Pickering v. USX Corp.
Pickering v. USX Corp.
Opinion of the Court
MEMORANDUM OPINION AND ORDER
On June 12, 1990, the court heard argument on a series of motions for partial summary judgment filed by defendant USX Corporation (“USX”). At that time, the court reserved ruling on the following motions: USX's Sixth Motion for Partial Summary Judgment (Counts IV and V), USX’s Eighth Motion for Partial Summary Judgment (Count IX), and USX's Ninth Motion for Partial Summary Judgment (Count VIII). Having considered carefully the memoranda and arguments of counsel, the court now issues its rulings on these motions. In making its rulings, the court incorporates in this opinion its previous description of the basic facts surrounding this controversy. See Pickering v. USX Corp., No. 87-C-838J, slip op. at 3-7 (D.Utah Apr. 24, 1990).
I.
The court considers first USX’s Sixth Motion for Partial Summary Judgment. This motion deals with plaintiffs who were working in July of 1986, near the time of the “work stoppage,” but who retired prior to December 31, 1986.
The court denies USX’s motion on Count IV, plaintiffs’ ERISA section 510 claim, because there are genuine issues of material fact that must be resolved by a factfinder.
As to Count V, plaintiffs’ ADEA claim, the material facts are not in dispute and, as a matter of law, the court grants USX’s Sixth Motion for Partial Summary Judgment as to all Count V plaintiffs, including those who retired on December 31, 1986. Section 4(a)(1) of the ADEA provides that employers shall not “discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s age.” 29 U.S.C. § 623(a)(1) (1988). As was true of plaintiffs’ claims concerning the June Agreement, the evidence pertaining to the retirement inducements does not establish a prima facie case under the ADEA. See Pickering v. USX Corp., No. 87-C-838J, slip op. at 20 (D.Utah Apr. 24, 1990). Plaintiffs have adduced no evidence to suggest that they were singled out for disparate treatment and constructive discharge because of age. As is detailed above, the evidence that exists points to discrimination, if any at all, on the basis of pension status. This court has already ruled that age and pension eligibility are distinct and separate. See id. at 20-21.
Plaintiffs’ protestations that age and pension eligibility are “inexorably linked” are belied by the actual terms of the pension plan in this case. See id. at 21 n. 20. As is true of most pensions plans, years of service — rather than age — is the primary factor in determining benefits eligibility. Absent some specific evidence of disparate treatment on the basis of age, the mere fact that older employees may have had more years of service than younger employees does not automatically convert the alleged pension benefits discrimination into age discrimination. A contrary holding would mean that virtually every discriminatory pension benefits denial in violation of ERISA section 510 would also constitute age discrimination. This court refuses to interpret the ADEA as a protection-broadening appendage to ERISA section 510. See Public Employees Retirement Sys. v. Betts, 492 U.S. 158, 109 S.Ct. 2854, 2867, 106 L.Ed.2d 134 (1989) (reasoning that the ADEA is not intended as an ERISA surrogate for protecting pension benefit rights). USX’s motion is therefore granted as to Count V.
II.
USX’s Eighth Motion for Partial Summary Judgment seeks judgment on Count IX of plaintiffs’ amended complaints. Count IX alleges that USX violated the
The court addresses only the second of USX’s arguments and, based upon it, grants USX’s motion as a matter of law. The material facts are undisputed, and plaintiffs have failed to produce evidence showing that the layoffs, failures to recall, and use of overtime and contracting out discriminate on the basis of age. As before, plaintiffs misapprehend the distinction between pension benefits status and age as a basis for alleged discrimination.
III.
The court examines finally USX’s Ninth Motion for Partial Summary Judgment. In this motion, USX seeks judgment on Count VIII of plaintiffs’ amended complaints as pled at the time of the motion.
USX denies these allegations. It argues that, due to the slumping domestic steel market, it made legitimate workforce reductions at all of its plants, that it followed the terms of a bona fide, union-negotiated seniority system, and that its use of contracting out and overtime was neither excessive nor an inefficient pretext for pension avoidance. USX also argues that plaintiffs’ section 510 claims are barred by the applicable statute of limitations— whether borrowed from federal or state law.
IV.
Based upon the foregoing analysis, the court hereby orders, adjudges, and decrees as follows:
1. USX’s Sixth Motion for Partial Summary Judgment is DENIED as to Count IV and GRANTED as to Count V;
2. USX’s Eighth Motion for Partial Summary Judgment is GRANTED; and
3.USX’s Ninth Motion for Partial Summary Judgment is DENIED.
IT IS SO ORDERED.
. At oral argument, USX conceded that the motion does not deal with plaintiffs who may have retired on December 31, 1986. USX also acknowledged that the motion applies to Counts IV and V of the Third Amended Complaint and thus does not treat any of plaintiffs' claims that are based upon USX employee Karla Holm’s alleged misstatements. Except where specifically noted, then, the court’s ruling on this motion is no broader than the motion itself as framed.
. USX raises for the first time in its reply memorandum the Tenth Circuit’s recent decision in Mitchell v. Mobil Oil Corp., 896 F.2d 463 (10th Cir. 1990). USX relies upon Mitchell for the argument that 111 plaintiffs in Count IV who
The argument may or may not have merit, but the court will not rule on it at this time. Raised for the first time in reply (presumably because Mitchell was decided after USX filed its initial memorandum in support), the argument contravenes Rule 5(e) of the local Civil Rules of Practice. Rule 5(e) provides, in part, that: “A reply memorandum must be limited to rebuttal of matters raised in the memorandum opposing the motion.” The court will thus defer ruling until it has the benefit of full briefing by the parties. The court invites the parties fully to brief the standing issue in light of the Mitchell case.
. Plaintiffs’ Memorandum in Opposition to USX’s motion manifests plaintiffs’ misunderstanding of the distinction between pension status and age as bases for discrimination. Plaintiffs argue "that [USX] targeted them for layoff because of the certainty that if they kept working, their cost to the company would increase as they grew older." Plaintiffs’ Memorandum at 2 (emphasis added). Plaintiffs attempt to equate pension benefits denial with age discrimination. It may be that plaintiffs were targeted for layoff so that USX could avoid benefits. The fallacy, however, is that pension eligibility is conditioned primarily upon the first underlined clause. That is, the "if they kept working” language pertains to years of service — the key factor in any pension benefits calculation. Obviously, the mere passing of years, without time in employment, would not result in eligibility. Age may play a part in — but simply is not tantamount to — pension eligibility. Thus, without some concrete evidence of age discrimination, even the most egregious pension avoidance scheme, where pension eligibility is based upon years of service, will not constitute age discrimination.
. Plaintiffs subsequently sought and were granted leave to file a Fourth Amended Complaint.
. ERISA does not contain a statute of limitations period for actions brought under section 510. Thus, the standard practice in such cases has been to borrow an analogous state or local statute of limitations. See Wilson v. Garcia, 471 U.S. 261, 266-67, 105 S.Ct. 1938, 1941-42, 85 L.Ed.2d 254 (1985); Held v. Manufacturers Hanover Leasing Corp., 912 F.2d 1197, 1205 (10th Cir. 1990). Occasionally, where federal law provides no statute of limitations, courts look instead to a federal statute if it "clearly provides a closer analogy than available state statutes, and
. Courts have taken varying positions on the appropriate statute of limitations applicable to section 510 actions. See, e.g., Held v. Manufacturers Hanover Leasing Corp., 912 F.2d 1197, 1205 (10th Cir. 1990) (borrowing three-year state employment discrimination statute); Clark v. Coats & Clark, Inc., 865 F.2d 1237, 1242 (11th Cir. 1989) (likening section 510 actions to contract claims and applying two-year state recovery of wages statute); Gavalik v. Continental Can Co., 812 F.2d 834, 846 (3rd Cir. 1987) (applying six-year state catch-all statute). Following these cases and the Supreme Court’s directive in Wilson v. Garcia, 471 U.S. 261, 266-67, 105 S.Ct. 1938, 1941-42, 85 L.Ed.2d 254 (1985), this court will not heed USX’s suggestion that it borrow an analogous federal statute. Instead, this court will apply an analogous Utah state statute of limitations to plaintiffs' section 510 actions.
However, without the benefit of pretrial conference and the clear explication of the nature of plaintiffs’ ERISA claims, the court declines at this time to select an appropriate Utah statute of limitations. USX suggests the two-year Utah statute applicable to actions "for the injury to the personal rights of another." Utah Code Ann. § 78-12-28(3) (1987). But it is not at all clear to this court that the "injury to personal rights” statute is more analagous to plaintiffs' claims than, for example, Utah’s catchall four-year statute (§ 78-12-25) or its six-year statute for actions on a written contract (§ 78-12-23). At this stage, selecting one of these statutes as more analogous than the others would be premature guesswork.
Reference
- Full Case Name
- Tony PICKERING v. USX CORPORATION and United States Steel and Carnegie Pension Fund, Defendants Lynn A. BARNEY v. USX CORPORATION and United States Steel and Carnegie Pension Fund
- Cited By
- 1 case
- Status
- Published