Bacon v. Stiefel Laboratories, Inc. et al
Filing
155
OPINION AND ORDER GRANTING SUMMARY JUDGMENT FOR PLAINTIFF ON COUNT VI Signed by Senior Judge James Lawrence King on 6/19/2013. (jw)
U NI
TED STATES D I
STRI T CO U RT
C
SO U TH ERN D I
STR I O F FLO R I
CT
DA
M I M ID I
A
VISIO N
CA SE N O .11 20489- V - N G
CI KI
J ES A .BACON ,
AM
Pl i if
a ntf ,
STI
EFEL LA BORATORI I C. etal,
ES, N ,
.
Dee
f ndant
s.
/
O PI I N A ND O R DER G R ANTI G
N O
N
SU M M AR Y JU DG M ENT FO R PLA I FF ON C O UN T VI
NTI
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L BACKGROUND
The a
bove syl a i i r l e t a s r e of l w s t fl agai t Ste el
- t ed cton s e at d o
e is
a uis ied
ns i f
La o aore ,l .(' ' o t ( mpa ' a is la e s p. The plitfs i t e e
b r t is nc I ' r he s
SLI
co ny' nd t e d rhi 3
)
an if n h s
ca es ha aleged t t SLI a isexecutves m ani a ed ow ne s p of e pl e s ock
s
ve l
ha
nd t
i
pul t
r hi
m oye t
i t prva el hel com pa i vi a i oft Em pl e Re i e ent l om e Sec iy
n he i t y d
ny n olton
he
oye tr m
nc
urt
Ac (û SA',29U. C.j 1 01e s q.a t Se urte a Exc ngeAc of1 34,
t$
ERI '
)
S.
1 t e , nd he c iis nd ha
t 9
1 U. C.j 78.S ctc ly,t e e pli if ha alge t tt r s c i de e n s
5 S.
pe i a l h s antfs ve le d ha he e pe tve f nda t
s
m ir es nt d t s a us of t c pa t i pr l pr i f om is eve uals e t
s epr e e he t t
he om ny o m opery oft r
t
nt
al o
Gl xosm ihK lne,whi had notbe di cl ed t pa tci nt i t Em pl
a
t i
ch
en s os o ri pa s n he
oyee St
ock
Bo sPln (S
nu a S
ESBP'ort $ a '.
' he $ n'
Pl )
Plitf J me Ba on (% a on ' i a f r r e o e of De e da SLI a
an if a s c û c ' s o me mplye
)
f n nt
nd
pa i pant i t ESBP.H e pr ous y s ved as a nam ed pl ntf i a put i cl s
rtci
n he
evi l er
ai if n
atve as a i fl J y 6,2009 on behal of f m erpari pant i t ESBP.Bacon etal v.
cton ied ul
f
or
tci s n he
.
Stee Lab atre ,I . e al,No.0921 7ICI KI (ç a sAci Compli )
i l or o is nc, t .
f
- 8 - V- NG s s ton
cl
anf',
Thi Cour s m arze t cl sale tonsofsoc m ani a i a f l s:
s
t um
i d he as lga i
t k
pulton s olow
Undert or gi t m soft Pln,t pari pa scoul nots l tade,or
he i nal er
he a he tci nt
d
el, r
r de t i s esunl st s par t f om t com pa atwhi h tm e
e em he r har
es hey e a ed r he
ny,
c i
t had t rghtt Sput't i s est Com pa Thati ,t had t rght
hey
he i o d ' he r har o
ny.
s hey
he i
t de a t tt Com pa pur has t rs r ,and t Com pa had a
o m nd ha he
ny c e hei ha es
he
ny
dut t buy t m w ihi a c ti perod oftm e..
y o
he
t n era n i
i ..
Be nni i 2007,t Stef D ef
gi ng n
he i el endant engaged i a s i ofa i t
s
n eres ctons hat
Pl ntf scl m am ountt a s hem et f ce em pl est s lt rs e
ai if ai
o c
o or
oye o el hei har s
3Se Fi t v. Stfe L s, n .e al No. - 1 7ICI KI ( i dJ y 6 2 9) Fre v Stfe
e nnery i l ab .Ic, t . 092 8 - V- NG fl ul , 00 . ï# . i l
e
,
e
,
e
fab .I . e al, l12 3- V- G ( a c 11 2 1 ) 1 07 Can , nc v S i lLab . I .
s, nc, t .No. - 085 Cl Km M r h , 0 1 ; 00 9 ada I . . te
fe s, nc,
e a.No.1- 9Cl SCOLA (ie J l 1 201l; E. v Stee Lab.Ic,e als l12 38
t l,
12238 - Vfld uy , )S. C. . i l s, n t .No. -44 f
CI ZLOCH (ie De 1 2 ll; tn ihe alv Ste l ab .Ic, tal, 1-421 Cl
Vfld c. 2, 0 )Mariolc t . . i L s, n e .No. 22 2- Vfe
ALTONAGA (ie No 27s 1 )
fld v. 20 2 .
bac t t Com pa a a bel - a ketpr c whie sm ula
k o he
ny t
ow m r
i e, l i t neousy pl nni
l a ng
t s lt Com pany ata m uch hi
o el he
gherprcet w asofer t Pl ntfs. For
i han
f ed o ai if
yea s t Company hasm ai ai d is sance t ti w ihest r ai a f iyr , he
nt ne t t
ha t s
o em n am l
c r l oper i I
ontoled
aton. ndeed,on M a c 8,2007,a ari e appear i t
rh
n tcl
ed n he
M i iH er d s a i t t Company' CEO,Cha l W .Stef ,had s d
am
al t tng hat he
s
res
i el
ai
t tt Co n ha noplns(ojgopu i. we r t n be a t a pe r
ha he mpa y d
a t
blc Ho ve , hi gs g n o p a
ot r s when,i Augus 2007,t B l ks one Gr
he wi e
n
t
he ac t
oup,an as etm ana e
s gem nt
company t s alze i t ng c
hat peci i s n aki ompani publc,i t $500 milon
es
i nvesed
li
i o t Com pa a r ve i r t n ane cl sofsoc w orh
nt he
ny nd ecei d n e ur
w as
t k
t
a oxi t y $60, pers r a as ton t Compa sboa d of
ppr mael
000
ha e nd ea
he
ny'
r
die or . one hel s anot rH e al a tcl on A ugus 1 2007 r pored t t
r ct s N t es , he r d ri e
t 0,
e t ha
t Com pany s r s i ha no pl t go publc.
he
tes ed t d
ans o
i
I f ct s etm e i N ovem ber2008,t Com pany be t di c sw ih
n a , om i n
he
gan o s us t
pot ntalbuye st pos i e s e oft Com pa Then,on N ovem be 21
e i
r he s bl al
he
ny.
r ,
2008,t Com pa s ntoutisr gul rnotc t Pl n pa tci s,r tng
he
ny e
t e a
i e o a ri pant epori
t t prce oft s ock- ascal at by an i pende a ai er w a
hat he i
he t
cul ed
nde
nt ppr s - s
$1 469pers e.Howe ,t sc
6,
har
ver hi ommuni ton al notie Pl
cai so i d an
pa tci nt t ,asofJa y 1,2009,t Pl n w a bei t r i ed and
r i pa s hat
nuar
he a
s ng e m nat
me ge it t Co n 4 ( pln. e ve , hec
r d n o he mpa y 01k) a Mor o r t ommunia i sae
c ton t t d
t t f t Er ttm e i t Com pa shit y,Pl n pa tci sw er bei
ha , or he s i n he
ny' s or
a r i pant
e ng
gi n t opton t Sdi r iy't i Compa s r by exer sng a ' '
ve he i o s ve s f ' he r
ny ha es
ci i
s '
put
opton- t ti ,an opton t s lt rs r ba t t Com pany a t
i
ha s
i o el hei ha es ck o he
t he
cur entprc Thi opton coul onl be exer s d durng Fe uar 2009.
r
i e, s i
d y
ci e
i
br y
Bac ne alv Stee Lab atre,I c,e al, 7F. pp. 1 ,1 6 ( D. a
o t . . i l or o is n . t .67 Su 2d 331 33 -37 S. Fl.
f
2 1)
0 0.
l t above- t ed ac i , t f l ng f ct ar undiput 4Pl ntf Ba
n he
syl
ton he olowi a s e
s ed. ai if con
bega w or ng f SLIon J nuar 1 1 a overt f l i t ent yea s
n
ki or
a
y 8, 988 nd
he olow ng w y r
a
ccum ul e 25.
at d 386449 s e ofSLlcom m on s ock i hi ESBP account A spa tofa
har s
t
n s
.
r
w or or r ton,Pl i ifsempl e w ast m i t on Decem be 8,2008. t
kf ce educ i
a ntf
oym nt
er na ed
r
A
t ttm e,t pr ssf a vesed pa tci ntputi hi s est t com pany cons s e
ha i
he oce or
t
ri pa
tng s har o he
itd
o f u se : 1 r q s ditiuton; 2)r c i e d srb i i t f r ofsoc
f o r tps ( ) e ue t srb i ( e e v itiuton n he o m t k
4Unl ot wie not , t e ef csaetk n fo t J ntPrti Stpulto ( #1 2)a fom t
ess her s
ed h s a t r a e r m he oi eral i ain DE 5 nd r he
i t ntbre i and e bisfl t e o.
ns a ifngs
xhi t ied her t
c rii ae ; 3)sg no a i e a r t nt soc c rii a e t SLI a ( r c i
e tfc t s ( i n, trz , nd eur he t k e tfc ts o ; nd 4) e eve
pa entfom SLI Thi pr scha
ym
r
. s oces
nged on J
anua y 1,2009,when SLIi tt ed a
r
ns iut n
da om a i putpr s't tcom bi t dit i i a putseps.
lut tc
oces ' ha
ned he s rbuton nd
t
On J nua y 20,2009, a ntf s it t o1 diti i e ec i f m , whi h
a r
Pl i if ubm ted he d s rbuton l ton or
c
wasdat D ec ber29,2008,el ctng t have a di ti i ofhi s ess t hi
ed
em
e i o
srbuton
s har ent o s
r iem entacc
etr
ounta Fi iy I t ent and che ng t box t bepai i cas f hi
t delt nves m s
cki he
o
d n h or s
f a tonals es. a ntf i uded w ih t f m ahandw rten not i ca i t the
r ci
har Pl i if ncl
t he or
it
e ndi tng ha
w ant d t exe cie hi putrght5Pl ntf alo s an e- ai t SLlempl
e o r s s
i . ai if s ent
m lo
oyee SuniBur a
i
t f l i da t tas he t confr r ptoft paper k he m aie f hi
he olow ng y ha ked r o
im ecei
he
wor
l d or s
ûe e i '6Then, Febr r 1 , 2009,SL1pur has hi s e a $16, pe s r
il cton.
'
on
ua y 3
c ed s har s t 469 r ha e.
Slls $83, 7. i cas t Pl ntf and apr is y not f $334, 53 t hi
w ent 61 88 n h o ai if
om s or
e or
471. o s
Fi iy r iem e ac
delt etr nt count Pl i ifl e aleged i t Cl sA cton Com pl ntand
. a ntf at r l
n he as
i
ai
t s ii i depostonst theputhi s r st t com pa .7
e tfed n
ii
ha
s ha e o he
ny
ButPl ntf ne r ei
ai if ver ec ved,nor sgned a r t ned t SLI a diti i ofs ock
i
nd e ur
o
, s rbuton t
c tfcat s;neiherdi Fi iy on hi beha f Pl ntf alo ne rs gned t ûa om atcerii e
t
d delt
s
l . ai i f s ve i
he tut
i
put'f m t tDef ndantSL1be us ng on Ja y 1,2009.Upon dicoverng t t
' or ha
e
gan i
nuar
s
i ha
D ef nda SL1di notpos es t f m st hew asr r t s
e nt
d
s s he or hat
equied o ubm i i or t
t n der o
5Thi not cannotbe f
s e
ound. However Pl ntf t tfed i hi December 1 2010 deposii t he
, ai if esii n s
,
ton hat
û oean t t tIpu myso k frs e. ( c 1 1 1 De a 28 DE #7 2, 1 )
G t oe ha t t c o al ' Ba on 2// 0 p. t 0,
wr
'
9- p.99 .
6The f lt oft em ai m i sal aton and sgn- f was:Scoul you pl s confr t you
ul ext he
l nus ut i
i of,
s d
ea e
im hat
r vet paper k f Stef Labor ores l ESBP.Is i t you by m ai yest da wih my
ecei he
wor or i el
at i , nc.
ent t o
l er y t
elcin. ( #8 42 p. )
e to ' DE 9- , 86 .
'
7FOrexampl, when a , SAr you 100 per s e t tyou acualy exer s yourputback i
e
sked s e
cent ur ha
t l
cied
n
J nu r 2 9, Pl n ifBa ona wee $ f ra Ic nr c l, s'( c 9 28 1 De a p. DE
a a y 00 ' aitf c ns rd,( a s a e alye . Ba on / / 0 p. t 44,
'
As
'
#7 2, 1 )
9- p.71 .
e r s hi putr ght Pl ntf Bac w ihdr f om t cl s a ton a Gl t abovexe cie s
i , ai i f on t ew r he as - c i nd ed he
syl adi on Febr r 11,2011.
t ed
on
ua y
A fe com m enc ng t s ac i Pl ntf a D ef
tr
i hi ton, ai if nd
endant s i a ed i J 2011 t
s tpul t n une
o
e ha tPl ntf sadm i sr tve r edi ,a r r by ERI , by s itng a si e
A us ai if
nit a i em es s equied
SA
ubm ti
ngl
ques i t t Gl xosm ihK lne be iscom m it Tha ques i w asEwhet Ba
ton o he a
t i
nett
tee. t
ton
ç her con
exe c s hi rght i or a
r i ed s i , n
boutJa y 2009,t puthi 25. 6448 s r ofSLIc m on
nuar
o
s 38
ha es
om
soc t the r ei a a dit i i f om t ESBP t SLl' The com m it del t
t k ha
ec ved s
srbuton r
he
o
.'
tee ega ed
isaut rt a Pl n Adm i sr t t M iheleK ila vi pr i
t ho iy s a
nit a or o c l li n, ce es dentofU . be hs f
S. nef or
Gl
axosm ihK lne. The A dm i s r i R e d bef e M s. K ilan w as lm ied t t
t i
nitatve cor
or
li
i t o he
f lo n ie '( )a me r nd s mma ii Ba on' a m i sr tv cam '( )t e
o lwi g t ms 1
.
mo a um u rzng c s d nitai e l i , 2 h
Stpu a in a Ag e me t ( )af r ofdie o t p ES s r st SLI ( )a c p
i lto nd r e n ; 3 o m
r di n o ut BP ha e o ; 4 o y
oft e diti to f r us d p i rt J n r 1 2 9;( G u omai - ut'f r t t
h srbu in o m e ro o a ua y , 00 5) i t tc p ' o ms ha
a
wee us d sa tn o J n r 1 20 ( ) Ba o s diti to r q s f r ;( ) t
r e trig n a ua y , 09; 6 c n' srbu i n e ue t o m 7 he
c e k a d p o s or no e is e t Ba o i e c ng f r hi s a e ;( ) t Cls
h c n r mis y t s u d o c n n x ha e o s h r s 8 he a s
Aci Complit ( )ta c i o Ba o sSe e r28, 0de ston; 1 Ba o s
ton
an ; 9 r ns rpt f c n' ptmbe 201 po ii ( 0) c n'
e i t Su Buradae J n r 21 200 ( 1 ta c i o Ba on' De e r 1 201
mal o ni i t d a ua y , 9; 1 ) r ns rpt f c s c mbe , 0
d p ii n;a ( 2)t Co a n i t a ve syld a to
e osto nd 1 he mpli t n he bo -t e ci n.
l a l t da e Augus 29,2011,M s.K ila det r i t tBacon ha e r s
n eter t d
t
li n e m ned ha
d xe cied
hi putrghtdes t Ct I k of a l biiy ofan ac ualputrghtf m execut by M r
s
i
pie lhe ac
vaia lt
t
i
or
ed
.
Bac ' as r r by t ESBP.M s.Kilan i ca ed t tt abs nce oft putf m
on'
, equied
he
li ndi t ha he e
he
or
wa d t i he b ( 1hi s ve a s l sa e n s at si g t hi e r ie oft pu
s û we g d y 1 s e r l wo' t tme t te tn o s xe cs
ou
n
he t
rgh ,( jhi c t mpor ne sc sma in vi e ma lo hi i e i a d c mplto of
i t 2 s on e a ou ontr to a - i f s ntnton n o ei n
a f r t e r iehi p rg t a d ( qhi a c p a eoft pr e dswiho p o d n
o m o xe c s s ut i h , n 3 s c e t nc he oc e
t ut r vi i g
n ttc to ofe r rwihi ar a o b etme. ( lin Let r DE #8 - .
o i ai n ro t n e s na l i ' Kila te ,
i
'
9 40)
Subs
eque t M s. ila sde s on,Pl ntf fl d t Se
nt o
K li n' ci i
ai i f ie he cond Am e
nded
Complit( #31 o Oc o r1 ,2 1 , d ng Cou tVlf rde lr t r d c e . I
an DE ) n t be 7 0 1 a di
n
o ca ao y e r eF n
t atr tvet d ma sfralge vi ainso ERJ ( u s1 1)a s c iis
he lenai o a ge o le d olto f SA Co nt -11 nd e urte
fa d ( un I ,heSe o Ame d Co an s e ad c a ai n, r ua t 28
r u Co t V) t c nd
nde mpl it e ks e lr to pu s nt o
U . C. 2 , ha Pli ifne rpu hi s r st SLI Pl itf sM o i n f rSu a y
S. j 201 t t antf ve t s ha e o . an if
to o mm r
J
udgm e i m or poi e a gui t tt de s on ofM s Kila asPl
nt s
e nt d, r ng ha he ci i
. li n,
an
A dm i sr t ,w asar tar and ca i ous Relefunde CountV lw oul m oot
ni ta or
bir y
prci . i
r
d
Pl ntf sot cl m s a r r t thebe compens t f hi s e a t s er e
ai i f her ai nd equie ha
a ed or s har s t he am at
ast ew ho hel s r whe t m er w ih Gl xosm ihKlne cl ed.The m er r
hos
d ha es
n he ger t a
t i
os
ge
agr mentval d each s eat$68, 29pl contnge bonus ,whih t fr
ee
ue
har
515. us
i ncy
es
c hus a
ha r ule i t alpa
ve es td n ot ymentof$71, 1 pe s e.
485.0 r har
I LEGAL STANDARD
I.
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1 t r 9 ) hol ng h t he o v ng ry t s me o wa d t i nika ,
c
p o tve e de e d monsr tng t e se e o a tibl is of f c ) û umm ay
r bai vi nc e
tai he xit nc f ra e s ue a f'. t
s
r
j dg n ma be i p o it e n wh r t pa te a e o te ba i fcs bu
u me t y
na pr prae ve
ee he ris gre n h sc a t, t
diagr a
s ee bout t f ct i e e s t t s d be dr w n f om t e f t ' Warror
he a ual nf r nce ha houl
a
r
hes ac s.'
i
T gb eTr s Co.I .v M/
ombi e anp. , nc . VNanFu g, 5 F. 1 4,1 6 ( 1h Ci.1 3 .
n 69 2d 29 29 1 t r 98 ) On
a moin fr s
to o ummay j g nt te c u tmus viw t e de e a rs ve a1
r ud me , h o r
t e he vi nc nd e ol 1
i e e s i t lght m os f abl t t nonm ovi pa t See Ande son v.Li rt
nf r nce n he i
t avor e o he
ng ry.
r
be y
Lob y, nc, 7 U. 24 2 ( 98 )
b I . 47 S. 2, 55 1 6 ,
1 1 DI
1 . SCUS ON
SI
Co ntVIs e ade lrtr j me tt tPlitf ne e pu hss rst SL1
u
e ks caao y udg n ha anif v r t i hae o
and,t ,w asa s ehol a t tm e t Com pa m e ged w ih G l
hus
har der t he i he
ny r
t axosm ihK lne.I a
t i f
s e der at t tm e of t m er r he w oul be entte t be com pens t a
har hol
he i
he
ge ,
d
il d o
a ed t
$68, 29pl contnge y bonuse pers r nott $16, her ved.Pl ntf and
515. us
i nc
s
ha e, he
469 ecei
ai if
Def
endant pr ousy s i a ed t ha t s que ton ans ed by t Pl
s evi l tpul t
o
ve hi
si
wer
he an
Adm i sr or and t aut iy was del e t M s.K ilan.Bot s des t t s cas
nitat ,
hat hort
egat d o
li
h i
o hi
e,
Plitf a Dee da t,ha fld moins f r s mmay j gme o Co t V1
anif nd fn n s ve ie
to o u r ud nt n un ,
cont ng t t t e a e no r eva is of m at r a f t The i s of 1 w f t
endi ha her r
el nt s ues
e i l ac .
s ue
a or he
Cour ' det m i ton, a bref and or l a gued by couns , i w he he t Pln
ts er na i
s i ed
aly r
el s
t r he a
Ad nitaors d c so t a Pl itf h d s d (1 t' hi s r s t SL1wa abir r
mi sr t ' e ii n h t an if a ol $ ' s ha e o
pu )
s r ta y
a caprci and,t r or excteded he l l dicr i See Jet v.Bl Cros &
nd
i ous
he ef e,
r ega s eton
t
ue
s
.
Bi Shil o a,8 0F.d 11 ,11 ( 1hCi. 98 )
ue ed fAl. 9 2 37 39 1 t r 1 9 .
The ar tar a ca i i s a r i def r ntal The Cour ' r e i not t
bir y- nd- pr c ous t nda d s e e i .
ts ol s
o
s
econd- s t pl n adm i s r t but t r vi w whet t r w a :a r tonal
gues he a
nita or
o e e
her he e s $ a i
j siiain' f rh rde iin.Grfs v la Fa l ca e Dflà'l Pln,723 F.
u tfc to ' o e cso
i l .Det mi r , lf a
f
ys f
2d
8 2,8 ( 1h Ci.1 4) Ta i i o a c ntonl t a nita i r c r b f r t e
2 25 1 t r 98 . k ng nt c ou
y he dmi sr tve e o d e o e h
pl adm i sr t , t Cour l
an
ni ta or he
t ooks f w he her t e w as a r ona e bass f pl n
or
t
her
eas bl
i or a
a m i sr t ' d c son. a e v Re inc St nd d,5 4 F.d 1 1 1 - ( 1h Ci.
d nitaors e ii Glz r . la e a ar 2 3 24 , 246 47 1 t r
20 ) The a e e of a r a o a e ba i i t sn q a no of a a bir r a d
08 .
bs nc
e s n bl ss s he ie u n
n r ta y n
c prc o sde ii n, ha n v Ja kEc e d Cor ,11 F.d 208 21 ( 1h Ci.1 97 .
a ii u cso S nno . c k r
p. 3 3
, 0 1t r 9 )
l a r ona e bas s e s s f t deci i Si m us be uphel as notbe ng ar tar or
f eas bl
i xit or he
son, it
t
d
i
bir y
ca i ous,eve i t e i e de t tw oul s
prci
n f her s vi nce ha
d uppor a contar dec s on.'Jet,890
t
r y
ii ' t
F. a 11 Buta deci i i ar t a y a ca i ousw he t e i evi nce s
2d t 40.
son s bir r nd prci
n her s de
uppori
tng
a cont a y dec s on a t t evi nce i not contadi t by t adm i sr tve r cor
rr
i i nd ha
de
s
r c ed
he
nit a i e d.
Le is nv Reinc Stnda df4 I s Co.2 F.d 1 21 1 27( 1hCi. 1.
vn o . la e a r A n . , 45 3 3 , 3 1 t r 200 )
Havi r ew e a com pl t copy oft A dm i s r i Rec d,9 t e Cour snds
ng evi d
ee
he
nitatve
or h
t
t t M s.K ilan, as Pl n Adm i sr or
ha
li
a
nitat ,had no r onabl bas s f de er i ng t
eas
e
i or t m ni hat
Pl ntf puthi s es t t Com pa The A dm i s r i Recor does nots
ai if
s har o he
ny.
nitatve
d
uppor t
t he
concl i t Pl ntf e ci hi put rght I
us on hat ai if xer sed s
i . ndee
d,an i pari a ys s of t
m tal nal i
he
9Def dant a tched a copy oft Admi sr tve Recor t t rM oton f Summar Judgment See
he
nita i
d o hei
i or
y
.
en s ta
( / - ; 9- .
DE / 1 #7 2)
79
Adm i sr tve Re d upon whi h t Pln A dm i sr or r ached her de s on cl ry
nita i
cor
c he a
ni tat e
ci i
ea l
dem onsr es t Pl i if di notput hi s es t t Com pany. D ef nda s f l t
tat hat a ntf d
s har o he
e nt ai o
i ntf a pori oft Adm i s r tve Recor s
de i y ny ton he
nit a i
d ugges i o her s t r a gum e s
tng t wi e; hei r
nt ,
à di t Pl n Adm i sr t s de son,r s e ie y upon wha Pl ntf i ended t do.
s d he a
nit a or' ci i e t ntr l
t ai i f nt
o
The ef e, t Cour fnds t t Pl Adm i sr t ' de s on w as a bir y and
r or he
t i
hat he an
nit a or s ci i
r tar
caprci See Levi on,245 F. at1327.
i ous.
ns
3d
Fis ,Pl ntf i e t e ci e hi put r ght w as ir eva t t pr s of
r t ai ips nt nt o xer s s
i
r el nt o he oces
l l r rng SLI t buy hi s ock.The ESPB pr ded pa i pant w ih a f m al
egaly equi i
o
s t
ovi
rtci s t
or
pr s f puti soc t SLI The pr es w as explcil outi i bot t Pl n
oces or tng t k o
.
oc s
i ty
lned n
h he a
bo klt( #7 1 pp.5 )a a die to me o a um fo t hu n r s ur e
o e DE 9- ,
-96 nd r ci n m r nd r m he ma e o c s
be ft ma ge ( # - pp. 1 -1 1 .A pa tcpa ts i e to wa n r a ie
ne is na r DE 79 2,
35 4 )
rii n ' nt n i n s ot e lz d
unl s t f l
es hey olowed t e s e ,and t Pl A dm i sr oracknow l dge t Pl ntf
hos t ps
he an
nitat
e d hat ai if
di not f l eihe t pr orpos - anua y 1,2009 pr s f puti hi s r t
d
olow t r he etl
r
oces es or tng s ha es o
SLI Y e ,oft t ee f t st ts s d out e ghed t Cl ofa l lt 'oft put
. t he hr ac or ha he ai
w i
he dack
vaiabiiy' he
f m , t o w ent t Pl ntf i e t exer s hi put rght1 The cour, w ihout
or w
t t
o ai ifs nt nt o
cie s
i .0
deci ng whe herPl ntf Bac w asr r t f l t o1 pr
di
t
ai if on
equied o olow he d ocedur i pl w he
es n ace
n
hi em pl entwas t m i t on Dece be 8,2008 ort l om atc- ' pr
s
oym
er na ed
m r
he i
aut
i put' ocess i
n
pl e whe he atem pt t r ve a di ti i of hi s r , fnds t t t
ac
n
t
ed o ecei
srbuton
s ha es i
ha he
1 Addii l , t Pl Admi sr or m ichar t ied Pl ntf ' i e as confr i t he
0
tonaly he an
nitat
s ac erz
ai ifs nt nt
imaton hat
exer s hi putrght Fis,she m ade t concl or fndi t tbecaus he t tfed i depostonst
cied s
i . rt
he
us y i ng ha
e
es ii n
ii o
puti hi s r t SLlhe i f di s Second,she m ir t nat e ofPl ntf sJ r 21,2009
tng s ha es o
n act d o.
s ead he ur
ai if' anua y
e- lt SuniBura as confr ng Pl ntf ûi enton and complton of a f m t exer s t put
mai o
i
imi
ai ifs çnt i
ei
or o
cie he
rght' l f ,t e- ai r
i a' n act he m l equesed confr a i when SuniBura r ved Pl ntf sel i pape k.
t
im ton
i ecei
ai if' ecton
rwor
Undert putpr sst tgover t f m Pl ntf s it el tng t r ve diti on ofs es
he
oce ha
ned he or ai if ubm ted, ec i o ecei srbuti
har
wast frtoff sepsand di notr r SL1t pur e t s esuntlt wer sgned,not rzed
he is our t
d
equie
o chas he har
i hey e i
ai
and r t ned t t Company.
e ur o he
A dm i sr i Re d ca be r d onl one w a Pl ntf di not f l eihe ESPB
nitatve cor n
ea
y
y: ai if d
olow t r
pr sf exe cii hi putrghta t r or coul notr r SL1t buy hi s es
oces or r s ng s
i
nd, he ef e,
d
equie
o
s har .
A s an ESPB pari pa ,Pl ntf w as pr bied f om of e i t s l s es a coul
tci nt ai if
ohi t r
f rng o el har nd
d
onl ca h outby e r sng hi putrght J t as he coul not of e t s lhi s r t
y s
xe ci i
s
i . us
d
f r o el s ha es o
SLIout i oft putpr s SLIc d nota pta of erofs eorm a isow n of er
sde he
oces ,
oul
cce n f
al
ke t
f
t buy out i t f m a putpr es .
o
sde he or l
oc s
Second, t onl ot r f t t t Pln Adm i s r or s d out ei
he
y he ac or hat he a
ni tat ai
w ghed
Pl ntf f l e t s
ai ips aiur o ubm i a put f m w a Shi a pt nce of t pr
t
or
s k s cce a
ht oceeds w ihout
t
pr di notûca i ofe r w ihi a r as
ovi ng i ton
r or t n e onabl tm e. Thi f t ,lke t ot t o,
e i ' s ac or i he her w
'
s s t be i l
eem o
ntuenc by M s. Kila s per pton of Pl ntf ' i ent i al o i
ed
li n'
ce i
ai i fs nt ; t s s
concl or W ih i,t Pl n A dm i s r or atempt t pr t exer s of Pl ntf s
us y. t t he a
nitat t
s o ove he
cie
ai if
p rgh wih a ne tv (.. b c us Pli ifd d no no iy SLIt a pa e twa i
ut i t t
gai e ie, e a e antf i t tf
h t ym n s n
e r r t pa n wa n i e r r . pu tn s r st SLIr quie po ii a to
ro , he yme t s ot n ro ) But tig ha e o
e r d stve c in,
noti ton ora om i son.
nac i
n
si
The ca es a e t by D ef ndant i s
s ss red
e
s n uppor of t r l
t hei egalposton on CountV l
ii
ar notper us i
e
s asve.
I Gr sv Det Fa y- r Diabii t a mi srtvec
n @ . la mi ca e s lt he d nitai ommie sd cso
y
t e' e iin
t
perai t i er tng t s
t ned o nt pre i he cope of elgi lt i t em pl
i biiy n he
oyee beneft pl n.723 F.
is a
2d
822.
The de s on de ng beneGt w a uphel beca e t adm i s r i com m it had
cii
nyi
s s
d
us he
nitatve
tee
bee gi n t excl i a hort t i er e t s
n ve he
us ve ut iy o nt pr t he cope of elgi lt f beneft and
i biiy or
is
t r w as a r tona bass f t c m it s i e pr t i t t s vi beneft coul
he e
a i l i or he om tee' nt r e aton ha ur vor
is
d
notbe r ns at once t m i t asa r ul ofr m ar i ge.1 at825.I t above- t ed
ei t ed
er na ed
es t e r a
d.
n he
syl
a i M s K ilan' decii di not i e pr t ESBP' put pr s a s
cton, . li s
s on d
nt r et he
S
oces nd ugges a
t
r i
atonalbas s f r rng SLI t pur has t s es of a ESPB pa tci ntw ho had
i or equii
o
c e he har
n
r i pa
notf l e t f m alputpr s H e dec si m e el s a ed t ,bas on Pl ntf s
olow d he or
oce s. r i on r y t t hat ed
ai if
i e t e ci e hi put r ght and hi i ton afe r cei ng pa ent f hi s es
nt nt o xer s s
i
s nac i
t r e vi
ym
or s har ,
t tweee
her r nough f t t tnd t Pl ntf ha f l ed t put pr s e t
ac s o i hat ai if d olow
he
oces , ven hough
s ock c tfca esw er neveri s a no da om a i put'f m coul be f
t
erii t
e
s ued nd
sut tc- ' or
d
ound.
Th dititc u ti J t v Bl Cr sa d Bl Shil o ab ,I .erd i
e src o r n et . ue os n ue ed fAl ama nc re n
fndi t t Bl Cr s pl adm i s r t ' dec son was a bir y and c i ous
i ng hat he ue os an
nita or s i i
r tar
aprci
bas d on (i or a i t ha notbeen pr e e t Bl Cr s.'890 F. a 11 But
e
çnf m ton hat d
es nt d o ue os '
2d t 39.
i t above- t ed acton,t Cour ' tndi i bas sol y on t A dm i sr tve
n he
s yl
i
he
ts s ng s ed el
he
nit a i
Rec d bef e t Pl Adm i sr t at t tm e s m ade her de s on.Tha r d
or
or he an
nit a or he i
he
ci i
t ecor
al pr de no r onabl bas s f t Pln A dm i s r t ' deci on t t Pl i if
one ovi s
eas
e i or he a
nit a or s
si ha a ntf
exer i ed hi putr ght Ther or t decii was ar t a y and ca i i .Se i a
cs
s
i .
ef e, he
s on
bir r
pr c ous e d. t
11
40.
Fial i Br wnv BleCr s a BleShil o ab i wa ra on bl fr
n ly,n o . u o s nd u ed fAl ama t s e s a e o
t adm i sr t t deny a cl m when m edi l r ds pr r at t tm e of t
he
ni ta or o
ai
ca ecor
epa ed
he i
he
cl i a ' hos t l adm i s on conti t w ih a s e
a m nts pia
si
l c ed t
ubs quent l ter f om t c ai a '
et r
he l m nts
doc or de aii em er ncy s pt s.898 F.2d a 1 1
t
t lng
ge
ym om
t 57 -72.The pl adm i sr or
an
ni tat ,
afe s eki addii
tr e ng
tonal i or aton fom t c ai a ' doct a r vi no r y,
nf m i r
he l m nt s
or nd ecei ng
epl
f
ound t hos t adm i s on r dst bem or r i bl ûEven a s f i er t fduci y
he pial
s i ecor o
e ela e. d
el-nt es ed i ar
i e il d t choose an a r nty m or r i e s ce of i or a i when s ce
s ntte o
ppa e l
e elabl our
nf m ton
our s
conti .'1 a 1572. But Br
l ct' d. t
own t i unlke t f t i t above- t ed ac i
oo s i he ac s n he
syl
ton.
Pl ntf nevers d he s it t ' om a i put'f m orr ved, s gned,not i d
ai i f
ai
ubm ted he '
aut tc- ' or
ecei
i
arze
a r t ned s ock ce tfca es t SLI H i de ii t tm ony i ca es t t he
nd c ur
t
rii t o
. s poston es i
ndi t ha
s it d t diti i el c i f m and t the i e
ubm te he s rbuton e ton or
ha
nt nded t exe c sehi putr ght But
o ri
s
i .
t r i no conti tng e de t tPl i ifac ua l com pl t t ESPB putpr s
he e s
l c i vi nce ha a ntf t ly
e ed he
oces .
The f s of t s cas a e m or sm ia t t e i Levi
act
hi
e r
e i l r o hos n
nson v.Relance St
i
andar
d
LfeI u an e Co.i whihalwye wa d niddia lt be ft u rhi 1w fr s
ns r c , ,n c a r s e e s biiy neis nde s a im'
e o ebe ft pln.2 F. 1 ( 1h Ci.20 ) Asd fom a ç e tfo hi
mplye ne is a 45 3d 321 1 t r 01 . i e r
û por r m s
r
l w tr i ca i t t Levi on w as a f ltm e e pl
a s m ndi tng ha
ns
ul-i
m oyee, t r w as no e dence
' he e
'
vi
be or t pl n adm i sr t t cont adi t Le ns s Se dence f om hi phys c a
f e he a
nit a or hat
r c ed vi on' svi
r
s
iin
t the was t aly diabl under t t r s of t pl ' 1 a 1
ha
ot l s ed
he e m
he an.' d. t 327.U pon t e f t ,
hes ac s
t El ve h Cicui afsm e a diti tcour fndi t t pl adm i s r t ' de al
he e nt r t fr d
sr c
t i ng hat he an
nita or s ni
ofbe isw asa bir y and ca i ous beca e i l
neft
r tar
prci
us t acked a r onabl bass. d.
eas
e i 1
The undiput f s i t s cas m a pl n t t whie Pl ntf m a ha
s ed act n hi
e
ke ai ha
l ai if y ve
i e d t put hi s r t SLI he di not s i t r st pa m or a
nt nde o
s ha es o
,
d
ubm t he equi ie pe
k nd,
t ef e,ne ac ualy di s Ther i no evi nce i t A dm i sr tve Recor t t
her or
ver t l d o.
es
de
n he
nit a i
d o he
contar A cc di y,t Pl Adm i sr t s decii w as ar t a y a ca i ous.
r y.
or ngl he an
nit a or'
s on
bir r nd prci
S e i a 1 7.Plitf i e ild t j dg n a amatro lw on Co tV1 The
e d. t 32 an if s ntte o u me t s
te f a
un .
Cour need not a es t r m ai ng Count be
t
ddr s he e ni
s cause t y a e m oot by a fndi f
he r
ed
i ng or
Pl i ifon CountV l
antf
.
l .C ONCLUS ON
V
I
A c di y, afer ca ef c der i a t Cour bei ot wie f l
cor ngl
t
r ul onsi aton nd he
t ng her s uly
a s d, i i O R DERED ,A DJUD G ED , a D ECREED t Pl i i fs M oton f
dvi e t s
nd
hat a ntf '
i or
S
umma y J me t( # )be a i he e y,GRANTED ast CountVI J me t
r udg n DE 87 , nd s r b
o
. udg n
i e e ed f Pl i if on Count V I and a1 pendi m otons a e D EN I
s nt r or a ntf
,
1
ng
i
r
ED as m oot
.
Pl ntf couns i diec ed t fl a pr
ai ips
el s r t o ie
opos or ofFi J
ed der
nal udgm ent i a danc
n ccor
e
wiht tr oft sOr e wihi fve()da ,wi teCo r rti ngj rs ito t
t he ems hi d r t n i 5 ys t h u t eani u idcin o
h
a fx f esand cos s i a i bl
fi e
t , f pplca e.
D O NE AN D O RD ER ED i Cham be s a t Ja e Lawr nce K i Feder
n
r t he m s
e
ng
al
J tce Buidi and Unied St t Courhous M i i Fl i t s 1 h da of J
usi
l ng
t
a es
t e, am , or da, hi 9t y
une,
2013.
!
.
J ES LA W RENCE K I G
N
UN I
TED STATES DI
STRI J G
CT UD
SOU THERN DI
STRI OF FLORI A
CT
D
Cc:A I Couns ofR ecor
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d
1
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