Richard Orozco v. United Air Lines, Inc.

United Airlines, Inc. (“United”)' filed these consolidated appeals from the district court’s entry of summary judgment in favor of Richard Orozco (“Orozco”) and from the district court’s order awarding Orozco attorney’s fees and costs. 698 F.Supp. 196 . Orozco, a former employee of United, brought this action in California Superior Court alleging breach of contract and related claims arising from United’s failure to pay additional benefits Orozco claimed were due under United’s Termination Incentive Program (“TIP”).

United removed the action to federal district court on the basis of diversity jurisdiction, 28 U.S.C. § 1332 (1982). The parties and the district court, however, treated the action as arising under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. §§ 1001-1461 (West 1985 & Supp.1989). The district court held that United’s decision to reduce its payment to Orozco under TIP was arbitrary and capricious and that Orozco had not waived his right to receive additional benefits by accepting the reduced amount offered by United. The district court then awarded Orozco attorney’s fees and costs. We reverse.

FACTS

In the fall of 1983, United instituted…