Williams v. Rohm and Haas Pension Plan
658 F.3d 629
| 7th Cir. | 2011Background
- This ERISA class action challenged lump-sum distributions from Rohm and Haas Pension Plan for missing COLA adjustments.
- District court found liability; on remand the Plan argued damages and statute-of-limitations issues but settlement was reached before final damages ruling.
- Proposed settlement would pay early retirees roughly 3.5% of original lump sums, with COLA-based scenarios affecting some awards.
- Adamski Objectors claimed discrimination and demanded separate counsel; Jackson objected to release of his unrelated claims and sought an opt-out.
- District court approved the settlement and awarded $43.5 million in attorney’s fees, which objectors challenged on methodology.
- Seventh Circuit affirmed both the settlement approval and the attorney’s-fees award after review of the district court’s discretion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether settlement approval was fair and reasonable | Adamski objectors argued net value to the class was inadequately analyzed. | District court adequately assessed early retirees' claims value and risks, with substantial settlement value. | Settlement approved; court did not abuse discretion. |
| Whether Jackson could opt out of the settlement | Opt-out requested to preserve claims against the disability plan; release would overreach. | Opt-out is inappropriate in ERISA class actions and the release limited to plan claims. | District court did not err in denying opt-out; settlement approved. |
Key Cases Cited
- Synfuel Techs., Inc. v. DHL Express (USA), Inc., 463 F.3d 646 (7th Cir. 2006) (district court acts as fiduciary; need for fair, adequate scrutiny)
- Mirfasihi v. Fleet Mortg. Corp., 450 F.3d 745 (7th Cir. 2006) (warning signs in settlement; court must assess value to class)
- Reynolds v. Beneficial Nat'l Bank, 288 F.3d 277 (7th Cir. 2002) (settlement considerations in class actions)
- In re Synthroid Mktg. Litig., 264 F.3d 712 (7th Cir. 2001) (ex ante bargain and market-rate fee practice)
- Taubenfeld v. AON Corp., 415 F.3d 597 (7th Cir. 2005) (evidence-based approach to determining fee market)
- McCarter v. Ret. Plan for the Dist. Mgrs of Am. Family Ins. Grp., 540 F.3d 649 (7th Cir. 2008) (regarding the scope of ERISA plan regulations and holdings)
- Laurenzano v. BCBS of Mass., Inc. Ret. Income Trust, 191 F.Supp.2d 223 (D. Mass. 2002) (fee awards in similar ERISA matters; market-rate context)
- In re Amino Acid Lysine Antitrust Litig., 918 F. Supp. 1190 (N.D. Ill. 1996) (class counsel auction evidence; criticized in Synthroid context)
