Anthony v. Int'l Ass'n of Machinists & Aerospace Workers Dist. Lodge 1
Anthony v. Int'l Ass'n of Machinists & Aerospace Workers Dist. Lodge 1
Opinion of the Court
Plaintiff Gary Anthony brought this action against defendants District Lodge 1, a union affiliated with the International Association of Machinists and Aerospace Workers ("IAM"), and the International Association of Machinists and Aerospace Workers National Pension Fund ("IAM National Pension Fund" or the "Plan"). Compl. [Dkt. # 1]. He alleges that defendants violated the terms of the Plan and breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 ("ERISA"),
In Count I, plaintiff alleges that defendants violated the terms of the Plan by denying him eligibility as directed by the "documents and instruments governing the Plan." Compl. ¶¶ 13-16. In Count II, plaintiff alleges that defendants owed him a fiduciary duty under ERISA to "observe and follow the governing terms" of the Plan, and that they breached those duties.
District Lodge 1 has moved to dismiss both counts pursuant to Federal Rule of Civil Procedure 12(b)(6). It argues that plaintiff has failed to allege sufficient facts to establish that District Lodge 1 is a fiduciary as defined under the statute, see Def's Mot. to Dismiss & Supporting Mem. of Law [Dkt. # 11] ("Def's Mot."), and the Court agrees.
But because fiduciary status is only a required element under Count II, the Court will only grant defendant's motion to dismiss as to Count II and it will deny the motion as to Count I. Therefore, plaintiff's ERISA claim for violation of the terms of the Plan will go forward.
BACKGROUND
Defendant District Lodge 1 is a union affiliated with the International Association of Machinists and Aerospace Workers. Compl. ¶ 3. According to the complaint, plaintiff was employed as an "Organizer" by District Lodge 1 from May 2004 until January 2012, when he became a "Grand Lodge Representative," a position he continues to hold.
District Lodge 1 and the trustees of the IAM National Pension Fund executed a series of written Participation Agreements, which governed the union's participation in the Plan. Compl. ¶ 9. Plaintiff alleges that the agreements "obligated" defendants to provide coverage and make contributions for all District Lodge 1 employees, including plaintiff.
Plaintiff sought participant status under the Plan in order to gain eligibility for the payment of pension benefits, but he was unsuccessful. See Compl. ¶ 12. He exhausted "all internal Plan remedies," including the appeals process, during which the Plan's appeals committee determined that plaintiff was not eligible to participate in *95the IAM National Pension Fund.
On June 26, 2017, plaintiff filed this action, Compl., and on August 24, 2017, defendant IAM National Pension Fund filed an Answer. Answer [Dkt. # 10]. On the same day, defendant District Lodge 1 filed a motion to dismiss under Rule 12(b)(6) for failure to state a claim upon which relief may be granted. Def.'s Mot. The motion is fully briefed.
STANDARD OF REVIEW
"To survive a [ Rule 12(b)(6) ] motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal ,
A claim is facially plausible when the pleaded factual content "allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged."
When considering a motion to dismiss under Rule 12(b)(6), the Court is bound to construe a complaint liberally in the plaintiff's favor, and it should grant the plaintiff "the benefit of all inferences that can be derived from the facts alleged." Kowal v. MCI Commc'ns Corp. ,
ANALYSIS
I. Defendant's motion to dismiss Count II will be granted.
Count II alleges that District Lodge 1 is liable for plaintiff's loss of benefits because it participated in the decision determining *96that he was ineligible to participate in the Plan. Under ERISA:
[A] person is a fiduciary with respect to a plan to the extent (i) he exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets, (ii) he renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or (iii) he has any discretionary authority or discretionary responsibility in the administration of such plan.
"A fiduciary within the meaning of ERISA must be someone acting in the capacity of manager, administrator, or financial adviser to a 'plan.' " Pegram v. Herdrich ,
The complaint contains the conclusory allegation that "defendant District Lodge 1 owed a fiduciary duty to [p]lantiff" and that it breached its fiduciary duties through its "failure and refusal ... to act in accordance with the documents and instruments governing the Plan." Compl. ¶¶ 18, 20. Plaintiff also claims, (although in Count I), that "[t]he actions of [d]efendants District Lodge 1 and the IAM National Pension Fund alleged herein in denying eligibility and benefits to [p]laintiff Anthony are contrary to the documents and instruments governing the Plan, in breach of their fiduciary obligations." Id. ¶ 15. But the Court need not accept a plaintiff's legal conclusions as true when considering a motion to dismiss. Iqbal ,
In his opposition, plaintiff argues that he has "met the modest pleading requirement to allege that the involvement of Lodge 1 in the decision excluding him from participation in the Pension Fund and eligibility for benefits constitutes a breach of fiduciary duty under ERISA." Pl.'s Opp. at 3-4. But there are no allegations in the complaint describing District Lodge's involvement in plaintiff's eligibility determination. Plaintiff simply alleges that he sought participant status from the Plan, and that he "exhausted all internal Plan remedies to ... be eligible for the payments of pension benefits." Compl. ¶ 12.
In support of his opposition, plaintiff provides the Court with the denial letter he received from IAM National Pension Fund, which reveals that the Fund *97sought information from the union concerning which positions and/or job classifications are covered by the Participation Agreements. See Denial Letter ("[T]he Committee referred the matter to District Lodge 1 ... to ask the District Lodge's consideration of what positions, or job classifications, District Lodge 1 intended to contribute on behalf of as a Contributing Employer to the Fund and to ask what positions, or job classifications, were non-collectively bargained employees of District Lodge 1 at times relevant to [plaintiff's] appeal."). But these facts would not suffice to state a claim that District Lodge 1 is a fiduciary under ERISA because the "[a]pplication of rules determining eligibility" under a plan is purely ministerial and thus, not a fiduciary act. See
II. Defendant's motion to dismiss Count I will be denied.
Although defendant has moved to dismiss both counts on this basis, fiduciary status is not required to state a claim under Count I. Therefore, defendant's motion to dismiss Count I will be denied.
Plaintiff brought Count I under sections 1132(a)(1)(B) and 1132(a)(3) of ERISA. Compl. ¶ 16. Section 1132(a)(1)(B) authorizes a civil action to be brought "by a participant or beneficiary ... to recover benefits due to him under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan."
The Supreme Court has described section 1132(a) as a "comprehensive civil enforcement scheme" that is "relatively straightforward." Aetna Health Inc. v. Davila ,
*98If a participant or beneficiary believes that benefits promised to him under the terms of the plan are not provided, he can bring suit seeking provision of those benefits. A participant or beneficiary can also bring suit generically to "enforce his rights" under the plan, or to clarify any of his rights to future benefits.
Id. at 210,
Specifically addressing Section 1132(a)(3), the Supreme Court has held that this section "admits of no limit ... on the universe of possible defendants," and instead is focused "on redressing the 'act or practice which violates any provision' " of ERISA. Harris Tr. & Sav. Bank v. Salomon Smith Barney, Inc. ,
Since neither provision of the statute expressly identifies a proper defendant, the Court will not read a term into the statute that is not present. So, plaintiff's failure to allege facts to show that defendant is a fiduciary does not preclude Count I from going forward against the union at this time.
CONCLUSION
For all of these reasons, the Court will dismiss the claims in Count II against District Lodge 1, and the remainder of the case will go forward.
A separate order will issue.
Plaintiff opposed the motion on September 7, 2017, arguing that defendant violated the terms of the Plan and breached its fiduciary duties by deciding to "exclude [plaintiff] from eligibility and participation in the [P]lan." Pl.'s Opp. to Def.'s Mot. [Dkt. # 14] ("Pl.'s Opp.") at 5. On September 14, 2017, District Lodge 1 filed a reply. Def.'s Reply to Pl.'s Opp. [Dkt. # 15] ("Def.'s Reply").
The Department of Labor has identified ministerial acts that do not qualify as fiduciary activities with regard to plan administration and management, such as:
(1) Application of rules determining eligibility for participation or benefits;
(2) Calculation of services and compensation credits for benefits;
(3) Preparation of employee communications material;
(4) Maintenance of participants' service and employment records;
(5) Preparation of reports required by government agencies;
(6) Calculation of benefits;
(7) Orientation of new participants and advising participants of their rights and options under the plan;
(8) Collection of contributions and application of contributions as provided in the plan;
(9) Preparation of reports concerning participants' benefits;
(10) Processing of claims; and
(11) Making recommendations to others for decisions with respect to plan administration.
Reference
- Full Case Name
- Gary ANTHONY v. INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS DISTRICT LODGE 1
- Cited By
- 2 cases
- Status
- Published