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Syed v. Hercules, Inc.
214 F.3d 155
3rd Cir.
2000
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*1 “The explained: by ultimate assessments made the instant com- ...”). may question on merits in this case plaint. be as appropriately characterized one sum, In Shreiber asks us infer a a personnel policy.’ ‘federal When federal damages remedy under Bivens for retaliatory civil is the victim of a servant protec- violation his Fifth Amendment ex discharge demotion or because he has tions process equal of due protection rights, ercised his First Amendment what agent charged an IRS auditing legal remedies are to him?” Id. available tax returns. decline to do We so because 380-81, 103 at S.Ct. 2404. we believe that Congress’s gov- efforts Schweiker, plaintiffs argued ern relationship taxpayer between the a Bivens action should inferred pro- be and the taxman indicate that Congress has

vide with additional them remedies be- provided what it adequate considers to be they cause had been denied benefits for remedial for wrongs may mechanisms Schweiker, constitutional reasons. See 487 occur in the course of relationship. Court, U.S. at 108 S.Ct. 2460. The Schweiker, 487 U.S. S.Ct. however, explained that Bush no “drew 2460. The fact complaint that Shreiber’s compensation distinction between damages not provided seeks otherwise wrong’ ‘constitutional restoration legislative scheme alleges statutory rights had unconsti- wrongful religious animus does not alter tutionally away,” taken and concluded that analysis. our comprehensive light “[i]n For Bush], above, the reasons stated we will involved [in schemes Schweiker and affirm. resulting alleged the harm from the consti-

tutional can in violation neither case

separated from resulting the harm

the denial the statutory right.” Id.

427-28, Further, 108 S.Ct. 2460. in a case

dealing with suit against agents IRS assessments,

alleging wrongful “jeopardy” Appeals Court of for the Tenth Circuit

found no distinction between Bivens ac-

tion plaintiffs based on Sajid violations of SYED, Appellant L.

First or Fourth rights, Amendment compared to one alleged based on viola- INC., corpora- HERCULES a Delaware plaintiffs process tions of rights due tion; Incorporated under the Fifth Hercules Income Amendment. See Nation- Assoc., Commodity al & Barter Protection welfare plan; 1532. The Incorporated, Court found that Bivens ac- Hercules tion Disability should not be of the inferred Plan Administrator of Plan claims because the remedies No. 99-5472. wrongful jeopardy assessment were af- (“This forded statute. See id. reason- of Appeals, United States Court a Bivens [denying action for a violation Third Circuit. equally Fifth appli- Amendment] Argued Jan. grounded cable to the claim on allegations of wrongful jeopardy assessments here un- Filed May der the First Fourth Amendments.

In light of the remedies afforded else-

where, recognize we decline to First

Fourth Amendment remedy Bivens based

on the allegations wrongful jeopardy *2 (Argued), Wilmington,

John M. Stull DE, Appellant. Potter, two (Argued), provides

Kevin R. Shannon definitions total disability, Corroon, LLP, Wilmington, applies one that first 24 Anderson & months after DE, period” the “elimination Appellee. another applies thereafter. The Plan states: *3 BECKER, Judge, Chief Before: During period, normally elimination BARRY, Judges. ALITO and Circuit months, and the first 24 months payments, you are considered THE OPINION OF COURT totally if you disabled are not able to perform your job. You must not engage ALITO, Judge: Circuit in work wages during for or profit injured in Sajid Syed (“Syed”) his back this time. 1992, January working while as chemical receiving monthly After payments, Hercules, (“Hercules”). operator for Inc. you are totally considered disabled for under Syed brought this action ERISA long you as as are not able engage to in 502(a)(1)(B), 1132(a)(1)(B), 29 U.S.C. any employment wage profit him alleging that Hercules denied disabili- you reasonably which qualified by ty company’s benefits em- owed under education, training, experience. ployee plan. benefits addition to dam- App. at B24. Syed ages, requested imposition paying Syed After benefits to for almost against sanctions failure to Hercules for years, two Provident Life and Accident provide him plan pursu- with the document (“Provident”), Insurance Co. the Claims ant written request, required to as Fiduciary Syed under asked 502(c), 1132(c). He ERISA 29 U.S.C. undergo independent medical evalua- sought also redress for Hercules’s failure tion in February 1994 determine if he adequate him give written notice of the totally was disabled under the latter defi- claim, reasons the denial his as Joson, nition. Dr. performed who the ex- 503, required by ERISA U.S.C. reported amination March Syed appeals 1133. the District Court’s Syed heavy could not do but that he grant of summary judgment favor of “sedentary light” could do work. App. Hercules all counts. We affirm. Syed longer at A4. no qual- Because would discharged Syed Hercules on March ify for benefits after the 24-month period 31, 1992, March of a part effective (cid:127) lapsed, Syed Provident notified that his Following reduction force. his termi- benefits would be terminated as March nation, Syed a claim for long- submitted 31,1994. See id. A6-7. term benefits under Hercules Syed appealed the decision to terminate (the Incorporated Income Protection Plan his disability benefits Provident’s “Plan”). approved His claim was on June Committee, upheld previ- Syed began receiving bene- App. Syed ous decision. See at A19-20. 1,1992. April fits retroactive appeal renewed his to the Commit- are payable Benefits the Plan 28, 1994, July tee on 27 and October each totally when worker becomes disabled updated time including reports. medical and remains disabled for six consecutive The ERISA Committee its final deni- sent Syed months.1 App. at B21. Because Syed al of benefits to letter dated No- receiving 24, 1995, was under 62 when he started 1994. On February vember benefits, eligible he was to receive benefits copy docu- requested plan disabled, long totally for as as he remained ment that was effective as of the date he up age began at B22. receiving id. The Plan benefits. Hercules sent period, ceiving 1. This six-month known as the "elimi- benefits less three months after period,” apparently imposed nation by workplace accident. Syed’s began Provident case. He re- period time “Summary document for relevant Plan entitled him document (SPD). judgment granted summary at B15-32. and therefore App. Description” on this count. Like- in favor of Hercules 6,1996 February Syed filed suit —one wise, refused to remand the Court the initial months after year and eleven for an to the administrator out- on March denial of the al- appeal administrative of-time the final after three months year one because leged violation of ERISA dated November Provident letter from adequately 31 letter set Hercules’s March thereafter, he a motion Shortly filed bene- denying forth the reasons seeking recovery summary judgment fits. 502(a)(1)(B), under ERISA *4 502(c) to pro- § for failure under sanctions appeal. arguments makes on Syed four a response to Plan duce the document First, claim contends that his ERISA he § remedy under and request, written governed employee benefits should be for notice provide to written for failure of limita- Delaware’s of benefits. Her- termination reasons for actions, one-year for contract not the tions summary a cross-motion for cules made work, out la- arising for claims money Syed owed claiming that judgment, bor, performed. services Sec- personal the Plan. made under overpayments ond, Hercules, as Plan he maintains Syed’s mo- denied The District Court Administrator, subject to sanc- should be Fidu- gave Claims tion. As Plan failing provide proper to disclo- tions exclusive, deny ciary the discretion 502(c). § required ERISA sure as benefits, District Court re- claims for Third, Syed that Hercules violated argues 502(a)(1)(B) claim under § Syed’s viewed by failing provide § 503 ERISA both in accor- standard the abuse discretion his reasons for denial of specific Rubber and Co. dance Firestone Tire by neglecting any to name additional Bruch, 109 S.Ct. U.S. material or information would (1989); Abnathya see also 103 L.Ed.2d 80 perfect Finally, claim. helped him his Roche, v. Hoffmann-La that the District Court should Syed asserts (3d Cir.1993). reviewing the medical After over the plenary have exercised review evidence, Court found the District deny Fiduciary’s decision to his Claims as to whether genuine there issue benefits, reviewing rather than arbitrarily capricious- Provident acted discretion, did as the Plan abuse terminating Syed’s medical benefits. ly Fiduciary grant discretion to Claims Nonetheless, Delaware’s borrowing after determination. Because make applicable of limitations one-year statute one-year statute we hold that Delaware’s arising from to claims for “other benefits action, we af- governs of limitations work, personal per- services ... labor or summary grant firm the District Court’s formed,” C. Court 10 Del. 502(a)(1)(B) judgment Syed’s summary for Hercules granted judgment deci- deciding without whether Provident’s on this claim. arbitrary deny Syed’s benefits was sion Next, Syed’s dismissed capricious. We likewise affirm 502(c) 502(c) provides claim. ERISA District Court’s dismissal 502(c) with a comply must that an administrator §§ under ERISA and 503. partici- by request for information liability fail-

pant imposes personal 502(a)(1)(B): Statute ERISA that Hercu- contended ure do so. Limitations SPD, rather sent him improperly les B60, this appeal con chief issue Policy, App. Insurance see However, ap limitations that is cerns the statute of request. response claim for benefits under plicable operative the SPD was the Court held that 502(a)(1)(B).2 Unfortunately, No action to damages recover for tres- not provide a statute of limi- pass, regain does no action to possession of chattels, brought personal suits tations ... no action based benefits, to recover and the a promise, ... brought shall be after new, general expiration federal statute of limitations of years from the accru- set in U.S.C. out does the cause of such action. in this situation.3 circum- Under these 10, § tit. DelCode Ann. (emphasis stances, generally turn courts to the most added). Delaware also has a more analogous state statute of limitations. See covering DelCostello v. International Bhd. Team- disputes, provides: sters, 151, 158-60, S.Ct. U.S. recovery No action for upon claim of (1983). Although 76 L.Ed.2d this Cir- wages, salary, work, or overtime for la- cuit has not decided which state statute or personal bor performed, services ... applicable to ERISA other 502(a)(1)(B),4 every other circuit to ad- such labor or services dress the issue has the statute performed ... shall after the *5 limitations a state contract action. See expiration year of one from accruing the Digital Harrison v. Health 183 F.3d of action on cause which such (11th 1235, Cir.1999); v. Daill action is based. Sheet Metal Workers’ Local 73 Pension 10, § Ann. tit. 8111 (emphasis DelCode Fund, (7th 62, Cir.1996); 100 F.3d 65 added). case, In this the District Court Armco, 650, (8th

Adamson v. 44 F.3d 652 8111, applied v. relying Mitchell E.I. Cir.1995); Foods, Hogan v. 969 F.2d Kraft 641, Dupont Denemours & 310 A.2d Cir.1992); 145 v. Meade Pension (Del.1973). 642 Comm., Appeals & Review 966 F.2d Mitchell, In Supreme the Delaware (6th Cir.1992); v. Held Manufacturers (now 8111) applied Court Leasing Corp., Hanover 912 F.2d challenging the denial of benefits (10th Cir.1990); County Pierce Hotel a disability plan. under wage Mitch- See & Employees Restaurant Employees ell, 310 A.2d at 642. The Court reasoned v. Lodge, Health Trust Elks 827 F.2d that the at was issue a “benefit” (9th Cir.1987); Dameron Sinai work, labor, arising from or services per- (4th Cir.1987). Hosp., 815 F.2d formed within the meaning of the statute Delaware, essence, Because has two because eligibility for the accrued disputes, statutes limitation for contract job. from tenure on the See id. Although however, must we determine which present the District Court case mis- appropriate. more takenly referred to Mitchell as an ERISA (Mitchell

Delaware Code establishes was in 1973 decided gener- 1974), limitations ERISA was not effective until a promise. al actions on application predecessor See Goldman 8111’s Braunstein’s, (Del. 240 A.2d pre-ERISA strong context is evidence of 1968). provides: Section 8106 close relationship to the ERISA claim plenary suggested 2. We previously exercise review 4.We have over District in dicta that applicable Court's choice Jersey the New state statute of limitations for County Alleghe- See limitations. Nelson apply a contract action would to claims under (3d Cir.1995). ny, 60 F.3d 502(a)(1)(B), but we have never squarely decided the issue. See Connell v. provision, prescribes four-year This Trustees Pension Fund Ironworkers Dist. period, applies only limitations ing to claims aris- Jersey, Council New 156 n. ofN. Congress under acts of enacted after De- (3d4 cember 1990. ERISA was enacted much earlier. employment also Sorensen v. have been earned had contin- See asserts. ued. See id. Since bene- Corp., Overland already “earned” his (D.Del.1956) (“The through pe- fits were year statute has a one Hercules, employment riod of Rich does It was intended to comprehensive sweep. argument support employer- out arising all bar apply should here. The Act relationship. bars employee ‘salary’, and it ^wages’, claims for likewise Shaw, Superior the Delaware any other and to ‘ben- applies ‘overtime’ apply employ- refused to 8111 where an corporate-officer efits’ employer’s an action-under the ee The ‘ben- relationship. word employment voluntary policy. group accident insurance embracing all advan- and covers efits’ is Shaw, 385. The employment.”). tages growing out of the injured workplace injury in a which result- permanent disability. ed total The dealt with a similar Eighth Circuit employer argued 8111 should Armco, 44 F.3d Adamson v. issue in coverage to the claim because (8th Cir.1995). There, Court had to arose out stat- six-year Minnesota’s choose between relationship. (relying id. general governing con- ute Mitchell). The Court dismissed defen- two-year and the state’s disputes tract argument summarily. id. dant’s wage claims. (“That contention of the defendant is with- wage-claim The Court reasoned merit.”). Instead, out the Court of limitations was the most analo- two-year Delaware’s statute of limitations gous appellant’s to the *6 personal injury claims. DelCode uniformly had because Minnesota courts immediately § It not is clear how broadly to cover all that applied statute case, distinguishable Syed’s from Shaw is damages arising out of the re- pointed and Hercules out Adamson, 44 at lationship. See Nonetheless, meaningful distinction. be- conclusion, its the Court support of explain cause the Shaw Court failed to law in pre-ERISA noted that Minne- §why apply, we find should two-year of sota had statute to more persuasive. Mitchell unpaid of benefits. limitations to cases Shakopee id. Kohout v. Found- (citing § Although Syed’s Co., ry 281 Minn. 162 N.W.2d 237 spe claim comes within Delaware’s more (1968)). cific statute limitations for claims aris of ing employer-employee out of the relation primarily relies on two cases to ship, conclusively that does not resolve the application of argument bolster his all, appro After of issue. the selection an Zeneca, Inc., F.Supp. § 8106: Rich is a priate question statute of limitations (D.Del.1994) and Shaw Aetna Life law. See United Auto. Workers v. (Del.Su- Insurance 395 A.2d 384 Hoosier, 696, 706, 383 U.S. 86 S.Ct. § Rich held that per.Ct.1978). (1966). 16 L.Ed.2d 192 to a claim under apply should ERISA wrongful ter- 29 U.S.C. Generally, presume Congress that we mo- pension-defeating mination based on a apply closely courts to intended Rich, (citing tive. analogous state statute limitations. See Braunstein’s, DelCostello, A.2d Goldman 462 U.S. 103 S.Ct. (Del.1968)). The Rich chose principle assump- 2281. This rests on the 8111 because the “Congress likely 8106 rather tion would intend applies latter to claims for breach of a previous practice that courts follow their earned, promise pay something already borrowing Id. at 158-59 n. state statutes.” mindful applies whereas the former claims for 103 S.Ct. 2281. We remain warning not to pay Supreme breach of a what would the Court’s promise mechanically Company....” Appendix state statutes of limitation to Answer- do legislatures (Summary not devise Brief at B20 Plan Descrip- “[s]tate since tion). Second, in- periods with national ERISA their often mind, duty See, “fringe terests in and it is the e.g., termed benefits.” Brick- importa- federal courts to assure that the layers and Allied Int’l Union Craftsmen of state law will not frustrate inter- tion Local S3 Funds v. America’s Mar- Benefit implementation Source, Inc., (3d fere with the of national ble policies.” Cir.1991).5 Occidental Co. v. Ins. We are to agree inclined with EEOC, 355, 367, 432 U.S. S.Ct. 53 the dissent that the one-year limitations (1977). Nonetheless, L.Ed.2d there is period of 8111 is not optimal, we reject no reason to unless uniform, also believe that a stat- national we find it “inconsistent with national labor Syed’s ute limitations for claims such as Workers, policy.” Auto U.S. 86 would be But identify beneficial. forced to S.Ct. 1107. analogous the most Delaware statute of limitations, we agree with the District case, recognize In this we that the Court that 8111 the best fit.6 one-year short, say but we cannot that it is inconsis 502(c)

tent with the of ERISA. We there agree fore with the District Court Syed urges impose the Court by § governed 8111 and provide Hercules failing sanctions on was thus barred. pursuant the Plan document to a written arguments persuaded We are not 502(c) request. provides support advanced the dissent comply administrator must position request plan partic for information from a ordinary benefits is more ipant personal within 30 days face liabil claim, subject contract than to a discretion, ity, day at the Court’s $100 claim for “other benefits ... from the date of the refusal. 29 U.S.C. services,” subject labor or *7 1132(c). The District Court did not Noting to that the Mitchell court refusing abuse its discretion in to order provid- at plan described the issue there as Hercules, against sanctions and we affirm benefit,” “fringe argues the dissent on grant summary judgment the ... “Syed’s nothing has little or issue. performed to do with work or services or benefits....,” fringe Syed at but sent the on March Dissent Hercules SPD First, 22, 1995, February 24, simply response this is not true. to his squarely prior employ- request complete copy based on his written for “a ment. In order to under the of LTD Plan document as of qualify long effective “a disability plan, regu- App. Syed term he had to be March 1992.” at A28. con- lar, non-represented full-time tends that different document was in (Dissent Wage Pay- 5. We note view also that Delaware’s of the dissent's reference 3) Pennsylvania Wage Pay- footnote to the (WPCA), ment and Act Collection Del.Code Law, ment and Collection seq., 43 P.S. 260.1 el 1101-1115, §§ Ann. tit. defines ''benefits" statute, has a see 43 Pa. "compensation as other than § 260.9a(g), we to Cons.Stat. Ann. wish make to, wages, including, but not limited reim- express regarding it clear that we no view health, expenses, welfare bursement or statute of limitations that would claim such as if a retirement benefits....” Del.Code Ann. tit. Syed's were in Penn- 1109(b). Although does WPCA not note, however, sylvania. We that we have provide statutory remedy for the denial of governed by are held some benefits, quite clearly its definition encom- and others the WCPL's Syed passes disability sued to Unisys Corp., not. are See Gluck (3d recover here. of denial injured lished that written notice time he was at the effect Specifi- claim must: his benefits were denied. the time to the insurance cally, points he every claimant who has been provide to long-term disabili- to fund Hercules’s used written no- denied a claim for benefits (LTD). App. at B35-72. ty plan setting tice forth in manner calculated the claimant: to understood LTD re- A of the SPD and comparison (1) or reason reasons material differences between the veals no denial; complains he two documents. (2) Specific pertinent to reference verify “whether the defini- was not able based; the denial is provisions which on official disability tion of based (3) or some internal language, description SPD A additional mate- language, Appellant’s necessary unwritten.” rial information for the written or policy, argument perfect lacks merit. claim and an Br. 20. This claimant 31, 1994, why the March letter material or in- example, explanation For such A6, benefits, App. see necessary; and denying formation is disability of total quotes the definition (4) information to the Appropriate as SPD, App. at see page found at if steps participant to be taken exactly the definition is same B24. This his or beneficiary wishes submit her disability definition of total found claim for review. B43, LTD, App. at thus 3 of the see page 29 C.F.R. 2560.503-1®. that the two-tier belying Syed’s assertion previously held that We not did exist definition forth disclosure obli 503 sets SPD, at 22. The affi- Appellant’s Br. see gations “the Plan” and that it does not Hill, Employ- Director of Douglas davit of obligations establish those en Hercules, clear that ee makes Benefits through sanctions forceable allegedly refused the document Hercules 502(c). Retire See Groves Modified Syed pursuant his March to send Plan, (3d 80S F.2d Cir. ment was, fact, executed request 1986). termination letter does Where a it was effec- (although until October 1995 regula comply with the 1990). July Because retroactively tive limits tory the time requirements, LTD are identical in all the SPD and the appeal bringing an administrative are not respects dispute, material to this Dis- claimant. against Ep enforced properly impose trict refused right v. Environmental Resources Man Hercules under against sanctions agement, Inc. Health and Welfare 1132(c). 502(c), 29 U.S.C. *8 Cir.1996). (3d Thus, 335, 342 remedy § for a violation of 503 is re § ERISA 503 plan mand to the administrator so the pertinent § provides, ERISA full gets claimant the benefit of a and fair every employee part, that Home review. See Weaver v. Phoenix shall: Co., Ins. Mut. notice in provide adequate writing beneficiary or whose participant 31, 1994, The March letter from claim for benefits under the has Syed began quotation with a Provident denied, setting been forth the the Plan’s definition of total disabili from denial, reasons for written in such Next, at A6. the letter ex ty. App. See manner calculated to be understood plained Syed’s being that benefits were participant. Dr. because the results of Jo- terminated 1133(1). medical dem independent § evaluation Pursuant to sec- son’s U.S.C. tion, longer totally Syed that was no Secretary of Labor estab- onstrated disabled the term defined in the have also concluded that a state contract Plan. at A6-7. The letter on App. went limitations is most analogous to jobs identify Syed 502(a)(1)(B) several which §a is, indeed, claim. This qualified given present physi- would be resounding chorus. cal App. condition. See A7. Provident here, however, The rub is this. The Syed stated that could submit a request majority “Delaware, concludes that in es- decision,

for reconsideration of the accom- sence, has two statutes of panied by Syed’s documents from physi- disputes,” contract specifically § 8106 and cian. Lastly, See id. letter noted that one, § course, and must select- be any information to be considered in con- ed. The majority then § selects an appeal nection with would have to which relates to wages, claims “for salary, days received within 60 receipt work, or overtime personal labor or short, the letter. See id. Provident performed services ... or for any other fully complied with regu- such labor or latory requirements for notice under being services” as specific” § “more ERISA has not raised and, thus, analogous any genuine issue to a claim of material fact to the contrary. denied Accordingly, we affirm benefits under the Dis- grant trict the statute summary judgment traditionally Court’s used contract, as to claim Delaware for breach promise, U.S.C. breach of actions. agree While I that specific,” 8111 is simply “more it BARRY, Circuit Judge, concurring apply does not that ERISA dissenting. benefits were wrongly denied. agree While I with much the majori- ty’s I opinion, cannot agree with the con- Delaware courts restrict 8111 and its clusion that' the most state stat- one-year statute to work services which ute of limitations for a already have performed been apply is found in Delaware’s It is promise 8106 to a of compensation for issue, alone, and that I issue work or services be performed. dissent. action, words, § 8111 in other is based on performed the services rather

First, than on the clear, notes, it is as the majority original promise while the action every circuit which has addressed this based the underlying promise re- issue has the statute of limitations spect yet completed. to services not contract action as most analo- Braunstein’s, Goldman gous to an ERISA claim for the denial (Del.1968); we, Brown notes, benefits. As v. Colonial majority also too, (Del.Su- suggested, dicta, Chevrolet A.2d albeit Moreover, per.Ct.1968).1 the state statute of limitations for a con- tract work or per- action would services which have claims under 502(a)(1)(B). formed have been See Connell described the ease on Trustees of the Pension Fund majority primarily the Iromvorkers Disk relies as *9 Council Jersey, Northern New “fringe” Dupont 118 F.3d benefits. Mitchell v. E.I. of (3d Cir.1997). (Del. Moreover, 156 n. Denemours & 1973). district courts too numerous to fringe typi- mention for Claims benefits are action, 1. majority acknowledges, As the selecting the limitation on the cause federal of the appropriate 'closing gap’ by limitations is a matter federal court the is left Con- federal, state, law, gress and thus body our task in order fashion predict not to supplement which statute law the common the federal statu- Supreme Digital might toiy Delaware an cause of action.” Harrison v. select for Plan, Rather, (11th borrowing ERISA claim. Health "in the F.3d 1238-39 impose a time v. Int’l Bd. Team- e.g., Com- Jenkins Local 705 governed by 8111. cally Plan, 713 F.2d 252-53 72 sters Pension Corp., American Mirrex pass v. (7th Cir.1983); Hogan (D.Del.l999)(claim see also F.Supp.2d Kraft Foods, Cir. 8111); by § unpaid governed bonus 1992)(“[The] interpreta- claim involves the Bracken, Industries, Inc. v. SCOA contract[.]”); annuity tion of the Meade (Del.l977)(claim for year-end A.2d Comm., Appeals and Review Pension “wages” gov- and equivalent bonus was (6th Cir.l992)(“[T]he F.2d Plan at 8111). §by erned this case constitutes written issue case, Mitchell, the Su- pre-ERISA benefits].”); [for contract John- of Delaware determined preme Court Amer- son v. State Mut. Assur. Co. Delaware’s Disabil- action under Mitchell’s (8th Cir.l991)(not- ica, § 8111. governed by Plan was ity Wage by policy governed that life insurance however, had Disability Wage The money pay “is written promise eligibili- requirement and one one condition, death, if a accidental specified year of continuous ser- ty least one future”). in the occurs —“at benefit,” “fringe was a vice.” The Plan Here, Jenkins, as in it is Plan which Court, to Mitchell which accrued said the Syed’s claim for will dictate the outcome of had the one simply she worked for because unpaid disability benefits.2 There sim “performed.” “work” had been year —her concluding ply no reasoned basis Mitchell, A.2d at 642. employer fringe given benefits arising from employee, i.e. “benefits however, claim, has or noth- little ... per labor or services performed ing to do with work or services formed,” should be stretched include the fringe everything to do benefits has very pension different and health benefits disability based on an benefits that is governed plan an ERISA sub analysis the Plan doc- interpretation and ject The ma interpretation.3 to contract uments, required in a analysis akin to the rejoinder to this is not jority’s two-fold claim: of contract traditional breach majority The persuasive. point misses action to brought The [claimant] hardly by stating startling proposition due him allegedly benefits recover “Syed’s squarely claim was based on employee pension bene- terms “hardly startling” his prior employment,” clarify fit course, and to enforce Syed, had and/or because that Plan. The rights under the terms of an an to have that, plan and employee pension Beyond majority’s benefit claim. citation preemption ... are in written form. case—a predecessor to one Jersey, not Dela Each the Plans contain extensive and emanated from New proposition that ERISA governing and conditions ware—for detailed terms fringe participants all “often” termed rights and duties of disingenuous. category is somewhat the fund. statute, Pennsylvania plans has a similar It bears that ERISA in- also mention Law, parties employment relation- Wage Payment volve outside the 43 P.S. Collection members, ship family such as insurance Greyhound seq. Ferguson § 260.1 et administrator, company, and Trust, Disability Retirement and as well a that reason (W.D.Pa.l985)(rejecting wage use of squarely fit within 8111. See Har- does not statute —and other statutes limitations —as rison, (noting that 183 F.3d at 1241-42 stating is an ac- "[t]his may involve non-work related ERISA claims recovery under the of benefits due tion and, thus, concluding injuries or illnesses plan[.J employee pension terms of *10 was more of contract statute breach analogous the is most We believe that analogous claims law.”). to contract statute). compensation workers Rich, which the Con Jersey F.Supp. of funds to New The Court con- Fringe Security struction Workers’ Benefit cluded that Rich’s claims were most analo- applied issue in that case Act at consisted gous to the breach of contract and breach entirely if benefit “largely promise claims asserted in Goldman governed by Bricklayers ERISA.” plans and, thus, and Brown subject to the Inti S3 and Allied Union Local three-year § 8106 statute of limitations. Craftsmen v. America’s Marble Source Funds id. at Parenthetically, 165-66. the Benefit Inc., (3d Cir.1991). 114,118 majority’s effort distinguish by Rich shoe-horning Syed’s case into “work per- aside, majority also invokes Mitchell formed” because his benefits have been a case 1956 District Delaware “earned” makes no both sense on its face encompass 8111 meant to states is and because those contracted-for benefits disputes all arising employment can be “earned” when certain crite- relationship. See Sorensen Overland met, ria —criteria in (D.Del.1956), stated the Plan —are a ajfd, Corp., F.Supp. 354 (3d Cir.1957). finding which cannot now be made.4 Separate 242 F.2d 70 apart sweeping from the fact In post-ERISA the second District of language emanates from a case decided case, Court, Delaware referencing a long before ERISA was even twinkle interpretation” what it called the “broad which the Congress’s eye, statement Sorensen, § 8111 in found that the bonus majority quotes has been in at qualified issue—a “fringe” clear benefit —was two posi-ERISA least District Delaware subject one-year 8111’s statute of lim- Zeneca, cases. Rich v. The itations. Court summarized the dis- (D.Del.1994), by relied F.Supp. tinction between 8106 and 8111: Syed, the District found Mitchell If plaintiff alleges a breach a duty a “fairly statement in and the broad” Soren- provide to pay wages benefits or inapplicable claim under sen to Rich’s already work performed, then the one in- employer wrongfully ERISA that year statute of limitations section pension terfered with his attainment of hand, 8111 governs. On the other if employment benefits: plaintiff alleges employer that his year 8111 and its one statute of limita- duty arising breached a different out of wage, salary tions for agreement, then the being compre- should not read as so year three sec- bar arising hensive as to all claims out of applies. tion 8106 employer-employee relationship. Compass, F.Supp.2d at 467. Just such Rather is to claims [§ 8111] directed duty” a alleged “different here. alleging a a duty pay wages, breach of Directory See also DeWitt Penn-Del salary performed. or overtime for work (D.Del. Corp., 134r-35 Where, here, plaintiff alleges that a 1994) (§ 8106 stat- duty defendant has breached different claim). ute of limitations ERISA 510 employer-employee out re- lationship, Finally, majority Eighth another statute of limitations cites 1995 may apply to the plaintiffs claim. Circuit case which Minnesota’s majority rejects injury perfect second relied on sonal claims was fit. I note, worth, primarily because the Court in for what it is virtue of explain why subsequent personal inju- case did not it found amendments to ("PIP”) ry protection inapplicable group provisions under a to claim Dela- Statute, inju- accident insurance ware's No Fault Insurance actions disability. resulting See Shaw causes ries v. Aetna PIP benefits now Co., (Del.Su- action, subject Ins. to the clear, however, per.Ct.1978). very why Harper It limitations of 8106. See State (Del. very the Shaw Court found as it did: Farm Mut. Auto. Ins. 703 A.2d 136 1997). per- two-year statute of limitations for

166 Therefore, we of hold wage contract insurance. of limitations for two-year statute to a statute of limitations analogous claims as more claim.”); 502(a)(1)(B) six-year stat- plaintiffs than the to Nikaido v. applies Co., dis- contract 42 governing limitations Ins. F.3d ute of Centennial Life Armco, Inc., 44 (9th Adamson putes. Cir.l994)(using “limita- California’s cert, denied, (8th Cir.), 516 U.S. F.3d 650 disability poli- specifically tions statute (1995). 133 L.Ed.2d 116 S.Ct. general cies” rather than breach con- courts have not that Minnesota Conceding tract where ERISA Plan contained statute whether claims had determine occasion in- provision similar California’s under an ERISA employee benefits code); Duchek v. surance Blue Cross claims, Adamson Court wage Nebraska, F.3d Blue Shield doubt,” cited “hardly but found the issue (8th Cir.l998)(applying Nebraska 649-50 “hardly conclu- in doubt” support to action for benefits Insurance Statute cases pre-ERISA involving only sion ERISA). put As the Duchek Court but for claims not it: benefits, salary increases unpaid vacation to characterize [I]t would be anomalous “adjustment all benefits.” 44 fringe this suit a contract action then as support. Hardly ringing F.3d 653. generic contract borrow Nebraska’s me, is, thus, clear, at least It rather limitations contract 8106’s statute of specific Nebraska section insur- analogous to an ERISA actions more ance laws contractual permitting than that the denial of benefits claim for question. limitation in Moreover, in our search found in 8111.5 F.3d 649-50. statute, are not analogous we most concluding that majority, after reviewing the two necessarily limited Syed’s claim within 8111’s statute comes might appro- us. It well be presented to limitations, recognizes does that that therefore, to consider Delaware’s priate, conclusively issue because the resolve the three-year statute of limitations for claims of limitations must not be selected statute policies, insurance alleging breach of policy.” national “inconsistent with labor con- Other circuits have Del. C. is, indeed, quite It clear that a state’s state statutes are the cluded that similar of limitations for ERISA claims statute analogous most applica- only long will be borrowed “so as limi- supply appropriate period tion time of state statute’s would See, Ins. e.g., Lang v. Aetna tations. (10th Cir.1999) policy.” impede effectuation (“Our County Employees Pierce Hotel and Res- analo- duty ... is to choose most Employees taurant Health Trust v. Elks statute of limitation. While gous state Cir.1987); Lodge, 827 F.2d upon claim is a based plaintiffs (“In Jenkins, contract, precisely upon based see also it is more passing passing, and be- claim that based on state statute he should I note in it, parties have not discussed registered employer cause the have been to receive provides a §8106 also higher wages). 8106 has also Section on a Delaware based statute”. "aclion[s] provide the found to limitations for provision courts have 8106/ claim, a claim "based on federal RICO Williams, disputes. See Johnson v. General Teamsters statute.” Creamer (Del.Su- 728 A.2d Local Union per.Ct.l998)(concluding that lower court's (D.Del.1984). indisputably sought §of fireman line-of- use 8106 where based on a statute —ERISA—and because the duty disability pursuant to stat- simply apply, § 8111 does not more based was not ute as an "action on statute” arguably appropriate candi- 8106 is more erroneous); clearly Co., v. Haber Elec. Vassallo statute of limita- date for (Del.Su- tions for this reason well. plaintiffs per.Ct.l981)(applying *12 167 determining appropriate consider this unfortunate result. See limitations, Johnson, (“Either of the court must statute be 942 F.2d 1266 Con- cognizant underlying of examine the ERISA, gress, by amending or the Mis- of nature the federal claim as well as the Legislature souri is free to modify the policies majority, involvedThe statute of limitations. Until such legisla- one-year finding while 8111’s action, hold, tive required we are consis- “short,” limitations and while choos- law, tent with Missouri that plaintiff ‘s ing policy to discuss the behind claim to enforce defendant’s written prom- ERISA, simply concludes that it “cannot ise for payment money governed say” one-year limitations is by limitations.”).' ten-year that policy. inconsistent with That conclu- One final Supreme note. The sion is so clear to me. Delaware instructed that when a Dela- ERISA, enacting “Congress sought ware court inis doubt as which of two protect the interests of participants control, statutes limitations it should plans by regulating Sacks, choose the longer. See v. Sonne plans pro- administration of such (Del.1973). Indeed, we, 196 viding participants beneficiaries ourselves, recognized principle variety compliance remedies assure to. a diversity dealing with an 8106 and Harrison, with the framework.” dispute. v. Lindsey M.A. Zec- 1239; 183 F.3d see also Held v. Manu- Sons, Inc., (3d cola & 26 F.3d Leasing Corp., Hanover 912 F.2d facturers we, course, Although are not Cir.l990)(“The 1197, 1202 principal instruction, bound to follow that sensible purpose of is to protect employees’ choosing the concededly applicable longer rights to under a plan.”). covered period of limitations would not say While I cannot applying l’s further the federal behind (which, one-year statute of limitations it bring but would into Delaware line with all remembered, claim) must be bars of the other in which substantially states so as to impede unreasonable the effectua- longer statutes of limitations are applied policy, surely tion of federal I cannot say period one-year applica- deemed Congress’s that we are furthering clearly ble I respectfully here. dissent. goal by concluding stated that Delaware’s employees have much period shorter

time within which to file claims for the

wrongful denial of benefits than employees virtually every Perhaps other state.6 Legislature obliged

the Delaware will feel Broth, Meade, e.g., Carey period); (apply- v. Int’l Elec. Workers 966 F.2d at Local 363 Pension 201 F.3d 46-47 fifteen-year period); Ohio’s limitations (2d six-year Cir.l999)(applying New York's Wright Telephone v. Southwestern Bell period); Lang, limitations 196 F.3d at 1104 (10th Cir.l991)(applying 925 F.2d (applying od); three-year peri- Utah's limitations five-year period); Oklahoma’s limitations Harrison, (applying 183 F.3d at 1239-40 Pierce, Washing- (applying 827 F.2d at 1328 Georgia’s six-year period); Dú- limitations six-year period); ton’s Car- limitations Hawaii chele, (applying F.3d at 649-50 Nebras- penters Carpenter Shop, Trust Funds Waiola three-year period); ka’s limitations Blue Cross (9th Cir.l987)(ap- 823 F.2d 297-98 Sanders, & Blue Shield Alabama six-year plying period); Hawaii's limitations (11th Cir.l998)(applying F.3d Ala- Baltimore, Inc., Hosp. Dameron v. Sinai Daill, limitations); six-year bama's 100 F.3d (4th Cir.l987)(applying (applying ten-year at 65 Illinois’ limitations Maryland's three-year period); limitations Nikaido, period); (applying F.3d Indus., Trustees Alaska Laborers-Constr. period); California's limitations Ferrell, Health Sec. Fund Hogan, (applying 969 F.2d at 145 Texas' four- (9th Cir.l987)(applying six-year Alaska’s Johnson, year period); limitations F.2d at period). (applying ten-year Missouri's

Case Details

Case Name: Syed v. Hercules, Inc.
Court Name: Court of Appeals for the Third Circuit
Date Published: May 31, 2000
Citation: 214 F.3d 155
Docket Number: 99-5472
Court Abbreviation: 3rd Cir.
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