Title: Fox v. Metromail of Delaware, Inc.

State: nebraska

Issuer: Nebraska Supreme Court

Document:

544 N.W.2d 833 (1996) 249 Neb. 610 Sandra K. FOX, Appellant, v. METROMAIL OF DELAWARE, INC., a Delaware corporation, and R.R. Donnelley & Sons Company, Appellees. No. S-94-379. Supreme Court of Nebraska. March 15, 1996. *835 Darrell K. Stock, of Snyder & Stock, Lincoln, for appellant. Richard L. Spangler, Jr., of Woods & Aitken Law Firm, Lincoln, for appellees. WHITE, C.J., and CAPORALE, FAHRNBRUCH, LANPHIER, WRIGHT, CONNOLLY, and GERRARD, JJ. LANPHIER, Justice. Sandra K. Fox, plaintiff-appellant, and her then fiancé, Bret E. Fox, allegedly executed change of beneficiary forms at their place of employment, Metromail of Delaware, Inc., naming each other as beneficiary on certain life insurance policies. After their marriage, Bret Fox died and appellant discovered that her spouse's life insurance was still payable to his father. This action was brought in Lancaster County District Court by appellant, claiming that Metromail breached its fiduciary duty under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1001 et seq. (1994) (specifically, § 1132(a)(1)(B)), by not properly processing the change of beneficiary forms. The insurance was paid into her husband's estate. Appellant paid a portion of the benefits to her father-in-law in return for his disclaiming any interest in the benefits. Appellant claims Metromail's breach of duty under ERISA resulted in her not receiving all of the benefits due her as a result of her husband's death. A demurrer was sustained in the district court on appellant's seventh amended petition. The court dismissed, finding that it did not have subject matter jurisdiction of the action under ERISA. We affirm. Appellant stated in her seventh amended petition: B) R.R. Donnelley & Sons Company, through the defendant Metromail of Delaware, Inc. exercised discretionary authority or discretionary control respecting the management of the "Choices" plan, particularly *836 by reason of its employees receiving, handling and processing all paper work regarding changes of benefits and beneficiaries with the employees of Metromail of Delaware, Inc. Metromail and Donnelley demurred. The court sustained the demurrer and dismissed the action. Appellant assigns as error: In an appellate court's review of a ruling on a general demurrer, the court is required to accept as true all the facts which are well pled and the proper and reasonable inferences of law and fact which may be drawn therefrom, but not the conclusions of the pleader. Proctor v. Minnesota Mut. Fire & Cas., 248 Neb. 289, 534 N.W.2d 326 (1995); Carlson v. Metz, 248 Neb. 139, 532 N.W.2d 631 (1995); Barks v. Cosgriff Co., 247 Neb. 660, 529 N.W.2d 749 (1995). In reviewing a ruling on a general demurrer, an appellate court cannot assume the existence of a fact not alleged, make factual findings to aid the pleading, or consider evidence which might be adduced at trial. Proctor, supra; Merrick v. Thomas, 246 Neb. 658, 522 N.W.2d 402 (1994). If from the facts stated in the petition it appears that the plaintiff is entitled to any relief, a general demurrer will not lie. Wheeler v. Nebraska State Bar Assn., 244 Neb. 786, 508 N.W.2d 917 (1993); St. Paul Fire & Marine Ins. Co. v. Touche Ross & Co., 244 Neb. 408, 507 N.W.2d 275 (1993). *838 An order sustaining a demurrer will be affirmed if any one of the grounds on which it was asserted is well taken. Gallion v. Woytassek, 244 Neb. 15, 504 N.W.2d 76 (1993). The sustaining of a general demurrer, not followed by a judgment of dismissal terminating the litigation, does not constitute a reviewable final order. Barks, supra. To the extent relevant to this review, ERISA supersedes "any and all State laws insofar as they may now or hereafter relate to any employee benefit plan...." 29 U.S.C. § 1144(a). ERISA has therefore preempted state law with respect to actions brought to clarify rights to benefits or to enforce rights arising under a plan coming within the purview of ERISA. Anderson v. HMO Nebraska, Inc., 244 Neb. 237, 505 N.W.2d 700 (1993). Section 1132(e)(1) of ERISA states in relevant part: Section 1132(a)(1)(B), cited above in the jurisdiction section, states: This court has previously held that a participant in, or beneficiary of, an ERISA-regulated plan may seek to enforce her or his benefits and rights thereunder by instituting a civil action in either the state or federal courts. § 1132(a)(1)(B) and (e)(1). See Anderson, supra. We have also stated that "`[c]oncurrent jurisdiction is vested in the state courts only with respect to a civil action commenced by a participant or beneficiary seeking to recover or clarify rights to benefits "under the terms of the plan," or to enforce rights "under the terms of the plan."'" (Emphasis in original.) Anderson, 244 Neb. at 241-42, 505 N.W.2d at 705 (quoting Duffy v. Brannen, 148 Vt. 75, 529 A.2d 643 (1987)). The present facts do not present a case of concurrent jurisdiction. In this case, after appellant's father-in-law, the named beneficiary, disclaimed his interest in the life insurance benefits, the benefits were paid to the estate of appellant's deceased husband. Appellant argues that a portion of the proceeds was eventually paid to the wrong party in settlement. The fact remains, however, that the plan did pay the benefits. Appellant accepted those benefits. Therefore, § 1132(a)(1)(B), providing for concurrent jurisdiction for the recovery of benefits or to enforce rights, does not apply. In such actions, state courts have no concurrent jurisdiction. The federal courts have exclusive jurisdiction. The district court appropriately sustained the demurrer. When a demurrer to a petition is sustained, a court must grant leave to amend the petition unless it is clear that no reasonable possibility exists that amendment will correct the defect. Vanice v. Oehm, 247 Neb. 298, 526 N.W.2d 648 (1995); Pendleton v. Pendleton, 247 Neb. 66, 525 N.W.2d 22 (1994); Dalition v. Langemeier, 246 Neb. 993, 524 N.W.2d 336 (1994). It is clear in this case that no reasonable possibility exists that an eighth amended petition would correct the lack of subject matter jurisdiction. The court allowed appellant to amend her petition seven times. The district court noted that appellant, in her seventh amended petition, cited the correct jurisdiction section of ERISA *839 under which she alleged damages, but she did not assert any facts which conformed to the jurisdiction requirement of that section. We have held that such action cannot cure lack of subject matter jurisdiction. Specifically, we have held that parties cannot confer subject matter jurisdiction upon a judicial tribunal by either acquiescence or consent, nor may subject matter jurisdiction be created by waiver, estoppel, consent, or conduct of the parties. In re Interest of J.T.B. and H.J.T., 245 Neb. 624, 514 N.W.2d 635 (1994); Scherbak v. Kissler, 245 Neb. 10, 510 N.W.2d 318 (1994); Rohde v. Farmers Alliance Mut. Ins. Co., 244 Neb. 863, 509 N.W.2d 618 (1994). The district court stated in its March 22, 1994, order that "the `facts' alleged in the petition do not set forth causes of action under [29 U.S.C. § 1132](a)(1)(B). Therefore, jurisdiction of these claims is vested exclusively in the United States District Court. Since this court does not have jurisdiction over the claims, the action must be dismissed." For the foregoing reasons, we affirm the district court's decision that it lacked ERISA subject matter jurisdiction. Finding no merit in any of appellant's assignments of error, we affirm. AFFIRMED.