Currier v. Entergy Corp. Emp. Benefits Comm.

234 F.Supp.3d 808

Roseanne M. CURRIER

v.ENTERGY CORPORATION EMPLOYEE BENEFITS COMMITTEE, et al.

CIVIL ACTION No. 16–2793

United States District Court, E.D. Louisiana.

Signed February 14, 2017

Donald Lucas Hyatt, II, Donald L. Hyatt, II, APLC, Mandeville, LA, for Roseanne M. Currier.

Howard Shapiro, Benjamin M. Saper, Stacey C.S. Cerrone, Proskauer Rose, LLP, Renee Williams Masinter, Entergy Services, Inc., New Orleans, LA, for Entergy Corporation Employee Benefits Committee, et al.

SECTION I

ORDER AND REASONS

LANCE M. AFRICK, UNITED STATES DISTRICT JUDGE

Before the Court is a motion¹ for partial summary judgment filed by the defendants. For the following reasons, the motion is granted.

BACKGROUND

Plaintiff Roseanne Currier ("Currier") is a former corporate jet pilot for defendant Entergy Services, Inc. ("Entergy Services"). Through her employment with Entergy Services, Currier was covered by two related disability plans, the Entergy Corporation Companies' Benefits Plus Long Term Disability Plan ("Primary Plan") and the Disability Plan for Corporate Pilots of Entergy Corporation and Subsidiaries ("Pilots Plan" or "the Plan"). The Primary Plan and the Pilots Plan are linked.

A section of the Pilots Plan titled "When Do Your Disability Benefits Cease" provides that "Disability benefits under the Plan will be discontinued upon the earliest of the following dates or events: ... 5. the date your disability benefits under the Primary LTD Plan terminate or cease." R. Doc. No. 33–2, at 6. The Pilots Plan also provides that benefits cease upon "2. your failure to remain under the regular care and treatment of a qualified physician to the extent your disability is based on Total Disability or loss of medical certificate for reasons other than health or medical condition." R. Doc. No. 33–2, at 6.

In 2011, Currier was deemed unfit to fly because of cognitive defects. She thereafter began receiving disability benefits from both the Primary Plan and the Pilots Plan. In 2014, Unum—the administrator of the Primary Plan—terminated Currier's benefits. Defendant Entergy Corporation Employee Benefits Committee ("Entergy Benefits Committee")—the administrator of the Pilots Plan—also terminated Currier's benefits. The Entergy Benefits Committee terminated the benefits pursuant to the two provisions of the Pilots Plan cited above, namely that the plaintiff's coverage under the Primary Plan had ceased and that the plaintiff had failed to complete the cognitive rehabilitation program of neuropsychologist Dr. Bracy and had therefore failed to remain under the regular care and treatment of a qualified physician. Currier timely appealed the denial of benefits under each plan to the respective plan administrators and the administrative appeals were denied. She filed a second appeal of the denial of benefits under the Pilots Plan which appeal was also denied.

Currier then filed this lawsuit against Entergy Services, the Entergy Benefits Committee, and Entergy Corporation, the parent company of Entergy Services, claiming defendants violated several provisions of the Employee Retirement Income Security Act of 1974 ("ERISA") when they terminated her benefits under the Pilots Plan. The complaint alleges that defendants (1) improperly denied her claim for benefits under the Pilots Plan in violation of ERISA § 502(a)(1)(B); (2) breached their fiduciary duties in violation of ERISA § 502(a)(3); and (3) failed to timely provide ERISA plan documents upon request in violation of ERISA § 502(c).

In response to a previous motion filed by defendants, the Court dismissed the Section 502(c) claim and dismissed Entergy Corporation from the lawsuit. The Court refused to dismiss the Section 502(a)(3) claim, however, holding that under the U.S. Supreme Court's recent decision in CIGNA Corp. v. Amara , 563 U.S. 421, 131 S.Ct. 1866, 179 L.Ed.2d 843 (2011), a plaintiff may alternatively plead a Section 502(a)(1)(B) claim and a Section 502(a)(3) claim where there is a possibility that equitable relief may be necessary to make the plaintiff whole. See Currier v. Entergy Corp. Employee Benefits Comm. , No. CV 16-2793, 2016 WL 6024531, at *2 (E.D. La. Oct. 14, 2016). As it remains unclear whether such equitable relief would be necessary in this case, the Court declined to dismiss the Section 502(a)(3) claim at that time. In its previous opinion, the Court also ruled that dismissal of Entergy Services was not warranted, as the complaint sufficiently alleges that Entergy Services is one and the same as the Entergy Benefits Committee.

Entergy Services and the Entergy Benefits Committee now move for summary judgment on the plaintiff's Section 502(a)(1)(B) claim. They argue that because the decision to terminate Currier's benefits under the Pilots Plan was legally correct as a matter of law, Currier's claim to enforce the terms of the Pilots Plan must be dismissed.

STANDARD OF LAW

Summary judgment is proper when, after reviewing the pleadings, the discovery and disclosure materials on file, and any affidavits, the court determines there is no genuine dispute of material fact. See Fed. R. Civ. P. 56. "[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion and identifying those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett , 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The party seeking summary judgment need not produce evidence negating the existence of material fact, but need only point out the absence of evidence supporting the other party's case.

Id. ; Fontenot v. Upjohn Co. , 780 F.2d 1190, 1195 (5th Cir. 1986).

Once the party seeking summary judgment carries its burden pursuant to Rule 56, the nonmoving party must come forward with specific facts showing that there is a genuine dispute of material fact for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp. , 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). The showing of a genuine issue is not satisfied by creating " ‘some metaphysical doubt as to the material facts,’ by ‘conclusory allegations,’ by ‘unsubstantiated assertions,’ or by only a ‘scintilla’ of evidence." Little v. Liquid Air Corp. , 37 F.3d 1069, 1075 (5th Cir. 1994) (citations omitted). Instead, a genuine issue of material fact exists when the "evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The party responding to the motion for summary judgment may not rest upon the pleadings, but must identify specific facts that establish a genuine issue. Id. The nonmoving party's evidence, however, "is to be believed, and all justifiable inferences are to be drawn in [the nonmoving party's] favor." Id. at 255, 106 S.Ct. 2505 ; see also Hunt v. Cromartie , 526 U.S. 541, 552, 119 S.Ct. 1545, 143 L.Ed.2d 731 (1999).

ANALYSIS

Section 502(a)(1)(B) of ERISA states that a plan participant or beneficiary may bring a civil action "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." 29 U.S.C. § 1132(a)(1)(B). "Generally, in suits brought under 29 U.S.C. § 1132(a)(1)(B), district courts review the denial of a long-term disability-benefits claim de novo." Burell v. Prudential Ins. Co. of Am. , 820 F.3d 132, 137 (5th Cir. 2016). But where the benefits plan gives the plan administrator complete discretion and authority to interpret its terms, the plan administrator's decision to deny benefits is reviewed for an abuse of discretion. Id. ; see also Gomez v. Ericsson, Inc. , 828 F.3d 367, 373 (5th Cir. 2016).

The Pilots Plan provides that the Entergy Benefits Committee "has authority to make rules and regulations necessary for the administration of the Plan, to construe and interpret the Plan and to make sure that all participants are treated equitably." R. Doc. No. 33–3, at 7. It further states that "[t]he Plan Administrator through the Director, Employee Benefits shall have full power and authority to enforce, construe, interpret and administer the Plan," and that "[a]ll interpretations under the Plan and all determinations of fact made in good faith by the Plan Administrator shall be final and binding on the participants and other interested persons." R. Doc. No. 33–3, at 8. Accordingly, the Entergy Benefits Committee's decision to deny Currier benefits must be reviewed for an abuse of discretion. See Gomez , 828 F.3d at 373.²

"An abuse of discretion occurs when the plan administrator acted arbitrarily or capriciously."

Burell , 820 F.3d at 138 (quotation omitted); see also Gomez , 828 F.3d at 373. "Therefore, to survive summary judgment, [the plaintiff] must raise a genuine dispute of material fact that [the plan administrator's] denial of his long-term disability-benefits claim was arbitrary or capricious." Id.

The Fifth Circuit has outlined the two-step analysis to be followed when determining whether a plan administrator abused its discretion when construing plan terms. "The first stage of judicial review of an ERISA determination is determining whether the administrator's decision is legally correct." Gomez , 828 F.3d at 373. If it is, then the inquiry is at an end. Id. "In determining whether an ERISA determination is legally correct, [courts] consider: (1) whether the administrator has given the plan a uniform construction, (2) whether the interpretation is consistent with a fair reading of the plan, and (3) any unanticipated costs resulting from different interpretations of the plan." Id. (quotations omitted). "The most important factor to consider" is "whether the administrator's interpretation is consistent with a fair reading of the plan." Gosselink v. Am. Tel. & Tel., Inc. , 272 F.3d 722, 727 (5th Cir. 2001).

If the court finds...