Solomon v. Bert Bell/Pete Rozelle NFL Player Retirement Plan et al

Filing 42

MEMORANDUM AND ORDER Granting in Part 37 Motion for Prejudgment Interest. Signed by Judge Marvin J. Garbis on 6/8/2016. (bas, Deputy Clerk) .

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
JESSE SOLOMON

*
Plaintiff

*

vs.

*

THE BERT BELL/PETE ROZELLE NFL
PLAYER RETIREMENT PLAN and THE
NFL PLAYER SUPPLEMENTAL
DISABILITY PLAN

CIVIL ACTION NO. MJG-14-3570

*
*
*

*

*

Defendants
*
*

*

*

*

*

*

MEMORANDUM AND ORDER RE: PREJUDGMENT INTEREST
The Court has before it Plaintiff's Motion for Prejudgment
Interest [ECF No. 37] and the materials submitted relating
thereto.

The Court finds no need for a hearing.

As set forth in the Memorandum and Order Re: Summary
Judgment [ECF No. 35], Plaintiff Jesse Solomon ("Solomon") filed
an application with the Disability Initial Claims Committee
("the Committee") for total and permanent disability benefits
("T&P benefits") that was, ultimately, denied by the Retirement
Board ("the Board") on November 19, 2009.

On December 12, 2010,

Solomon filed a second application seeking T&P benefits under
the NFL Retirement Plan ("the Plan") related to neurological and
cognitive impairments resulting from countless helmet-to-helmet
impacts sustained during his NFL career.

AR 564-68.

The

Committee was deadlocked as to whether Solomon was totally and

permanently disabled ("TPD"), and his application was deemed
denied on March 9, 2011.

AR 655.

On April 27, 2011, Solomon

appealed the denial of the Second Application to the Board.

AR

672.
On June 21, 2011, an SSA Administrative Law Judge issued a
Notice of granting Solomon disability benefits and finding him
disabled as of October 29, 2008.

At some time thereafter,

Solomon notified the Board of the SSA determination.

On August

4, 2011, the Board designated Solomon TPD, awarding benefits
effective October 1, 2010, but did not award Solomon the higher
category of T&P benefits he sought, Football Degenerative
benefits, because - it stated – he had not become TPD within 15
years of his retirement.

Under the terms of the Plan, this

finding meant Solomon was eligible for Inactive benefits only, a
lower category of T&P benefits.
On September 27, 2011, Solomon appealed to the Board
seeking reclassification of his benefits to the higher category
of T&P benefits.

The Board rejected the appeal on November 16,

2011.
On November 14, 2014, Solomon filed the instant lawsuit for
denial of benefits, pursuant to ERISA § 502(a)(1)(B), 29 U.S.C.

2

§ 1132,1 in response to the Board's November 2011 final denial of
Football Degenerative benefits.
Plaintiff seeks prejudgment interest at a rate of six
percent per annum compounded monthly from October 2010, the
effective date of the award of T&P benefits.
oppose a grant of prejudgment interest.

Defendants do not

However, Defendants

contend that Plaintiff's proposed award is unreasonably
excessive.

The Court agrees with Defendants.

As stated in Quesinberry v. Life Ins. Co. of N. Am., 987
F.2d 1017 (4th Cir. 1993):
ERISA does not specifically provide for
pre-judgment
interest,
and
absent
a
statutory mandate the award of pre-judgment
interest is discretionary with the trial
court. The district court in this case
exercised its discretion to award prejudgment interest in order to compensate Mr.
Quesinberry for the loss of the use of his
funds.
The rate of pre-judgment interest
for cases involving federal questions is a
matter left to the discretion of the
district court.
Id. at 1030-31 (internal citations omitted).
The period in question herein is a period during which the
Maryland common law rate (6% per annum) was substantially in

1

"A civil action may be brought by a participant or beneficiary
. . . to recover benefits due to him under the terms of the
plan, to enforce his rights under the terms of the plan, or to
clarify his rights to future benefits under the terms of the
plan." 29 U.S.C. § 1132(a)(1)(B).

3

excess of market rates.2

Plaintiff's suggestion that the Court

should use this rate and, in addition, compound interest
monthly, is beyond the range of reasonable.

Moreover, Plaintiff

has presented nothing to support the contention that Defendants'
having the use of Plaintiff's money would have resulted in a
gain to Defendants or loss to Plaintiff at a rate at all near
the 6% common law rate.

Yet, the rates proposed by Defendants

also do not appear appropriate.
Because the record does not refute Defendants' contention
that the Maryland rate was much higher than the true value of
the funds in question during the period at issue, the Court
shall award prejudgment interest commencing October 2010 as
Plaintiff contends but at one-half the Maryland common law rate,
3% per annum, simple interest, calculated monthly.3

Accordingly:
1.

Plaintiff's Motion for Prejudgment Interest [ECF
No. 37] is GRANTED IN PART.

2

The long-term composite rate published by the United States
Treasury for October 1, 2010 was 3.26%, and annually thereafter:
2011 – 2.58%, 2012 – 2.38%, 2013 – 3.41%, 2014 – 2.88%, 2015 –
2.61%. See https://www.treasury.gov/resource-center/data-chartcenter/interest-rates/Pages/TextView.aspx?data=longtermrate.
3
See App. A.

4

2.

Plaintiff is awarded $32,292.61 of prejudgment
interest to the end of June 2016, with postjudgment interest to commence on July 1, 2016.

SO ORDERED, this Wednesday, June 8, 2016.

/s/__________
Marvin J. Garbis
United States District Judge

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APPENDIX A
Month 

 Amount Paid 
(Inactive)  

Total Owed 
(Football Degenerative) 

Unpaid Amount 

Interest on Unpaid 
Amount (3% Simple) 

Oct‐10   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              977.47 

Nov‐10   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              963.31 

Dec‐10   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              949.14 

Jan‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              934.97 

Feb‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              920.81 

Mar‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              906.64 

Apr‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              892.47 

May‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              878.31 

Jun‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              864.14 

Jul‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              849.98 

Aug‐11   $       2,500.50  

$       8,167.00 

$            5,666.50 

 $              835.81 

Sep‐11   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              821.64 

Oct‐11   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              807.48 

Nov‐11   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              793.31 

Dec‐11   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              779.14 

Jan‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              764.98 

Feb‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              750.81 

Mar‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              736.65 

Apr‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              722.48 

May‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              708.31 

Jun‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              694.15 

Jul‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              679.98 

Aug‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              665.81 

Sep‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              651.65 

Oct‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              637.48 

Nov‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              623.32 

Dec‐12   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              609.15 

Jan‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              594.98 

Feb‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              580.82 

Mar‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              566.65 

Apr‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              552.48 

May‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              538.32 

Jun‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              524.15 

Jul‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              509.99 

Aug‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              495.82 

Sep‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              481.65 

Oct‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              467.49 

Month 

 Amount Paid 
(Inactive)  

Total Owed 
(Football Degenerative) 

Unpaid Amount 

Interest on Unpaid 
Amount (3% Simple) 

Nov‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              453.32 

Dec‐13   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              439.15 

Jan‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              424.99 

Feb‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              410.82 

Mar‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              396.66 

Apr‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              382.49 

May‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              368.32 

Jun‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              354.16 

Jul‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              339.99 

Aug‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              325.82 

Sep‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              311.66 

Oct‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              297.49 

Nov‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              283.33 

Dec‐14   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              269.16 

Jan‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              254.99 

Feb‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              240.83 

Mar‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              226.66 

Apr‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              212.49 

May‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              198.33 

Jun‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              184.16 

Jul‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              170.00 

Aug‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              155.83 

Sep‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              141.66 

Oct‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              127.50 

Nov‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $              113.33 

Dec‐15   $       3,333.50  

$       9,000.00 

$            5,666.50 

 $                99.16 

Jan‐16   $       4,166.50  

$     10,250.00 

$            6,083.50 

 $                91.25 

Feb‐16   $       4,166.50  

$     10,250.00 

$            6,083.50 

 $                76.04 

Mar‐16   $       4,166.50  

$     10,250.00 

$            6,083.50 

 $                60.84 

Apr‐16   $       4,166.50  

$     10,250.00 

$            6,083.50 

 $                45.63 

May‐16   $       4,166.50  

$     10,250.00 

$            6,083.50 

 $                30.42 

Jun‐16   $       4,166.50  

$     10,250.00 

$            6,083.50 

 $                15.21 

$ 619,337.00  

 $    393,490.50  

 $        32,292.61  

TOTALS 

$ 225,846.50 

2