White v. Hilton Hotels Retirement Plan
263 F. Supp. 3d 8
D.D.C.2017Background
- Named Plaintiffs Valerie White, Eva Juneau, and Peter Betancourt bring an ERISA putative class action challenging vesting determinations by the Hilton Hotels Retirement Plan; Defendants moved to dismiss under Rules 12(b)(1) and 12(b)(6).
- The complaint overlaps in subject matter with earlier long-running litigation, Kifafi v. Hilton Hotels Retirement Plan, but Plaintiffs allege claims outside the narrow classes certified there.
- White alleges improper use of the "elapsed time" method for pre-1976 service and that fractional years were not converted to hours when the Plan later shifted to an hourly method.
- Juneau alleges Defendants failed to credit service at a Reno Hilton property because it was labeled a "non-participating" property, though Plaintiffs allege no record supports that the property was not a Related Company and allege inconsistent treatment.
- Betancourt seeks benefits as a non-spouse beneficiary of his deceased father; Defendants say the Plan pays only surviving spouses unless a participant elected a particular annuity option, and also raised timeliness.
- The court applied deferential (abuse-of-discretion/reasonableness) review of plan decisions, denied dismissal as to White and Juneau, and dismissed Betancourt's claim without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Use of elapsed-time method for pre-1976 service (White) | White: Plan should have converted fractional elapsed-time years to hours when Plan moved to hourly method, so she meets vesting | Defs: Elapsed-time method is valid; Plan reasonably declined to convert fractional years; statute-of-limitations/tolling bars suit | Court: Plausible claim that Plan acted arbitrarily; refusal to convert creates factual dispute; statute-of-limitations/tolling not resolvable now — claim survives |
| Non-participating service credit (Juneau) | Juneau: Employment at Reno Hilton should be credited; records and inconsistent treatment suggest error | Defs: Denial based on property being non-participating/not a Related Company; prior Kifafi rulings not controlling here | Court: Allegations plausible, Defs didn't supply contrary records; claim survives |
| Benefits to non-spouse beneficiary of deceased participant (Betancourt) | Betancourt: As beneficiary of vested participant, he is entitled to benefits | Defs: Plan provides death benefits only to surviving spouse unless participant elected Ten-Year Certain & Life annuity; timeliness defense | Court: Complaint fails to plausibly allege entitlement (no allegation participant made required election); claim dismissed without prejudice |
| Availability of equitable relief under ERISA §502(a)(3) | Plaintiffs: Seek alternative equitable relief if benefits remedy inadequate | Defs: §502(a)(1)(B) provides adequate remedy so §502(a)(3) is duplicative | Court: Cannot determine adequacy at dismissal stage; §502(a)(3) claims for White and Juneau survive as alternatives |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard requires plausible factual allegations)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (plausibility pleading standard)
- Foster v. Sedgwick Claims Mgmt. Servs., Inc., 842 F.3d 721 (D.C. Cir. 2016) (ERISA plan denials reviewed for abuse of discretion/reasonableness when plan grants discretion)
- Kifafi v. Hilton Hotels Retirement Plan, 701 F.3d 718 (D.C. Cir. 2012) (prior litigation that certified benefit-accrual and vesting subclasses)
- Coleman v. Interco Inc. Divs.' Plans, 933 F.2d 550 (7th Cir. 1991) (explaining elapsed-time method)
- Johnson v. Buckley, 356 F.3d 1067 (9th Cir. 2004) (upholding Treasury regulations concerning service crediting methods)
- Firestone Tire & Rubber Co. v. Bruch, 76 F.3d 1205 (D.C. Cir. 1996) (statute-of-limitations dismissal inappropriate if complaint not conclusively time-barred)
- Silva v. Metropolitan Life Ins. Co., 762 F.3d 711 (8th Cir. 2014) (permitting alternative pleadings under ERISA §§502(a)(1)(B) and 502(a)(3))