William A. Clark v. Lauren Young Tire Center Profit Sharing Trust, Alan A. Brown, and Alan Brown Tire Center, Inc.

Good Law
816 F.2d 480·1987 U.S. App. LEXIS 5643
United States Court of Appeals for the Ninth CircuitMay 4, 198786-4068California913 words

Opinion

Opinion

Sneed, J.

Appellant, having been laid off, went to work for one of his employer’s competitors. When his former employer notified him that the new job could result in forfeiture of his pension benefits, appellant sought judicial relief. The district court awarded summary judgment to the employer, and we affirm.

I.

FACTS

Appellant William Clark began work for appellee Tire Center (the Company) in June, 1975. On February 1,1985, the Company laid Clark off. According to the Company, the reason for Clark’s layoff was a downturn in business. Clark does not dispute this explanation.

Under the terms of the Company’s employer-funded profit-sharing plan, Clark had fully accrued his pension benefits after six years of employment. The plan, however, also states: “if a participant not having ten years of service ... accepts employment with a competitor of Company ... his entire account shall be forfeited.” Clark had worked nine years and eight months for the Company before he was discharged.

Some two months later, in April, 1985, Clark took a job with John Jantzi Tires, another seller of tires located on the same street as the Company, seventeen blocks away. On May 31, Alan Brown, the Company’s…

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