Harry Jung, Individually and on Behalf of All Other Persons Similarly Situated v. Fmc Corporation, a Delaware Corporation

Plaintiff-appellant Harry Jung, individually and on behalf of all persons similarly situated, brought this class action against defendant-appellee FMC Corporation (FMC) to enforce rights to severance pay under an FMC policy which constitutes an employee welfare benefit plan under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq. This action is authorized by 29 U.S.C. § 1132 (a)(1)(B) and jurisdiction is conferred by 29 U.S.C. § 1132 (e).

The district court granted summary judgment in favor of appellee FMC. We affirm.

FACTS

Plaintiffs in this class action are all former salaried employees of the Engineered Systems Division of FMC. Plaintiffs rely on language in a Policy Guide, more fully described later, which in substance provided that when “a lack of work situation occurs,” there will be an effort to place the affected employee in other FMC locations, and if that is not accomplished, the employee is entitled to severance pay. The amount is one week’s pay for each year of service, but no more than twelve weeks’ pay.

As of June 1, 1981 FMC sold the Engineered Systems Division to ESD Corporation (ESD), a corporation wholly owned by Nesco. As part of…