DiGeronimo Aggregates, LLC v. Michael Zemla
763 F.3d 506
6th Cir.2014Background
- Plaintiff DiGeronimo Aggregates contributed to the Teamsters Local Union No. 293 Pension Plan, a multiemployer ERISA plan.
- Trustees managed the Plan, including setting contribution rates and overseeing investments and expenses.
- In December 2009 the Plan terminated after nearly all contributing employers withdrew.
- Plaintiff was assessed $1,755,733 in withdrawal liability tied to unfunded vested benefits of the Plan.
- Plaintiff sued in May 2013 under 29 U.S.C. § 1451(a), alleging negligent plan management caused higher withdrawal liability; district court dismissed.
- Plaintiff sought to invoke federal common law to create a negligence claim, which the district court rejected.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a contributing employer has a federal common law negligence claim against plan trustees under ERISA. | DiGeronimo argues the common law recognizes a negligence claim against trustees. | Zemla et al. contend ERISA/MPPAA create no such remedy and lawmaking is inappropriate. | No; contributing employers have no federal common law negligence claim. |
Key Cases Cited
- Bay Area Laundry & Dry Cleaning Pension Trust Fund v. Ferbar Corp., 522 U.S. 192 (1997) (statutory standing limits suit to who may sue under ERISA)
- Pfeil v. State St. Bank & Trust Co., 671 F.3d 585 (6th Cir. 2012) (ERISA interpretive framework; not central to creating new common-law duties)
- Local 6-0682 Int’l Union of Paper, Allied Indus., Chem. & Energy Workers v. Nat’l Indus. Grp. Pension Plan, 342 F.3d 606 (6th Cir. 2003) (limits court-made ERISA common law to narrow circumstances)
- Milwaukee Brewery Workers’ Pension Plan v. Joseph Schlitz Brewing Co., 513 U.S. 414 (1981) (federal common law in ERISA area is reserved and limited)
- Whitworth Bros. Storage Co. v. Cent. States, Se. and Sw. Areas Pension Fund, 794 F.2d 221 (6th Cir. 1986) (recognition of restitution claims under federal common law in ERISA context)
- Carl Colteryahn Dairy Inc. v. W. Pa. Teamsters & Emp’rs Pension Fund, 847 F.2d 113 (3d Cir. 1988) (fraudulent inducement claim; distinguishable from negligence)
- Plucinski v. I.A.M. Nat’l Pension Fund, 875 F.2d 1052 (3d Cir. 1989) (further explanation distinguishing Colteryahn)