Thompson v. Deutsche Bank Trust Corporation et al
Filing
25
MEMORANDUM OPINION AND ORDER re: 14 MOTION to Dismiss filed by Banker's Trust Corporation, Shari Goldfarb, Deutsche Bank Trust Corporation, Seth Waugh, Deutsche Bank AG New York, Banker's Trust New York Corporation, Richard O'Connell . Defendants' motion to dismiss is GRANTED, and the Complaint is dismissed in its entirety. The Clerk of Court is directed to terminate Docket No. 14, to close the case, and to mail a copy of this Memorandum Opinion and Order to Plaintiff. (Signed by Judge Jesse M. Furman on 2/14/2014) (lmb)
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
---------------------------------------------------------------------- X
:
SANDRA D. THOMPSON,
:
:
Plaintiff,
:
:
-v:
:
DEUTSCHE BANK TRUST CORPORATION et al.,
:
:
Defendants.
:
:
---------------------------------------------------------------------- X
02/14/2014
13 Civ. 1516 (JMF)
MEMORANDUM
OPINION AND ORDER
JESSE M. FURMAN, United States District Judge:
Plaintiff Sandra D. Thompson, proceeding pro se, sues Deutsche Bank Trust Corporation
(“Deutsche Bank”), Seth Waugh, Shari Goldfarb, and Richard O’Connell (together,
“Defendants”) to recover alleged unpaid pension funds. 1 Plaintiff’s cause of action is best
characterized as arising under Section 502(a)(1)(b) of the Employee Retirement Income Security
Act of 1974 (“ERISA”), 29 U.S.C. § 1132(a), which allows a participant to bring a claim to
“recover benefits due to [her] under the terms of [her] plan.” Pursuant to Rule 12(b)(6) of the
Federal Rules of Civil Procedure, Defendants move to dismiss the complaint. (Docket No. 14).
For the reasons stated below, Defendants’ motion is GRANTED.
1
In earlier pleadings, Plaintiff had also named as a Defendant CT Corporation System.
(Compl. (Docket No. 1); Am. Compl. (Docket No. 3)). Plaintiff later confirmed that CT
Corporation System was named by “mistake,” and she omitted it from the Second Amended
Complaint. (Pl.’s Mem. Law Aff. Opp’n Mot. (“Pl.’s Mem. Law”) (Docket No. 19) ¶ 2.
1
BACKGROUND
The following facts, taken from the Second Amended Complaint (“SAC”) (Docket No.
20), are assumed to be true for purposes of this motion. See, e.g., Hogan v. Fischer, 738 F.3d
509, 512 (2d Cir. 2013). Plaintiff is a former Banker’s Trust employee. (SAC 2). In the course
of her employment, which began on February 5, 1970, she enrolled in three different employee
pension plans: the Banker’s Trust Pension Plan (“Pension Plan”), the Savings Incentive Plan/Tax
Option Program (“SIP”), and the Deductible Employee Contributions Retirement Account
(“DECRA”). (Id.). On January 19, 1984, she left her employment at Banker’s Trust after nearly
fourteen years. (Id.). Deutsche Bank acquired Banker’s Trust in 1999; in due course, the
Pension Plan was merged into Deutsche Bank Holdings Corp. Cash Account Pension Plan
(“Cash Account Pension Plan”) and SIP was merged into the Deutsche Bank Matched Savings
Plan. (Defs.’ Mem. Law Supp. Mot. To Dismiss (“Defs.’ Mem. Law”) (Docket No. 15) 1).
From the Cash Account Pension Plan, Plaintiff expected to receive, and until 2008 did
receive, monthly benefit payments of $469.01. 2 (SAC 2, 5; id., Ex. 4). As of January 1, 2008,
however, Deutsche Bank reduced the monthly payment to $17.01. (Id. 5). Plaintiff filed a claim
to adjust the monthly rate and to recover the lost payments, which Deutsche Bank denied; she
appealed the denial on December 31, 2011. (Id., Ex. 3 at 1). In a letter dated March 7, 2012,
Deutsche Bank explained that the denial of her claim was based on Section 9.3(e) of the Pension
Plan, or the Age 62 Level Income Option. (Id.). Relying on that provision, Deutsche Bank
explained that Plaintiff had “receive[d] an enhanced benefit prior to age 62” and that “[t]he
reduced monthly benefit bec[ame] effective as of the first day of the month following [her sixty2
One of Plaintiff’s exhibits reports the monthly figure as $469.58. (SAC, Ex. 2). The
discrepancy is immaterial for purposes of this motion.
2
second] birthday . . . .”. (Id.). When combined with her Social Security pension, the $17.01
would result in a total of $469.01 each month. (Id., Ex. 4; see Defs.’ Mem. Law 6).
With respect to the SIP, Plaintiff had expected to receive matched contributions of two
dollars for every one dollar she saved, up to a maximum of six percent of her yearly salary.
(SAC 2-3). When she left Bankers Trust in 1984, she received from the SIP funds attributable to
her own participating contributions — but not, Plaintiff claims, the employer’s matching
contributions for the prior two years, 1982 and 1983. Plaintiff calculates that those contributions
totaled $3,347.00. (Id. 8). Deutsche Bank advised Plaintiff that, after a “diligent review” of its
archives, it did not find any record of her SIP account. (Id., Ex. 9). Plaintiff reiterated her
concerns about the matching SIP funds with Deutsche Bank repeatedly throughout 2011 and
2012. (Id., Ex. 10). The plan administrator denied her claim, but she has not yet appealed.
(Goldfarb Decl. (Docket No. 16), Ex. G; see Defs.’ Mem. Law 8).
On March 6, 2013, Plaintiff filed the instant action. She brings three claims under
ERISA. First, she seeks the value of the reduction in her Cash Account Pension Plan from
$469.01 to $17.01 since 2008. (SAC 5). Second, she seeks the value of the SIP matched funds,
plus interest, for the final two years of her employment with Banker’s Trust. (Id. 6). Third,
alleging that Defendants’ treatment of her claims caused “stress, financial trauma, and health
issues,” including “hair loss, lack of sleep, and emotional trauma,” Plaintiff seeks to recover
emotional damages. (Id. 9). Defendants moved to dismiss those claims as pleaded in her
Amended Complaint. (See Am. Compl. (Docket No. 3)). Plaintiff subsequently filed a Second
Amended Complaint, containing nearly identical claims, as well as a response to Defendants’
motion to dismiss. (See SAC; Pl.’s Mem. Law; see also Defs.’ Reply Mem. Law Supp. Mot. To
Dismiss (“Defs.’ Reply Mem. Law”) (Docket No. 24) 1 n.1 (identifying the minimal differences
3
between the two complaints)). Thereafter, Defendants indicated that they relied upon their
previously filed motion to dismiss and filed a reply memorandum in response to Plaintiff’s
opposition. (Defs.’ Letter of June 20, 2013 (Docket No. 22); Defs.’ Reply Mem. Law).
DISCUSSION
A.
Legal Standards
A motion pursuant to Rule 12(b)(6) challenges the sufficiency of the allegations in the
complaint. See ATSI Commnc’ns, Inc. v. Shaar Fund, Ltd., 493 F.3d 87, 98 (2d Cir. 2007). To
survive the motion, the complaint must “state a claim to relief that is plausible on its face.” Bell
Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible “when the
plaintiff pleads factual content that allows the court to draw the reasonable inference that the
defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)
(citing Twombly, 550 U.S. at 556). More specifically, the plaintiff must allege sufficient facts to
show “more than a sheer possibility that a defendant has acted unlawfully.” Id. If the plaintiff
has not “nudged [his or her] claims across the line from conceivable to plausible, [the] complaint
must be dismissed.” Twombly, 550 U.S. at 570.
Plaintiff here is proceeding pro se. Accordingly, her submission must be held “to less
stringent standards than formal pleadings drafted by lawyers.” Hughes v. Rowe, 449 U.S. 5, 9
(1980) (per curiam) (internal quotation marks omitted); see also Harris v. Mills, 572 F.3d 66, 72
(2d Cir. 2009) (stating that a court must “construe a pro se complaint liberally”). Nevertheless,
pro se plaintiffs are not excused from the normal rules of pleading, and “dismissal under Rule
12(b)(6) is proper if the complaint lacks an allegation regarding an element necessary to obtain
relief.” Geldzahler v. N.Y. Med. Coll., 663 F. Supp. 2d 379, 387 (S.D.N.Y. 2009) (internal
quotation marks and alteration omitted). In other words, the “duty to liberally construe a
4
plaintiff's complaint [is not] the equivalent of a duty to re-write it.” Id. (alteration in original)
(internal quotation marks omitted).
B.
Pension Payments from the Cash Account Pension Plan
Plaintiff, in her first claim, seeks to recoup the reductions in her monthly payments from
the Cash Account Pension Plan since 2008. When a pension plan grants discretion to the plan
administrator to consider claims, a court reviews the administrator’s decisions for abuse of
discretion. See Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 115 (1989) (holding that “a
denial of benefits . . . is to be reviewed under a de novo standard unless the benefit plan gives the
administrator or fiduciary discretionary authority to determine eligibility for benefits or to
construe the terms of the plan”); Duncan v. Cigna Life Ins. Co. of N.Y., 507 F. App’x 61, 62 (2d
Cir. 2013) (summary order) (“[W]e review the administrator’s interpretation of benefits for
abuse of discretion.”). Under that deferential standard, a court “may overturn a decision to deny
benefits only if it was without reason, unsupported by substantial evidence or erroneous as a
matter of law.” Pagan v. NYNEX Pension Plan, 52 F.3d 438, 442 (2d Cir. 1995).
Here, the Cash Account Pension Plan gives discretion to the plan administrator (Goldfarb
Decl., Ex. E at 15; see also Defs.’ Mem. Law 10), 3 and there is no basis to overturn the
administrator’s decision to deny Plaintiff’s claim. Indeed, the administrator’s decision is
supported by evidence in the record and is not in error. The terms of the Cash Account Pension
Plan outline the Social Security Leveling option. Section 9.3(e) specifies that the member
receives “a reduced pension . . . so that [the] pension . . . will be approximately equal to the sum
3
Defendants submit, and rely on, the June 2003 Deutsche Bank Cash Account Pension
Plan Summary Plan Description (“SPD”) (see Goldfarb Decl., Ex. F) and excerpts from the
Deutsche Bank Cash Account Pension Plan (id., Ex. A). Although those documents postdate
Plaintiff’s employment at Bankers Trust, she does not argue that the plans in effect during her
employment materially differed from the plans in the record.
5
of his pension and his old-age Social Security benefit after such earliest age as estimated at his
Benefit Starting Date.” (Goldfarb Decl., Ex. A at 36). The March 7, 2012 letter from the plan
administrator explains that, under the terms of the Cash Account Pension Plan, “[t]he reduced
monthly benefit bec[ame] effective as of the first day of the month following [Plaintiff’s sixtysecond] birthday” and that, combined with the Social Security pension, the $17.01 would result
in a total of $469.01 each month. (SAC, Ex. 3 at 1). That analysis plainly follows the terms set
out in Section 9.3(e) of the Plan. Because the administrator’s decision is in accordance with the
terms of the Plan, the decision was not in error and certainly not an abuse of discretion.
Accordingly, Plaintiff’s first claim is dismissed.
C.
Distribution of Matching SIP Contributions
In her second claim, Plaintiff seeks the matched contributions from the SIP for her last
two years of employment at Banker’s Trust. (SAC 6-8). Defendants argue that the Court should
dismiss this claim as premature because “that claim is still in the process of being determined by
the plan administrator.” (Defs.’ Mem. Law 11). The Court agrees.
Courts have interpreted ERISA to contain an exhaustion requirement. See, e.g.,
Kirkendall v. Halliburton, Inc., 707 F.3d 173, 179 (2d Cir. 2013) (citing Paese v. Hartford Life
& Accident Ins. Co., 449 F.3d 435, 445 (2d Cir. 2006)), cert. denied, 134 S. Ct. 241. Benefits
claims under ERISA must therefore pass through the administrative review process before they
are considered in federal court. See, e.g., Kennedy v. Empire Blue Cross & Blue Shield, 989 F.2d
588, 594 (2d Cir. 1993) (noting that there is a “firmly established federal policy favoring
exhaustion of administrative remedies in ERISA cases” (internal quotation marks omitted)); cf.
Conkright v. Frommert, 559 U.S. 506, 517 (2010) (“[P]ermitting an employer to grant primary
interpretive authority over an ERISA plan to the plan administrator[] preserves the ‘careful
6
balancing’ on which ERISA is based. Deference promotes efficiency by encouraging resolution
of benefits disputes through internal administrative proceedings rather than costly litigation.”).
Although the exhaustion requirement “is not absolute,” Kirkendall, 707 F.3d at 179, to avoid
dismissal a plaintiff must “make a clear and positive showing that pursuing available
administrative remedies would be futile.” Paese, 449 F.3d at 444.
Here, Plaintiff has not exhausted her administrative remedies with respect to the SIP
claim. Deutsche Bank investigated Plaintiff’s claim and came to the determination that her SIP
Balance was $0. (Goldfarb Decl., Ex. G at 2). Deutsche Bank communicated that finding to
Plaintiff through a series of telephone calls and a September 1, 2008 letter from Christopher
Nelson, Deutsche Bank Vice President and Counsel. (Id. at 1). It stated that “[a] diligent review
of the existing records has failed to produce documentation supporting [Plaintiff’s] claim of an
account balance.” (Id.) In the course of this litigation, Deutsche Bank sent another letter, dated
May 6, 2013, to “set[] out in writing” its complete findings regarding the SIP claim. (Goldfarb
Decl., Ex. G). In that letter, the plan administrator stated the reasons for denial of Plaintiff’s
claim and explained that Plaintiff had “the right to appeal the denial of [her] claim.” (Id. at 3). It
further explained that should the Benefits Committee deny her appeal, she would then have a
right to bring a civil action under Section 502(a) of ERISA. (Id.). As of the time this motion
was briefed, however, Plaintiff had not pursued that appeal. Further, Plaintiff has made no
showing that the Court should excuse the fact that she has not yet exhausted her administrative
remedies because pursuing the appeal with Deutsche Bank would be futile. That she has “made
a concerted effort” to resolve the matter before turning to the Court and that she may sense “the
reluctance of Deutsche Bank’s Officers” (Pl.’s Mem. Law 2) does not mean that an appeal would
7
be futile or merit exempting Plaintiff from the ERISA exhaustion requirement. Accordingly,
Plaintiff’s second claim is dismissed.
D.
Emotional Damages
Finally, Plaintiff seeks emotional damages for “stress, financial trauma, and health
issues” allegedly caused by Defendants’ responses to her claims. (SAC 9). Such damages are
not available under ERISA, as the Second Circuit has interpreted “the plain language of the
statute” to not “provide for monetary relief.” Lee v. Burkhart, 991 F.2d 1004, 1011 (2d Cir.
1993). Nor are they available under the common law, as ERISA preempts any claim that “relates
to” an ERISA plan and its administration, as Plaintiff’s claim plainly does. See, e.g., Barton v.
Martha Stewart Living Omnimedia, Inc., 12 Civ. 0881 (LTS), 2012 WL 4068576, at *2,
(S.D.N.Y. Sept. 17, 2012) (“ERISA preempts any and all state law claims that ‘relate to’ an
employee benefit plan.” (quoting 29 U.S.C. § 1144)); Prince v. Am. Airlines, Inc., No. 97 Civ.
7231 (RWS), 1999 WL 796178, at *9 (S.D.N.Y Oct. 6, 1999) (“ERISA preempts any commonlaw claim for damages insofar as it relates to any employee benefit plan within its coverage.”)
Further, even if Plaintiff could pursue a common law claim for intentional or negligent infliction
of emotional distress, the claim would fail. To state either a claim, a plaintiff must plead
“extreme and outrageous conduct.” Miller v. Int’l Paper Co., 12 Civ. 7071 (LAK) (JLC), 2013
WL 3833038, at *8 (S.D.N.Y. July 24, 2013). Specifically, “[t]he conduct in question must be
so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of
decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.”
Medcalf v. Walsh, 938 F. Supp. 2d 478, 488 (S.D.N.Y. 2013) (internal quotation marks omitted).
Here, Plaintiff’s allegations that Defendants gave her the “runaround” do not even come close to
8
meeting that standard. (SAC 9). Accordingly, Plaintiff’s third claim — for emotional damages
— is dismissed as well.
CONCLUSION
Defendants’ motion to dismiss is GRANTED, and the Complaint is dismissed in its
entirety. 4 The Clerk of Court is directed to terminate Docket No. 14, to close the case, and to
mail a copy of this Memorandum Opinion and Order to Plaintiff.
SO ORDERED.
Dated: February 14, 2014
New York, New York
4
In their motion, Defendants argue that Plaintiff’s claims against Deutsche Bank and
Waugh should be dismissed on the ground that they are not proper parties. (Defs.’ Mem. Law 910). In light of the foregoing, the Court need not address that argument.
9
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?