Patel

Patel v. Sugen, Inc.

Caution
354 F. Supp. 2d 1098·2005 WL 287535·34 Employee Benefits Cas. (BNA) 2723·2005 U.S. Dist. LEXIS 5036
United States District Court, Northern District of CaliforniaJanuary 4, 2005C-04-2884 VRWCalifornia6,803 words

Opinion

Opinion

Walker, J.

ORDER

This case is brought by two former employees (“plaintiffs”) of defendant Sugen, Inc (“Sugen”), on behalf of a putative class of former Sugen employees. Sugen has ceased operations.

Plaintiffs’ claims arise out of a dispute as to the correct amount of certain payments made at the end of their employment. Two payments are in dispute: One was paid as severance (the “severance payment”); the other, which the court will refer to as the “incentive payment,” was a pro-rated share of each employee’s bonus for the months worked in 2003 before termination.

Plaintiffs filed suit in California state court seeking three elements of claimed damages: (1) the difference between their actual severance payments and the (larger) severance payments to which they claim to be entitled; (2) the difference between their actual incentive payments and the (larger) incentive payments to which they claim to be entitled; and (3) recovery for fraud and misrepresentation claims related to these disputes. Compl. (Doc. # 1 Ex. A). Defendants, contending that plaintiffs’ claims of entitlement trace only to plans governed by the Employee Retirement Income Security Act of 1974 (ERISA), removed the case to…

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