Lingenfelter et al v. Alcatel-Lucent Savings Plan et al
Filing
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ORDER granting 37 Joint Motion for Entry of Judgment Regarding Beneficiary of Retirement Plan Proceeds. Signed by Honorable Joseph F Anderson, Jr on 07/13/2011.(bshr, )
UNITED STATES DISTRICT COURT
IN THE DISTRICT OF SOUTH CAROLINA
COLUMBIA DIVISION
ROBERT T. LINGENFELTER AND
SHERRY L. DIODATO,
INDIVIDUALLY AND AS THE DULYAPPOINTED PERSONAL
REPRESENTATIVES OF THE ESTATE
OF ROBERT W. LINGENFELTER,
Plaintiffs and
Counter-Defendants,
v.
ALCATEL-LUCENT SAVINGS PLAN,
ALCATEL-LUCENT USA INC., AND
FIDELITY INVESTMENTS
INSTITUTIONAL SERVICES
COMPANY, INC.,
Defendants, CounterClaimants, and ThirdParty Plaintiffs in
Interpleader,
DENISE GRAHAM and JESSIE D.
LINGENFELTER.
Third-Party
Defendants in
Interpleader
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C/A No. 3:10-2590-JFA
ORDER FOR ENTRY OF
JUDGMENT
This matter is before the Court upon Joint Motion of the Plaintiffs and CounterDefendants Robert T. Lingenfelter and Sherry L. Diodato, individually and as the dulyappointed personal representatives of the Estate of Robert W. Lingenfelter, and ThirdParty Defendants, Denise Graham and Jessie D. Lingenfelter for Entry of Judgment.
FACTS
1.
Defendant/Counterclaim-Plaintiff
Sponsor”)
sponsors
and
Alcatel-Lucent
maintains
USA,
Inc.
(“Plan
Defendant/Counterclaim-Plaintiff
Alcatel-Lucent Savings Plan (“Plan”). Defendant/Counterclaim-Plaintiff
Fidelity Investments Institutional Services Company, Inc. (“Fidelity”)
provides services to the plan pursuant to contractual arrangement.
2.
Robert W. Lingenfelter (“the Decedent”) was a former employee of Plan
Sponsor and a participant in the Plan.
3.
Decedent died August 6, 2009. At the time of the Decedent’s death, the
beneficiary or beneficiaries of the Decedent’s Plan benefits became entitled
to payment from the Plan.
4.
As of June 24, 2011, the benefit due and payable under the Plan was
approximately $323,315.84 (the “Plan Balance”).
5.
Plaintiff Robert T. Lingenfelter (“Robert”), Plaintiff Sherry L. Diodato
(“Sherry”), and Third-Party Defendants Jessie D. Lingenfelter (“Jessie”)
and Denise Graham (“Denise”) each hold a potential claim to the Plan
Balance.
6.
Robert, Sherry, and Jessie claim to be beneficiaries under the Plan pursuant
to documents dated May 17, 2005 that were purportedly received by the
Plan after Decedent’s death or, alternatively, as the heirs at law. Robert,
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Sherry, and Jessie are citizens of North Carolina, New Jersey and South
Carolina, respectively.
7.
Denise holds a potential interest in the Plan Balance pursuant to a
beneficiary designation form on file with Fidelity, such form being dated
February 24, 1997 and received by Fidelity on or about March 8, 1997.
Denise is a citizen of South Carolina.
8.
The Estate is a South Carolina estate being administered in Lexington
County, South Carolina.
9.
Robert and Sherry requested administrative review from the Plan, asserting
that the 2005 documents submitted to the Plan should be treated as a valid
beneficiary designation.
10.
In May 2010, the Plan considered this request, and thereafter rendered a
determination that the 1997 designation form was the operative designation.
11.
Robert and Sherry, individually and on behalf of the Estate, thereafter
initiated this civil action by filing a summons and complaint seeking a
distribution of the Plan Balance to them.
12.
The Estate also asserts it is the beneficiary under the default provisions of
the Plan (Plan Sections 2.1(o) and 9.2(c) (iv)).
13.
The Plan, the Plan Sponsor, and Fidelity filed an answer, counterclaim, and
third-party complaint for interpleader of this action against persons holding
a potential interest in the Plan Balance.
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14.
Denise and the Decedent divorced on January 20, 2006. Plaintiffs assert
that Denise waived her right to said benefits in the divorce decree.
15.
Robert and Sherry also later asserted that the 1997 beneficiary designation
form was invalid as it was admittedly executed by Denise.
Denise
maintains that she was directed and authorized by Decedent to complete,
execute and submit the 1997 beneficiary form on Decedent’s behalf;
however, Denise hereby withdraws any actual or potential claim to the Plan
Balance based upon the 1997 beneficiary designation.
16.
Likewise, Robert, Sherry, Jessie and the Estate withdraw their contention
that the 2005 documents constituted a valid or binding designation of
beneficiary.
17.
Robert, Sherry, the Estate, Jessie and Denise (the “Interested Parties”) now
move for determination of the interpleader claim and, inter alia, for the
Court to order, adjudge and decree that the Estate is the proper beneficiary
of the Plan Benefits and order, adjudge and decree that the Plan, the Plan
Sponsor, and Fidelity be discharged from any and all further liability to the
other parties to this action, pursuant to 28 U.S.C. §§1335 & 2361.
18.
The Plan, the Plan Sponsor, and Fidelity have advised through counsel that
they take no position on the merits of the Interested Parties’ claims, and do
not oppose this motion.
PROCEDURAL HISTORY
1.
Robert and Sherry and the Estate filed their Complaint on October 5, 2010.
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2.
All parties to this action entered into settlement negotiations which resulted
in several extensions of time being granted and which ultimately resulted in
dismissal of this action under a Rubin Order on January 26, 2011.
3.
The Parties were unable to finalize the settlement, which resulted in a
March 25, 2011 motion to reopen this civil action filed by Robert, Sherry,
and the Estate, which this Court granted on that same date
4.
On March 28, 2011 the Plan, the Plan Sponsor, and Fidelity answered the
Complaint.
5.
On May 18, 2011 the Plan, the Plan Sponsor, and Fidelity filed an amended
answer and counterclaim and third-party interpleader Complaint.
DISCUSSION
Pursuant to this Motion for Determination of Interpleader, the Interested Parties
move the Court to enter judgment on the findings set forth below.
1.
The captioned action is a proper action or proceeding for interpleader under
28 U.S.C. § 1335 and for determination of the respective rights, if any, of
Robert, Sherry, Jessie, Denise, or the Estate to the Plan Balance, and this
Court has jurisdiction over the subject matter of this action and the parties
thereto.
2.
The 1997 beneficiary form should be declared invalid as it was not executed
by the Decedent.
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3.
The May 2005 documents should be declared invalid as those documents do
not comport with the requirements of the Plan for the changing or
designation of a beneficiary under the Plan.
4.
Because there is no valid beneficiary designation for the Decedent, the Plan
Balance should be designated as due payable to the Estate under the default
provisions of the Plan (Plan Sections 2.1(o) and 9.2(c)(iv)) and be
administered and disbursed to the Estate as provided under the terms of the
Plan.
5.
The Plan, the Plan Sponsor, and Fidelity should be discharged from any and
all liability to any and all parties immediately upon disbursement of the
Plan Balance in accordance with this Order, without further action from this
Court.
6.
The Plan, the Plan Sponsor, and Fidelity should be dismissed from this
action, including dismissal with prejudice.
7.
Robert, Sherry, the Estate, Jessie, and Denise should be permanently
restrained and enjoined from instituting or prosecuting any action or
proceeding against each other, the Plan, the Plan Sponsor, or Fidelity
arising out of, or related to, the Plan in any federal or state court. Likewise,
the Plan, the Plan Sponsor, and Fidelity should be permanently restrained
and enjoined from instituting or prosecuting any action or proceeding
against Robert, Sherry, the Estate, Jessie, and Denise arising out of, or
related to, the Plan in any federal or state court.
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8.
This Court should retain jurisdiction of this action for the determination of
such further matters as properly come before the Court without limitation.
9.
All parties are responsible for their own attorney’s fees, costs, and
expenses.
IT IS, THEREFORE, ORDERED, ADJUDGED, AND DECREED that:
1.
The captioned action is a proper action or proceeding for interpleader under
28 U.S.C. §1335 and for determination of the respective rights, if any, of
Robert, Sherry, Jessie, Denise, or the Estate to the Plan Balance, and this
Court has jurisdiction over the subject matter of this action and the parties
thereto.
2.
The Interested Parties’ Motion for Determination of Interpleader is granted.
3.
The 1997 beneficiary form should be declared invalid as it was not executed
by the Decedent.
4.
The May 2005 documents should be declared invalid as those documents do
not comport with the requirements of the Plan for the changing or
designation of a beneficiary under the Plan.
5.
Because there is no valid beneficiary designation for the Decedent, the Plan
terms require that the Plan Balance be distributed to the Estate as the proper
beneficiary pursuant to Plan Sections 2.1(o) and 9.2(c)(iv) and such
distribution shall be made by check made payable to “The Estate of Robert
W. Lingenfelter” mailed to Nekki Shutt, Esq., Callison Tighe & Robinson,
LLC, PO Box 1390, Columbia, SC 29202-1390.
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6.
The Plan, the Plan Sponsor, and Fidelity are discharged from any and all
liability to the Interested Parties upon disbursement of the Plan Balance to
the Estate in accordance with this Order.
7.
The Plan, the Plan Sponsor, and Fidelity should be dismissed from this
action, including dismissal with prejudice.
8.
Pursuant to 28 U.S.C. §2361, Robert, Sherry, the Estate, Jessie, and Denise
should be, and hereby are, permanently enjoined from instituting or
prosecuting any action or proceeding against each other, the Plan, the Plan
Sponsor, and Fidelity arising out of, or related to the Plan, including any
and all claims that were, or could have been, brought in the above-captioned
action.
Pursuant to 28 U.S.C. §2361, the Plan, the Plan Sponsor, and
Fidelity should be, and hereby are, permanently enjoined from instituting or
prosecuting any action or proceeding against Robert, Sherry, the Estate,
Jessie, and Denise arising out of, or related to the account of Robert W.
Lingenfelter in the Plan, including any and all claims that were, or could
have been, brought in the above-captioned action.
9.
All parties are responsible for their own attorneys’ fees, costs, and
expenses.
10.
This Court should retain jurisdiction of this action for the determination of
such further matters as properly come before the Court.
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IT IS SO ORDERED.
July 13, 2011
Columbia, South Carolina
Joseph F. Anderson, Jr.
United States District Judge
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