Thorkelson v. EVANGELICAL LUTHERAN CHURCH IN AM.
764 F. Supp. 2d 1119
D. Minnesota2011Background
- Plaintiffs seek class status on pension participants/beneficiaries from 2000 to present in the Plan for AFP employees and retirees.
- Plan terminated in 2010 with about 500 participants, 175 retired.
- Plaintiffs allege ERISA and state-law claims including breach of fiduciary duty, breach of trust, disclosure, contract, promissory estoppel, and MCFA.
- Motions to dismiss filed by AFP and ELCA; plan argued to be a ERISA church plan vs. state-law regime.
- Court must determine whether the Plan is a 'church plan' under ERISA; if so, ERISA claims are dismissed.
- Court also addresses alter-ego theory, MCFA claim, and survival of state-law claims X, XI.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the Plan a church plan under ERISA | AFP/ELCA sponsor; plan maintained by church-associated entity. | Plan qualifies as church plan via 29 U.S.C. §1002(33)(C). | Yes; Plan is a church plan and ERISA claims dismissed. |
| Whether AFP is alter ego of ELCA for liability on Counts X–XI | ELCA closeness/control makes AFP an alter ego; liability should attach. | Insufficient facts to pierce corporate veil; no misconduct established. | Alter-ego theory pleaded with sufficient facts; Counts X and XI may proceed. |
| Whether MCFA claim against ELCA survives | Misrepresentations about pension benefits implicate MCFA benefits to participants. | MCFA does not apply to employment-benefit context; no public sale of merchandise. | MCFA claim dismissed. |
| Effect of ERISA church-plan ruling on Counts I–VI | ERISA preemption should not automatically bar state claims. | ERISA church-plan status preempts ERISA claims; state claims limited to non-ERISA context. | ERISA claims (Counts I–VI) dismissed; some state-law claims survive against ELCA. |
Key Cases Cited
- Lown v. Continental Cas. Co., 238 F.3d 543 (4th Cir.2001) (church plan under ERISA can include non-church sponsors controlled by church)
- Chronister v. Baptist Health, 442 F.3d 648 (8th Cir.2006) (controls/associations analysis for church-plan status)
- Catholic Charities of Maine v. City of Portland, 304 F. Supp. 2d 77 (D.Me.2004) (plan established/maintained by church-associated organization can be church plan)
- Goetz v. Greater Georgia Life Ins. Co., 554 F. Supp. 2d 831 (E.D.Tenn.2008) (evidence of church association supports church-plan status)