Moffett v. Halliburton Energy Services, Inc.Moffett v. Halliburton Energy Services, Inc.
Plaintiff Douglas W. Moffett appeals from the dismissal with prejudice of his complaint alleging various ERISA and Wyoming state law violations by defendants Halliburton Energy Services, Inc., two Halliburton entities, and Hartford Life & Accident Insurance Co. We affirm.
BACKGROUND
Moffett was employed by Halliburton as a cementer from 1989 to 1994. During this time, Halliburton maintained an Income Disability Plan, which was subject to the Employee Retirement Income Security Act (“ERISA”),
During his employment, which involved heavy labor, Moffett suffered back injuries, as a result of which he qualified for long term disability payments of, initially, $1,649.44 per month, effective June 9,
At some point in 1996 or 1997, defendant Hartford Life & Accident Insurance Co. agreed to provide and/or administer insurance and other benefits (neither the record nor the briefs assist us in the specifics of this agreement) to Halliburton employees, including Moffett. Hartford began providing some services to Halliburton in connection with its Plan, including the determination of benefit claims. In any event, on December 19, 1997, the Halliburton defendants and Hartford entered into an agreement, entitled the “Claim Reserve BuyOut Agreement,” pursuant to which Halliburton’s self-funded reserves, totaling $20,438,000, were transferred to Hartford as a premium for an insurance policy from Hartford. Hartford then insured benefit claims under the Plan. It is unclear who the Plan administrator was following the execution of the Buy Out Agreement, although there is some evidence in the record that the Halliburton Company Benefits Committee was designated as the Plan administrator.
Hartford sent Moffett a letter on May 29, 1998, terminating his monthly disability payments, asserting that Hartford and Halliburton were entitled to a setoff for the workers’ compensation permanent partial disability award he had previously received. On August 2, 1998, Moffett received a disability determination from Social Security, and he began receiving monthly payments of $775 in November 1998.
During the subsequent twenty-two months, Moffett and Hartford exchanged correspondence, during which Moffett endeavored to determine why his benefits had been discontinued and Hartford continued to refuse to provide Moffett with any disability payments. In particular, Moffett alleges he sent correspondence to “defendants” on June 23, July 17, and August 7, 1998, “generally requesting review and rescission of the May 29, 1998, decision,” Plaintiffs First Amended Complaint (“A.C.”) at § B, ¶ 25, Appellant’s Br., App. 4 (“App.4”) at 11, and informing “defendants” that the “Workers’ Compensation award was not a ‘tort settlement’” and that he had not received a “total disability” award from anyone. Id. Finally, on February 6, 2000, Hartford sent Moffett a letter explaining that it had incorrectly terminated his benefits, and it subsequently reimbursed Moffett approximately $16,000 for benefits wrongfully withheld. Moffett does not dispute that he has received all benefits to which he is entitled.
This action followed, in which Moffett alleged that Halliburton, the Trustees and the Committee breached fiduciary duties under ERISA, including the reporting and disclosure requirements, particularly,
The Halliburton defendants filed a motion to dismiss under
Moffett appeals, arguing the district court erred in: (1) dismissing his complaint without “declaring [Moffett’s] entitlement to benefits without set off by Defendants,”' Appellant’s Br. at 12; (2) dismissing his complaint for “the failure or refusal of the Halliburton Defendants to comply with the mandatory reporting requirements of ERISA” and the refusal to provide requested information, id. at 15, 17; (3) dismissing his complaint alleging that the Halliburton defendants breached their fiduciary duties in connection with the Claim Reserve Buy Out Agreement; (4) dismissing his claims for statutory penalties and money damages under ERISA; and (5) dismissing his state law claims against Hartford as preempted.
DISCUSSION
“We review de novo the district court’s grant of a 12(b)(6) motion to dismiss, bearing in mind that ‘all well-pleaded allegations in the ... complaint are accepted as true and viewed in the light most favorable to the nonmoving party.’”
Stidham v. Peace Officer Standards and Training,
Focusing strictly on the allegations in Moffett’s complaint, we agree with the district court and defendants that he has failed to state a claim for a violation of ERISA. We consider Moffett’s claims, as articulated in his complaint, against the Halliburton defendants and against Hartford in turn.
I. Claims Against Halliburton Defendants
Moffett’s complaint contains three primary groups of claims against the Halli
Assuming Moffett seeks relief under
A. ... fail[ure] to provide written notice ...;
B. ... failure] to provide “adequate notice in writing ... setting forth the specific reasons for (the) denial, written in a manner reasonably calculated to be understood by the participant” as required by29 USC § 1133(1) ;
C. ... fail[ure] to provide “opportunity ... for a full and fair review ... of the decision denying the claim,” as required by29 USC § 1133(2) ; and
D. ... fail[ure] to provide Plaintiff with information as required by ERISA.
A.C. at § C-l, ¶ 3, App. 4 at 20. Thus, the only acts Moffett alleges violate
We first note that Moffett’s first and fourth claims, alleging “failure to provide written notice” and failure to provide “information as required by ERISA,” are vague and conclusory. We have held that an ERISA claim based upon an alleged failure to provide information is subject to dismissal under
Additionally, and more fundamentally, when Moffett accuses the defendants of failing to provide him with information about the reasons for the denial of his benefits and/or any avenues for review of that denial, he inadequately alleges a violation of section' 1133 because that section requires “every employee benefit
plan
” to “provide adequate notice in writing to any participant or beneficiary whose claim for benefits under the plan has been denied, setting forth the specific, reasons for such
In his second group of claims, Moffett’s amended complaint charged that “Defendants were under and owed Plaintiff a fiduciary duty pursuant to the provisions of ERISA
Moffett’s third group of claims is entitled “waiver, estoppel and attorney fees and costs.” As indicated, he does not pursue these on appeal.
In addition to those three groups of claims, Moffett alleges general violations of ERISA as follows: failure to provide “written notice and information required pursuant to ERISA ... at the time of commencement of coverage under the Plan,” id. at § B, ¶ 3, App. 4 at 4, as well as breach of “fiduciary obligations owed pursuant to ERISA ... at the time of commencement of coverage under the Plan.” Id. at ¶ 3a. He further asserts that the Halliburton defendants failed to inform him that they had entered into the BuyOut Agreement, but he does not articulate how that violated ERISA. He also alleges that, following the execution of the BuyOut Agreement, the Halliburton defendants did not “provide ... the name and address of the ‘Plan Administrator,’ and/or ... other information required pursuant to ERISA.” Id. at ¶ 21-6, App. 4 at 10. These vague and general allegations fail to state a claim for a violation of ERISA.
Moffett also lists the following series of alleged statutory violations: following the execution of the “Claim Reserve Buy Out Agreement,” he claims the Halliburton defendants “failed to provide the protections afforded pursuant to ERISA and the Plan, including but not limited to the protections and guarantees afforded by
Sections 1021-24 of ERISA set forth reporting and disclosure requirements for plan administrators,
see
Sections 1104, 1105 and 1109 provide for remedies for a breach of fiduciary duty, see
Finally, Moffett seeks a variety of remedies for all of the alleged ERISA violations, but he pursues none which are actually available under ERISA. His complaint requests “any relief authorized pursuant to
(a) the maximum penalties allowed pursuant to ERISA, (b) attorney fees, (c) costs and expenses, and, in the event that it is determined that ERISA is inapplicable and/or does not bar other claims, (d) loss of income, loss of property, loss of credit and credit reputation, mental and emotional distress, pain and suffering, loss of enjoyment of life and punitive damages, (f) remedies and relief afforded by29 U.S.C. § 1001 et. seq. for breach of duty by [defendants ... including remedial, equitable or other remedies provided for by29 U.S.C. § 1109 and 1132, and (e) such other damages and relief as may be allowed by law.
Id. at § B, ¶ 54, App. 4 at 19.
As indicated above, he failed to adequately allege a violation of
We accordingly affirm the district court’s grant of the Halliburton defendants’ motion to dismiss for failure to state a claim. We turn now to Moffett’s claims against Hartford.
II. Claims Against Hartford
Moffett asserts two Wyoming state law claims against Hartford: one for the “tort of insurance bad faith” and one for breach of the statutory duty to accept or reject insurance claims within a specified time period and not to refuse to pay “unreasonably] or without cause.”
“ERISA comprehensively regulates, among other things, employee welfare benefit plans that, ‘through the purchase of insurance or otherwise,’ provide medical, surgical, or hospital care, or benefits in the event of sickness, accident, disability, or death.”
Pilot Life Ins. Co. v. Dedeaux, 481
U.S. 41, 44,
Because there is no question that the tort of insurance bad faith “relates to” the Halliburton Plan, an ERISA-regulated employee benefit plan, Moffett’s state law claim for bad faith is preempted unless exempted from preemption by the saving clause. That clause exempts from preemption “any law ... which regulates insurance.”
“Our precedent provides a framework for resolving whether a state law ‘regulates insurance’ within the meaning of the saving clause.”
UNUM Life Ins. Co. v. Ward,
Relying heavily on the Supreme Court’s analysis in Pilot Life of the Mississippi law of bad faith, which the Court held did not regulate insurance and therefore was preempted by ERISA, the district court concluded that Wyoming’s law of bad faith was also preempted. We agree. As the Supreme Court observed in Pilot Life:
A common-sense view of the word “regulates” would lead to the conclusion that in order to regulate insurance, a law must not just have an impact on the insurance industry, but must be specifically directed toward that industry. Even though the Mississippi Supreme Court has identified its law of bad faith with the insurance industry, the roots of this law are firmly planted in the general principles of Mississippi tort and contract law. Any breach of contract, and not merely breach of an insurance contract, may lead to liability for punitive damages under Mississippi law.
Pilot Life,
Moffett argues that Wyoming’s tort of bad faith insurance “homes in on the insurance industry” and, like California’s notice-prejudice rule, is more uniquely directed at that industry than is the Mississippi law of bad faith. We disagree. While the Wyoming tort-based claim of bad faith insurance breach may be more narrowly applied than Mississippi’s law of bad faith, it does not “home in” on the insurance industry alone, as does California’s notice-prejudice law.
As the Wyoming Supreme Court has observed, Wyoming “has recognized a tort-based claim for breach of- the implied covenant of good faith in limited circumstances.”
Scherer Constr., LLC. v. Hedquist Constr., Inc.,
Applying the McCarran-Ferguson factors to Wyoming’s bad faith law, and con
Nor is Wyoming’s bad faith law an integral part of the policy relationship between the insured and the insurer. The “law of bad faith does not define the terms of the relationship between the insurer and the insured; it declares only that, whatever terms have been agreed upon in the insurance contract, a breach of that contract may in certain circumstances allow the policyholder to obtain punitive damages.”
Pilot Life,
We similarly hold that Moffett’s claim under
CONCLUSION
For the foregoing reasons, we AFFIRM the dismissal of Moffett’s complaint against defendants.
Notes
. We refer hereafter to these three Halliburton entities collectively as the ''Halliburton defendants.”
. He does not pursue these waiver and estop-pel claims on appeal.
. Thus, despite Moffett's references to his motion for partial summary judgment and affidavits in support thereof, we do not consider those materials.
. He also alleges that, in connection with the execution of the Buy-Out Agreement, the Halliburton defendants ! 'breached their fiduciary duties under ERISA, including reporting requirements and other fiduciary duty responsibilities.” A.C. at § B, ¶ 21-2, App. 4 at 9. We explain,
infra,
that Moffett has limited the relief he seeks for the alleged reporting violations. His other allegation regarding the breach of "other fiduciary duty responsibilities” is wholly conclusory and vague. Moffett expands upon his fiduciary duty allegations in his brief on appeal, more clearly arguing that, in his view, defendants' alleged violations of ERISA’s reporting requirements and their conduct in entering into the Buy-Out Agreement constituted a breach of fiduciary duty. However, because we are reviewing a
. To the extent he now requests, in his brief on appeal and at oral argument, declaratory relief of some kind, we must reject it because he failed to seek it in his complaint.
. Our conclusion that ERISA preempts