Thursday, May 21st, 2009...8:55 am
9th Cir: ERISA Standing and Retirement Benefits
A 9th Circuit panel has reversed its earlier ruling (reported here) and held that (1) former employees have standing to challenge the company’s elimination of retirement benefits and that (2) the trial court erred in granting summary judgment for the employer on the merits.
On the merits, the panel, on rehearing, looked at language in the benefits booklet that specifically reserved to the employer the “right to alter, amend, delete, cancel or otherwise change” the welfare plan benefits “at any time, subject to negotiation
with the Union.”
The panel held that the duty of “negotiation” could, at trial, be construed as the duty to negotiate to impasse, rather than simply the duty to discuss.
Poore v. Simpson Paper Company, ___ F.3d ___ (9th Cir. May 21, 2009)
Thomas Doyle of Bennett Hartman represents the employees. Doug Parker of Littler Mendelson represents the employer.
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