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William L. McClure Jr. v. Zoecon, Inc., F/k/a Zoecon Industries, Inc.
936 F.2d 777
5th Cir.
1991
Check Treatment

*1 Before JOLLY and SMITH, Judges. Circuit JOLLY, Judge:

E. GRADY yеars day Exactly four after Zoe- con fired William McClure suit his erstwhile er, alleging that Zoecon receipt him in order to forestall his of medi- benefits, disability cal and violation 1140.1 The Unit- U.S.C. ed States District Court for the Northern summarily of Texas dismissed the District two-year suit as time-barred applicable wrong- statute of limitations discharge discrimina- claims, appeal. prompting the instant applied the district court We believe proper Texas limitations statute and thus affirm. few, largely in this case are

The facts undisputed, great and not of relevance. April around Sometime accepted a written offer of received and as- employment from Zoecon. McClure duties on 8 of that same sumed his subchapter, or the Welfare and Pension Plans reads as follows: § 510 any Act. It shall be unlawful for any person Disclosure It shall be unlawful for to dis- fine, fine, suspend, expel, discipline, person discharge, or charge, suspend, expel, or dis- beneficiary against any person criminate because he discriminate exercising any right to he is entitled or is has information or has testified provisions under the plan, of an proceeding testify any inquiry about to title, subchapter, this section 1201 of this relating chaрter or the Welfare to this Plans Disclosure or the Welfare and Pension provisions Act. The Pension Plans Disclosure Act, or for the with the applicable of this title shall be of section 1132 any right partici- to which such attainment enforcemеnt of this section. pant entitled under the this become *2 thereafter, year; shortly he gants part was transfer- company only respect with group” Zoecon’s “residue red from proper characterization of a 510 lab,” “quality aрparently on ac- control claim. Zoecon—as well as the court be- personality count clashes that he had low—thinks a 510 suit most ‍‌​​​​‌‌‌‌‌​‌‌‌​​​‌​​‌​​‌‌‌​‌‌‌‌​​​​‌‌‌‌‌​​‌‌‌‌​​‍similar to a group supervisor. had with the residue wrongful discharge or employment discrim- and, ination clаim consequently, subject to true, allegations If McClure’s the two-year prescription period ap- Texas personality proved costly. clashes He con- plies to such claims. See Tex.Civ.Prac. & February tends that of 1985 he was (Vеrnon 1986). Rem.Code 16.003 exposed pesticides working while in the McClures, hand, on the other urge a differ- laboratory; he further contends that he ent characterization —that of a contract through physician later learned that this claim—and accordingly ask that their 510 exposure him caused harm. Further- action be measured 15, 1985, May on Zoecon fired governs limitations statute that argues a termination he “was sounding in contract. See Tex.Civ.Prac. & pretextual job and not pеrform- based on (Vernon Rem.Code 1986). ance preventing but was for ... or with the attainment of suggested above, As we have to de health welfare [Zoecon’s] cide characterization of a 510 and plans.” life insurance action fоr purposes. limitations Other courts have question, considered this 15, 1989, how May On McClure filed origi- ever, nearly and all have construed 510 Zoecon, complaint against nal which was discharge or employ 9, 1989, amended on June to include his ment disсrimination claims. See Gavalik v. plaintiff. wife party By motion filed Co., 834, Continental Can 812 22, 1990, 843-46 February Zoecon asked for sum- (3rd Cir.), den., 979, 484 U.S. 108 mary judgment grounds 495, 98 L.Ed.2d 492 Held v. Manu McClures’action was time-barred. The dis- Hanover Leasing Corporation, and, 21, 1990, trict court concurred facturers (10th 912 Cir.1990); F.2d 1197 Young v. accordingly. entered This Martin Corp., Marietta F.Supp. 567, appeal ensued. (E.D.La.1988); Gladich v. Navistar Transp. Int’l Corp., 1331, F.Supp. (N.D.Ill.1989); Corkery Super v. X Drugs We are asked to decide a narrow if novel Corp., (M.D.Fla.1985). To parties ‍‌​​​​‌‌‌‌‌​‌‌‌​​​‌​​‌​​‌‌‌​‌‌‌‌​​​​‌‌‌‌‌​​‌‌‌‌​​‍agree that, issue. The since ERISA day we fact, follow their lead. In we provides no statute of limitations for would pressed otherwise, to do given actions, the McClures’ 510 claim is sub proscribes its terms specified ject to the Texas limitations statute that acts of “discharge” “discrimination,” governs the Texas action specific allegations in the to a 510 claim.2 Henson-El v. Rodgers, complaint. McClures’ (5th Cir.1991); 923 F.2d 51 Jensen v. Snell 600, ings, 841 F.2d Our research has uncovered but two v. Wood Combustion Engineering, cases a сontrary view of 510 ac- 339, (5th Cir.1981). 643 F.2d tions,3 The liti- neither of persuades us. In practice borrowing Teamsters, 151, 172, statutes of limita 2281, 462 U.S. 103 S.Ct. tions "closely from state law (1983). admits of a circum Seeing 76 L.Ed.2d 476 no such exception." rule, scribed Transporta Reed v. United today federal we a state statute. however, exception, That The McClures cite several cases where ERISA applies only “when a rule from elsewhere in actions have been characterized as contract clearly provides federal law analogy a closer claims. Jenkins v. Local 705 Interna statutes, than available state Teamsters, and when the fed tional Brotherhood 713 F.2d policies eral practicalities (7th at stake and Fogerty Cir. Metrоpolitan Life litigation make significantly Co., that rule a Insurance 850 F.2d fail, lawmaking.” vehicle for interstitial Without these cases involve an DelCostello v. International Brotherhood beneficiary’s Co., man v. Lukens Steel Heideman (1987) (charac Circuit sub- S.Ct. six-year state claim to a jected terizing 1981 actions with reference to ordinarily reserved for limitations Congress’s goals section); *3 analy- without actions. It did so contract Transportation Reed v. United sis, ‍‌​​​​‌‌‌‌‌​‌‌‌​​​‌​​‌​​‌‌‌​‌‌‌‌​​​​‌‌‌‌‌​​‌‌‌‌​​‍however, allocating only one sentence limitations statute the issue of which

to (1989) (characterizing under Moreover, there is noth- properly applied.4 101(a)(2)of the Labor-Management Re § ing to indicate that the characterization porting and Disclosurе Act in reliance on point contention in question was ever a purpose 101(a)(2)). behind if it Even § Heideman; parties the well have were to solely ascribe to 510 a § mistakenly a agreed § purpose, by “economic” it no means fоllows —that —albeit a claim. Al- suit most resembles contract contractual; all, that 510 claims are after though the same cannot be said of Clark recognizes the law several economic Clark, Inc., 865 F.2d 1237 Coats action, non-contrаctual among causes atten- which devotes considerable wrongful them claims of discharge and em typification problem, it ployment discrimination. finally, And Clark, of its own. In suffers from faults categorization dicta, Clark’s is by looking began the Eleventh Circuit seeing ultimately as the court forewent a purpose assayed it the which contract limitations statute in favor of a “adequate in- provision the retirement governing statute “actions to enforce stat persons spent thеir ca- come to who utory rights,” in eyes the court’s Clark, productive capacity.” reers in a narrowly “much more contemplate[d] ... ” this, at 1242. From the court conclud- F.2d [plaintiffs’ Clark, the claim].... solely was concerned about ed ERISA 865 F.2d at 1242. (rathеr rights” than “individual “economic that, therefore, personal rights”) and action is “founded on contract.” Id. reasons, foregoing For the the However, analyzing in the Eleventh of the district court is wrong- ‍‌​​​​‌‌‌‌‌​‌‌‌​​​‌​​‌​​‌‌‌​‌‌‌‌​​​​‌‌‌‌‌​​‌‌‌‌​​‍consider Circuit did not whether discharge charaсterization would AFFIRMED. instead, fitting; plain- it chose the analogue personal the tiffs’ contract over Judge, urged by injury analogue the defendant.5 dissenting.

What is the court’s decision to classi- issue, presents This case a narrow fy Congress’s pur- basis of сircuit, impression within one of first our pose passing entirety the of ERISA—as upon split: an issue which the circuits are opposed plaintiff’s employment does a particularly overly broad and thus —seems 510 of ERISA more benefits section improperly focused. Wilson closely discrimi- resemble nation claim or a of contract claim? breach (1985) (characterizing L.Ed.2d 254 personal consistently concluded that injury actions as claims because Courts have purpose underlying employee’s right to the benefits secured Good- 502(a)(1)(B) Heideman, recover due to ERISA claim is time-barred.” suit "to benefits plan, rights opinion under the to enforce his un- [him] district court is F.2d at 1267. The clarify rights PFL, der the terms of equally analysis. Heideman v. bereft of plan.” to future benefits under the terms of the Inc., (W.D.Mo.1989). 1132(a)(1)(B). perhaps 29 U.S.C. decided, While well- bearing cases have no our passing, 5. In the court did consider an characterization of the claim. McClures’ 510 characterization, rejecting ment discrimination ground “appellants’ not it on the claims do period covering "The limitations contracts is ” allege any discriminatory years, (Repl. action.... Id. at six Tenn.Code Ann. thus, 28-3-109 ruled, 1980), and as the District Court 3; right. The n. is a contractual ma- 778-79 ERISA seе also Held v. Manufactur this, dispute yet it still con- Leasing Corp., not ers Hanover jority does depriv- action in cludes that an Dameron v. Sinai Baltimore, Hosp. right of that is more ing claims of Given that the analogous to the tort to ben plan efits undеr an employment discrimination has been de discharge or fined as a right, contract action. find it ano than to a breach of suggest, majority does, malous as the two-year statute of Applying Texas’s that the deprive not to majority tоrt limitations for employee of those contractual is a plaintiff’s claim for re- concludes If to benefits is contractual filed lief in the ease before us was untime- *4 corresponding then the duty provide ly, summary judgment and it affirms those benеfits must also be contractual. I against order issued him. Because would majority’s justification sole for clas- four-year held that Texas’s statute of sifying a section 510 action as a “tort” is applica- limitations for contract actions wаs the statute uses the words “dis- plaintiff pursue ble and allowed the his charge” and Majority “discriminate.” See relief, respectfully I dissent. Opinion words, at 778. These nothing more than herrings. red An selectively decision to breach a plaintiff, McClure, alleges employee contract with X rather than em- Zoecon, Inc., employer, that his ployee mayY be described as discrimina- prevent him from employee X does not advantage welfare, of the health change the fact that the essence of the life insurance benefits to which he was cause of action remains in contract. For employee entitled as an of Zoecon. purposes selecting appropriate an aсtion limitations, statute of our focus must re- invoking section 510 of main on the and duties involved and illegal employer makes it for an to inter not on the by parties. actions taken protected rights fere with under a plan. See 29 U.S.C. provide 1140. Sincе section 510 does not I would have followed the lead of the limitations, for a statute of courts must Eleventh and classifying Circuits in the limitations for the state a section 510 action as a contract action for analogous law most to sеction 510. See purposes applying limi statute of Garcia, 261, 266-67, 105 Wilson v. tations. See Heideman v. S.Ct. (8th Cir.1990), denied, presented The issue for our consideration — —, U.S. 112 L.Ed.2d asks whether a violation of section 510 is Clark, Inc., Clark v. Coats & equivalent to a causе of action in (11th Cir.1989). Since, contract or a cause of action provides for a statute of limitations for contract I would ‍‌​​​​‌‌‌‌‌​‌‌‌​​​‌​​‌​​‌‌‌​‌‌‌‌​​​​‌‌‌‌‌​​‌‌‌‌​​‍have concluded request that McClure’s selecting An method for relief was filed. See Tex.Civ.Prac. state law most to McClure’s sec- (Vernon 1986) & Rem. Code Ann. tion 510 action is to examine the elements (statute actions). of limitations for contract of the cause of action. See circumstances, Under such I would have U.S. at 105 S.Ct. at 1943. The nature summary judg reversed the district court’s of the of non-interference ment order and remanded the case for fur under section 510 is rooted in the proceedings. ther provided by ee’s to benefits plan. majority, As noted several courts have defined this right. Majority Opinion See at

Case Details

Case Name: William L. McClure Jr. v. Zoecon, Inc., F/k/a Zoecon Industries, Inc.
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Jul 11, 1991
Citation: 936 F.2d 777
Docket Number: 90-1489
Court Abbreviation: 5th Cir.
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