Estate of Shockley v. Alyeska Pipeline Service Co.

The Estate of John Dennis Shockley (Estate) appeals from both the district court’s judgment rejecting its claim for Employee Retirement Income Security Act (ERISA) benefits under Alyeska Pipeline Service Company’s (Alyeska) retirement plan and the order imposing attorneys’ fees. The district court exercised jurisdiction under 29 U.S.C. §§ 1132 (a)(1)(B) and 1132(e)(1). We have jurisdiction of this timely appeal pursuant to 28 U.S.C. § 1291 , and we affirm.

I

Shockley was employed by Alyeska from June 27, 1980, until his death on October 20, 1990. At all times relevant to this dispute, Shockley was a participant in the Alyeska Pipeline Service Company Pension Plan for Operating Company Employees (Plan). At his death, Shockley was 50 years old, unmarried, and had five children.

After Shockley’s death, the Estate contacted Alyeska and requested survivor’s benefits under the Plan. The Plan’s retirement committee, which is responsible for final decisions on whether to deny benefits under the Plan, rejected the Estate’s claim.

The Estate subsequently brought this action pursuant to ERISA to compel payment of benefits under the Plan. On cross-motions for summary judgment, the…

concurring and dissenting:

I concur in the judgment that the Estate was not entitled to benefits but dissent as to the award of attorney’s fees.

According to the Plan, if an application for benefits is denied, the Retirement Committee has certain duties including notifying the claimant, offering the claimant a reasonable opportunity for review and putting in the notice a reference to the pertinent provisions of the Plan. The record indicates that the Shockley estate claim was first denied on June 19, 1992 by letter of Betty Metz, Assistant Annuitant Affairs Associate; she repeated the denial by letter of August 10, 1992. On May 26, 1993, L.R. Trotter, senior attorney for the company, denied the claim. These three denials were not denials by the Retirement Committee.

The Shockley estate then wrote the chairman of the Retirement Committee. By letter of October 3, 1993 he replied that the Committee had reviewed the decision to deny the claim and had decided “to uphold the earlier decision.” The letter referred to the summary plan description which was attached with the relevant portion “marked,” but there was no reference to the Plan itself.

A fiduciary is properly held to…