DeLapaz v. Magnifique Parfumes and Cosmetics Inc
4:09-cv-00026
N.D. Ind.Sep 26, 2012Background
- Plaintiffs sue Magnifique Parfumes and Cosmetics, Inc. (d/b/a Perfumania) and Victoria Burton in a three-count complaint.
- Count 1 alleges unlawful termination under ERISA § 1140 to prevent ERISA benefits; Count 2 alleges defamation per se against Burton; Count 3 asserts a derivative loss-of-consortium claim.
- DeLapaz was hired in Aug 2008 as Lafayette store manager and reported to Burton.
- Events around Dec 24–31, 2008 involved DeLapaz taking an unapproved break, claiming a foot injury, and disputes over sick leave; he did not inform Magnifique of a planned leave, nor did he request medical leave.
- Magnifique treated the termination as a resignation based on DeLapaz’s actions and communications; DeLapaz later claimed he never intended to resign and sued in March 2009.
- The court granted summary judgment on Count 1 (ERISA) and declined supplemental jurisdiction over Counts 2–3, dismissing them without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| ERISA claim maintainable for equitable relief only | DeLapaz seeks equitable relief under §1132(a)(3) including back pay and lost benefits. | Remedies sought are legal damages not recoverable under §1132(a)(3). | Court held relief sought was partly non-recoverable but permitted possible equitable relief; thus not dismissing Count 1 on justiciability. |
| Whether Magnifique’s stated reason (quit) was pretext for unlawful termination | Evidence shows pretext via suspicious timing and internal communications. | Reason—believing DeLapaz quit—was honestly held; no pretext shown. | Plaintiff failed to show pretext by a preponderance of the evidence; summary judgment for Magnifique on Count 1 stands. |
| Whether to exercise supplemental jurisdiction over state-law Counts 2–3 | State-law claims remain related and should proceed in federal court. | With federal claim resolved, discretionary withdrawal is appropriate to avoid federal engagement of state-law issues. | Court declined supplemental jurisdiction; Counts 2–3 dismissed without prejudice for state-law resolution in state court. |
Key Cases Cited
- Sereboff v. Mid. Atl. Med. Servs., 547 U.S. 356 (U.S. 2006) (limits on types of relief under ERISA §1132(a)(3))
- Great-West Life & Annuity Ins. Co. v. Knudson, 534 U.S. 204 (U.S. 2002) (equitable vs. legal relief under ERISA)
- Mertens v. Hewitt Assocs., 508 U.S. 248 (U.S. 1993) (damages vs. equitable relief distinction)
- Doe v. Oberweis Dairy, 456 F.3d 704 (7th Cir. 2006) (back pay generally not recoverable under §1132(a)(3))
- Pollard v. E.I. du Pont de Nemours & Co., 532 U.S. 843 (U.S. 2001) (front pay as equitable relief; reinstatement issues)
- Lorillard v. Pons, 434 U.S. 575 (U.S. 1978) (equitable relief characterization for reinstatement)
- Newpage Wisconsin System, Inc. v. United Steel, 651 F.3d 775 (7th Cir. 2011) (post-Newpage approach to §1132(a)(3) remedies)
- Harper v. C.R. England, Inc., 687 F.3d 297 (7th Cir. 2012) (pretext standard in Title VII/ERISA contexts)
- Franzen v. Ellis Corp., 543 F.3d 420 (7th Cir. 2008) (pretext evidence standards)
- Smith v. Med. Benefit Adm’rs Grp., Inc., 639 F.3d 277 (7th Cir. 2011) (plaintiff cannot be monetarily compensated under §1132(a)(3))
- Gates v. Caterpillar, Inc., 513 F.3d 680 (7th Cir. 2008) (burden-shifting framework for pretext)
