The magistrate also concluded that the claims for legal restitution and specific performance were not cognizable under ERISA. The magistrate judge concluded that Counts III and IV of OTET's second amended complaint, the common law breach of contract claims, were preempted by ERISA. The magistrate judge recommended that OTET's motion be denied and that the district court instead grant summary judgment in favor of Defendants. Count I of OTET's second amended complaint seeks restitution from all Defendants, Count II seeks specific performance against Hillsboro Garbage to repay the benefits wrongly paid, and Counts III and IV assert common law breach of contract claims against Hillsboro Garbage.Īfter discovery, OTET moved for partial summary judgment. In 2011, after another audit, OTET removed the two men from the plan and filed this lawsuit seeking recovery of benefits paid in excess of the contributions received from Hillsboro Garbage on their behalf. OTET sent Hillsboro Garbage a letter on August 21, 2006, enclosing a copy of the 2006 audit, stating that the audit uncovered $70,000 in unauthorized contributions, and advising Hillsboro Garbage that it had six months to make a written refund request.įollowing the 2006 audit, OTET continued to accept contributions from Hillsboro on behalf of Henderson and Jackson and to pay medical claims for their benefit. In 2006, an audit revealed that Hillsboro Garbage had made unauthorized contributions on behalf of Henderson and Jackson. (“RonJons”), which had common ownership with Hillsboro Garbage. In fact, Henderson and Jackson were not employed by Hillsboro Garbage, but by a separate company, RonJons Unlimited, Inc.

Starting in 2003, OTET received contributions for health care benefits coverage for Henderson and Jackson, purportedly as employees of Hillsboro Garbage. The NBU Agreements specify that only individuals with a bona fide employment relationship with Hillsboro Garbage are eligible to participate in OTET benefit plans. The Trust Agreement also authorized OTET's Trustees to enter into special agreements with Hillsboro Garbage under which OTET would provide health and welfare benefits for the company's non-bargaining unit employees (the “NBU Agreements”). Under the terms of the Subscription Agreements, Hillsboro Garbage and the Union agreed to be bound by the provisions of the Trust Agreement governing OTET, chose the Health & Welfare Plan F/W (“Plan”) for eligible employees and their dependents, and agreed that Hillsboro Garbage would be subject to periodic audits to detect unauthorized contributions. 1 The CBA was renewed in April 2007 through February 28, 2012. 305 (“Union”) entered into a collective bargaining agreement (“CBA”) which made Hillsboro Garbage a subscriber to OTET, effective March 1, 2003, through February 28, 2007. In September 2003, Hillsboro Garbage and Teamsters Local Union No. 37 of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, and local union affiliates. OTET provides health and welfare benefits to the employees whose employers have entered into collective bargaining agreements with Joint Council No. OTET is an Employer Health and Benefit Plan governed by ERISA. Whether the district court abused its discretion in refusing to allow OTET to amend its complaint to allege fraud. Whether OTET's claims for restitution and specific performance are permitted.ģ. Whether OTET, an Employer Health and Benefit Plan, governed by ERISA, can recover damages, on a breach of contract claim, against a business which received health care benefits for two ineligible employees.Ģ. (“ERISA”) and (2) OTET's restitution and specific performance claims because the court concluded that those claims were not cognizable under ERISA as they sought legal-not equitable-relief.ġ. The district court, adopting the findings of a magistrate judge, granted summary judgment in favor of Defendants on (1) OTET's breach of contract claims because the court found those claims to be preempted by the Employee Retirement Income Security Act of 1974, 29 U.S.C. (“Hillsboro Garbage”), Robert Henderson (“Henderson”), and the Estate of Darrol Jackson (“Jackson”).

Oregon Teamster Employers Trust (“OTET”) appeals the grant of summary judgment in favor of Defendants Hillsboro Garbage Disposal, Inc. Harnden, Barran Liebman LLP, Portland, OR, for Defendants–Appellants. Larkin, Bennett, Hartman, Morris & Kaplan, LLP, Portland, OR, for Plaintiff–Appellant. Decided: September 08, 2015īefore WILLIAM A. Henderson Estate of Darroll Jackson, Defendants–Appellees.

OREGON TEAMSTER EMPLOYERS TRUST, Plaintiff–Appellant, v. United States Court of Appeals,Ninth Circuit.

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