Strang v. Ford Motor Co. General Retirement Plan, 693 F. App'x 400

Background

John Strang, a Ford retiree, was notified in April 2012 of a limited-time voluntary lump-sum buyout offered to retirees, with each retiree randomly assigned a 60–90 day Lump Sum Window Election Period.
Mr. Strang’s assigned election window was December 14, 2012–March 13, 2013. He was diagnosed with terminal cancer in late July 2012 and died November 18, 2012.
The Strangs repeatedly contacted Ford’s National Employee Service Center requesting election forms and expedited processing; Ford sent the standard election form on November 30, 2012.
Mr. Strang sent a letter on November 16, 2012 expressing a desire for the lump-sum, but the letter was equivocal and not on the required election form; Mrs. Strang’s power of attorney terminated on his death.
Ford denied the lump-sum because (1) Mr. Strang died before his assigned election period began and (2) no completed signed election form was submitted during the election period. Mrs. Strang sued under ERISA seeking benefits and also asserted a breach-of-fiduciary-duty claim.
The district court granted judgment on the administrative record for Ford and dismissed the fiduciary claim; the Sixth Circuit affirmed, applying arbitrary-and-capricious review to the administrator’s interpretation.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Ford had to provide election forms or accept an early election before the assigned window	Strang: Ford should have furnished forms or accept Mr. Strang’s early requests so his election could be effective	Ford: Plan requires submission of a completed signed election form during assigned window; no obligation to send forms earlier	Held: Plan reasonably limits effective elections to the assigned window; sending forms two weeks before window was not arbitrary or capricious
Whether Mr. Strang’s November 16 letter constituted a valid election	Strang: The letter showed intent and supplied necessary information to constitute an election	Ford: Letter was equivocal, not the required completed signed form in the plan’s format	Held: Letter was not a proper election; equivocal language and lack of required form make denial reasonable
Whether a retiree who dies before their assigned window can be treated as eligible	Strang: No reason to deny eligibility where member clearly intended lump-sum	Ford: The plan contemplates submission by the member during the window; death terminates power to elect	Held: Interpretation that death before the window defeats eligibility is rational and not arbitrary
Whether a breach-of-fiduciary-duty claim may proceed alongside a denial-of-benefits claim	Strang: Fiduciary claim should be allowed as alternative/duplicative remedy given alleged withholding of forms	Ford: Relief for the same injury is available under § 1132(a)(1)(B); fiduciary claim is duplicative	Held: Fiduciary claim dismissed because the injury and remedy are the same; Rochow/Wilkins bar duplicative § 1132(a)(3) claims

Key Cases Cited

McClain v. Eaton Corp. Disability Plan, 740 F.3d 1059 (6th Cir.) (describing arbitrary-and-capricious review as the least demanding standard)
Cozzie v. Metropolitan Life Ins., 140 F.3d 1104 (7th Cir.) (on administrator discretion and review standard)
Shelby Cty. Health Care Corp. v. Majestic Star Casino, 581 F.3d 355 (6th Cir.) (de novo review of administrative-record judgments when no discretion granted)
Marks v. Newcourt Credit Grp., Inc., 342 F.3d 444 (6th Cir.) (applying arbitrary-and-capricious review where plan grants discretion)
Miller v. Metropolitan Life Ins., 925 F.2d 979 (6th Cir.) (plan interpretations upheld if rational in light of plan provisions)
Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101 (U.S.) (standard for judicial review of ERISA benefit denials)
Borda v. Hardy, Lewis, Pollard & Page, P.C., 138 F.3d 1062 (6th Cir.) (upholding administrator decisions if rational)
Rochow v. Life Insurance Co., 780 F.3d 364 (6th Cir.) (en banc) (§ 1132(a)(3) fiduciary claims barred when injury and remedy duplicate § 1132(a)(1)(B))
Wilkins v. Baptist Healthcare System, Inc., 150 F.3d 609 (6th Cir.) (same principle barring duplicative fiduciary claims)
Hunt v. Rousmanier’s Adm’rs, 21 U.S. 174 (U.S.) (power of attorney terminates upon principal’s death)