423 F. App'x 14
2d Cir.2011Background
- Guerrero, pro se, sued FJC Security Services Inc., New York City HRA, Local 32BJ, SEIU, Allied International Union, and Sentinel Health Fund under ERISA.
- District court adopted magistrate judge’s report, granting dismissal with prejudice as to AIU, Local 32BJ, and HRA.
- Guerrero claimed health insurance benefits were denied and sought relief under ERISA; other claims referenced medical services and a July 2008 doctor visit.
- District court concluded Guerrero failed to state a cognizable claim under ERISA §§ 502(a)(1)(B) and 502(a)(3) and the fair-representation claim against AIU/Local 32BJ.
- The appeal challenges the dismissals and seeks relief against all defendants, including those that did not move to dismiss.
- Second Circuit reviews de novo the Rule 12(b)(6) dismissal for plausibility, applying Twombly/Iqbal standards.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ERISA 502(a)(1)(B) claims can be brought against non-plan entities | Guerrero alleges benefits denial by plan-related entities. | Only covered plans, administrators, or trustees may be sued under 502(a)(1)(B). | Affirmed: claims against non-plan entities not cognizable under 502(a)(1)(B). |
| Whether Guerrero can state a claim under ERISA 502(a)(3) for equitable relief for breach of fiduciary duty | Guerrero seeks equitable relief for plan-related breaches. | Allegations are too vague to identify a plan, terms, or fiduciary breach; money damages are not cognizable under 502(a)(3). | Affirmed: no plausible basis for relief under 502(a)(3); claims insufficiently pled. |
| Whether the alleged duty of fair representation against AIU and Local 32BJ is cognizable | Guerrero alleges arbitrary, discriminatory, or bad-faith actions by the unions affecting benefits. | Allegations are vague or insufficient to show outside-range irrational conduct or causal link to injuries. | Affirmed: no plausible fair-representation claim; failures deemed at most negligent and not actionable. |
Key Cases Cited
- Vaughn v. Air Line Pilots Ass’n, Int’l, 604 F.3d 709 (2d Cir. 2010) (need a causal connection and non-arbitrary conduct for fair representation)
- Airline Pilots Ass’n Int’l v. O’Neill, 499 U.S. 65 (U.S. 1991) (arbitariness standard for union conduct)
- Barr v. United Parcel Serv., Inc., 868 F.2d 36 (2d Cir. 1989) (negligence by union not enough for breach of fair representation)
- Krauss v. Oxford Health Plans, Inc., 517 F.3d 614 (2d Cir. 2008) (claims for money damages not cognizable under 502(a)(3))
- Paneccasio v. Unisource Worldwide, Inc., 532 F.3d 101 (2d Cir. 2008) (4(b) plan participants, scope of 502(a)(1)(B) and plan coverage)
- Giordano v. Thomson, 564 F.3d 163 (2d Cir. 2009) (pleading standards for ERISA claims; plausible basis required)