom the dog knew well.”
Arthur Conan Doyle, Silver Blaze, in The Complete Sherlock Holmes 383, 400 (1938); see also Chisom v. Roemer, 501 U.S. 380, 396 n. 23, 111 S.Ct. 2354, 115 L.Ed.2d 348 (1991).
. See, e.g., Lind v. Aetna Health, Inc., 466 F.3d 1195, 1200 (10th Cir. 2006) (McConnell, J.) (noting that Mertens and Great-West produce “lopsided results”); Pereira v. Farace, 413 F.3d 330, 345-46 (2d Cir. 2005) (Newman, J., concurring) (questioning the Great-West definition of equity); Millsap v. McDonnell Douglas Corp., 368 F.3d 1246, 1266 (10th Cir. 2004) (Lucedo, J., dissenting) ("Here, reinstatement would have been an appropriate equitable remedy had McDonnell Douglas not so delayed proceedings as to make reinstatement impossible. Thus, through no fault of their own, the class plaintiffs find themselves devoid of the undeniably appropriate equitable remedy of reinstatement.”); DiFelice v. Aetna U.S. Healthcare, 346 F.3d at 453 (Becker, J., concurring); id. at 468 (Ambro, J., concurring); Cicio v. Does, 321 F.3d 83, 107 (2d Cir. 2003) (Calabresi, J., dissenting); Van Natta v. Sara Lee Corp., 439 F.Supp.2d 911, 941 (N.D.Iowa 2006) (Bennett, C.J.); Andrews-Clarke v. Travelers Ins. Co., 984 F.Supp. 49, 55-56 (D.Mass. 1997) (Young, J.).
. See, e.g., Colleen E. Medill, Resolving the Judicial Paradox of "Equitable Relief’ under ERISA Section 502(a)(3), 39 J. Marshall L.Rev. 827 (2006); Maria O’Brien Hylton, Insecure Retirement Income, Wrongful Plan Administration, and Other Employee Benefit Woes — Evaluating ERISA at Age Thirty, 53 Buff. L.Rev. 1193 (2005) (reviewing James A Wooten, The Employee Retirement Income Security Act of 1974 — A Political History (2004)); Lorraine Schmall & Nathan Ihnes, Failure of Equity: Discriminatory Plan Closing as an Irreemediable Injury under ERISA, 55 Cath. U.L.Rev. 81 (2005); Sarah Beth Spisich, The Aftermath of Davila; Are Healthcare Enrolees Now a Sinking Ship Without a Paddle?, Health Law. 22 (Aug. 2005); James J. Budney & Corey Ditslear, Canons of Construction and the Elusive Quest for Neutral Reasoning, 58 Vand. L.Rev. 1, 79-81 (2005); Robert F. Rich, et al., Judicial Interpretation of Managed Care Policy, 13 Elder L.J. 85 (2005); Scott M. Aronson, ERISA’s Equitable Illusion: The Unjust Justice of Section 502(a)(3), 9 Employee Rts. & Empl. Pol'Y J. 247 (2005); Langbein, supra; Judith Resnik, Constricting Remedies: The Rehnquist Judiciary, Congress, and Federal Power, 78 Ind. L.J. 223, 256-72 (2003); John M. Teske, Note, Damage Suits Under ERISA: Why Third Parties with Discretion over Benefit Plans Must Be Held Accountable, 36 Loy. L.A. L.Rev. 1753 (2003); Colleen P. Murphy, Misclassifying Monetary Restitution, 55 Smu L.Rev. 1577 (2002); Daniel J.Meltzer, The Supreme Court's Judicial Passivity, 2002 Sup.Ct. Rev. 343, 383-84 & n. 164; Lisa N. Bleed, Note, Enforcing Subrogation Provisions as "Appropriate Equitable Relief’ Under ERISA Section 502(a)(3), 35 U.S.F. L.Rev. 727 (2001); Dana M. Muir, Fiduciary Status as an Employer’s Shield: The Perversity of ERISA Fiduciary Law, 2 U. Pa. J. Lab. & Emp. L. 391 (2000); Randall J. Gingiss, The ERISA Fox
Reference
- Full Case Name
- Kurt H. EICHORN William J. Huckins T. Roger Kiang Edward W. Landis Orlando Napolitano, Individually and on Behalf of all Others Similarly Situated Gilbert G. Daley Susan H. Dibona Beth King Michael S. Oratowski Thomas L. Salisbury Lawrence Walsh, Individually and on behalf of all others similarly situated William Lawless Russell Leppala Gabe P. Torok Judith B. Brugner Kate Harris Carole T. Johnson Charles O. Laughlin, II Michael A. McFarland Barbara Oliver Gary Patterson Robert Prouix William J. Schrott Robert Michael Shepherd Ronalds A. Sokol Joseph T. Szlasa Diane F. Taylor Lorraine J. Welch Marie Zeits v. AT & T CORP. Lucent Technologies Inc. Texas Pacific Group NCR Corporation The CIT Group, Inc. John Doe Corporations 1-10
- Cited By
- 12 cases
- Status
- Published