FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC U IT MARCH 7, 2007 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 06- 12656

________________________ D. C . Do c k e tNo s . 0 1 - 0 0 8 1 1 - C V- VE H- NW & 0 1 - 0 0 8 1 5 C V- VE C V - 0 1 - V E H - 8 1 1 - N W : G A R Y H A M M O N D , M I C H A E L W H I T T E N , o n b eh al f o f th em sel v es an d al l o th ers si m i l arl y s itu a te d , P la in tif f s - A p p e lla n ts , v ersu s R E Y N O L D S M E T A L S C O ., TH E REY N O LD S M ETA LS CO M PA N Y PEN SI O N PLA N FO R H O U R L Y E M P L O Y E E S , RE YN OLDS M ET ALS C OM PANY SUPP LE M ENTAL UNEM PL OY M ENT B E N E F I T P L A N , D e f e n d a n ts - A p p e lle e s , RE YN OLDS M ET AL COM PANY SUPP LE M ENTAL UNEM PL OY M ENT P L A N , e t a l., D e f e n d a n ts .Honora ble J eromeFa

rris, United States Circuit Judg e for the Ninth Circuit, sitt ing by * designation. 2 _____________________________________________________ C V - 0 1 - V E H - 8 1 5 - N W : T H O M A S L . D A W S O N , o n b eh al f o f h i m sel f an d al l o th er p o t en t i al cl ass m e m b e r s , J I M M Y R E E D , P la in tif f s - A p p e lla n ts , v ersu s R E Y N O L D S M E T A L S C O M P A N Y , D e f e n d a n t- A p p e lle e .

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o r th e rn D i s tr i c to f A l ab a ma

_________________________ ( M ar c h 7, 2007) B efo re C A RN E S , P R Y O R an d F A R R IS , C i rcu i tJu d g es. * P E R C U R I A M: G ary H am m on d, M i chae l W hi tt en, T ho m as D aw son, and Ji m m y R ee d ap p e a l th e s u m m a ry ju d g m e n t a g a in s t th e irc o m p la in ts f o rb r e a c h o f

f id u c ia ry d u ty a n d b e n e f

its o w e d u n d e rth e p e n s io n p la n a n d s u p p le m e n ta l u n e m p lo y m e n t b e n e f it3

pl a n m a i nt a i ne d by the i rf orm e re m pl oy e r , R e y nol ds M e t a l C om pa ny . R e y nol ds deni ed the re qu es t ed benefi t s bec ause i tconcl ud ed thatthe form erem pl oyee s w er e note l i gi bl e unde rthe pl a i n l a ngua ge of the pl a ns . B e c aus e w e c onc l ude , unde rde novo r e vi e w , tha tthe i nt e rpr e t a t i ons of the pl a ns by R e y nol ds w e r e c orr e c ta nd s u m m a ry j u d g m e n twa s p r o p e r l y g r a n t e d o n th e b r e a c h o f f i d u c i a ry d u ty c l a i m , we a f f irm . I . B AC KG RO UN D O n M a r c h 3 1 , 1 9 9 9 , R e y n o ld s s o ld its th r e e m a n u f a c tu r in g p la n ts in M u s c le S h o a ls , A lab a m a , to W is e M e ta l C o ., I n c ., a n d W is e A llo y s , L L C . A t e a c h p la n t, R e y n o ld s m a in ta in e d ap e n s io n p la n a n d as u p p le m e n ta l u n e m p lo y m e n t b e n e f it pl an. A s e m pl oyee s of R ey no l ds, H am m on d, W hi tt en, D aw son, and R ee d w er e c o v e r e d u n d e rb o th p la n s . T o be ne f i ti t s f orm e re m pl oy e e s unde rthe s e pl a ns , R e y nol ds c l a s s i f i e d the sa l es t o W i se as pl antcl osures , w i th the ef fe ctthatapprox i m at el y 130 0 em pl oyee s we r e p l a c e d o n l a y o f

f s t a tu s . T h e c l a s s i f

i c a t i o n o f

th e s a l e a s ap l a n ts h u t d o wn a l l ow e d hour l ye m pl oy e e s t o r e c e i ve up t o e i ghta ddi t i ona l qua r t e r s of pe ns i on s e rvi c e c r e di t . A s ar e s ul t , i m m e di a t e l y f ol l ow i ng the s a l e , appr oxi m a t e l y 850 out o f 1 3 0 0 h o u r ly e m p lo y e e s w e r e e lig ib le f o rr e tir e m e n t u n d e rth e p e n s io n p la n . A s pa r tof

the s a l e s , R e y nol ds a l s o ne got i a t e d w i th W i s e f orthe e m pl oy m e nt4

of the f orm e re m pl oy e e s of

R e y nol ds . O n the da y a f t e rthe s a l e , the m a

j or i ty of the f o rm e re m p lo y e e s w e n t to w o rkf o rW is e . T h e s e e m p lo y e e s w o rk e d f o rW is e in th e s a m e p o s itio n s th e y h a d w ith R e y n o ld s b u t w ith lo w e rp a y a n d le s s f a v o r ab le benefi t s. H am m on d, W hi tt en, D aw son, and R ee d al l ac ce pt ed em pl oym entat W is e . I n 2 0 0 1 , tw o g r o u p s o f f o rm e rR e y n o ld s e m p lo y e e s f ile d s e p a r a te cl as s- ac t i on s a gai nstR ey no l ds, W i se , and the pensi on pl ans. T he form er e m p lo y e e s a s s e r te d c la im s u n d e rth e E m p lo y e e R e tir e m e n t I n c o m e S e c u r ity A c t, 29 U . S . C . § 1001 e ts e q. T he di s tr i c tc our tc ons ol i da t e d the a c t i ons , a nd the em pl oyee s f

i l ed a r evi se d com pl ai ntw i th H am m on d, W hi tt en, D aw son, and R ee d as nam ed pl ai nt i ff

s. T he re vi se d com pl ai nti ncl ud ed cl ai m s f or benefi t s und er s e c t i ons 510 a nd 502 of E R I S A a nd ac l a i m f

orbr e a c h of

f i duc i a ry duty . R e y nol ds s oughta nd obt a i ne d ade l a y of c l a s s c e r t i f

i c a t i on unt i l a f

t e rdi s pos i t i ve m ot i ons w e r e de c i de d. F o llo w in g ap e r io d o f

d is c o v e ry , th e e m p lo y e e s v o lu n ta r ily d is m is s e d th e ir cl ai m s a gai nstW i se . R ey no l ds then m ov ed for, and w as grant ed, part i al sum m ary j ud gm entagai nstthe em pl oyee s’ cl ai m s und erse ct i on 51 0. A ft erfurther di sc ov ery, the part i es fi l ed cr oss m ot i on s f or sum m ary j ud gm ent . T he di stri ct courtgrant ed the m ot i on of R ey no l ds i n p artand d i sm i ss ed the cl ai m s f or breac h5

o f f id u c ia ry d u ty . T h e d is tr ic t c o u r t d e n ie d th e r e s t o f th e m o tio n b e c au s e it de t e rm i ne d, unde rde novo r e vi e w of the i nt e rpr e t a t i ons of

the pe ns i on pl a n by R e y nol ds , tha tm a t e r i a l i s s ue s of f a c te xi s t e d. R e y nol ds f i l e d am ot i on t o a l t e ror a m e nd the j udgm e ntba s e d on ourde c i s i on i n S l om c e ns ki v. C i t i ba nk, 432 F . 3d 12 71 (11th C i r. 20 05 ). T he di stri ctcourtgrant ed the m ot i on , deci ded thatarbi tra ry a n d c ap r ic io u s r e v ie w ap p lie d , a n d g r a n te d s u m m a ry ju d g m e n t f o rR e y n o ld s . I I . STA N D A R D O F R EVI EW

“ W e rev i ew d e n o v o th e d i stri ctco u rt ’ s g ran to f su m m ary j u d g m en ti n a case i nv ol vi ng a c l ai m for benefi t s gov erned b y E R IS A . ” S l om ce nski , 43 2 F . 3d at 1277. S um m a ry j udgm e nti s appr opr i a t e w he n “ the r e i s no ge nui ne i s s ue a s t o a ny m a te r ia l f

a c t a n d . . . th e m o v in g p a r ty is e n title d to aju d g m e n t a s am a tte ro f la w .” F ed. R . C i v. P . 56 (c ). W e m ayaf fi rm the di stri ctcourton any groun d thatappears in th e r e c o r d . J a f

f k e v . D u n h a m , 3 5 2 U .S . 2 8 0 , 2 8 1 , 7 7 S . C t. 3 0 7 , 3 0 8 ( 1 9 5 7 ) .

I I I . DI S CUS S I ON T o r e s ol ve thi s appe a l w e m us ta ddr e s s tw o m a tt e r s : f i r s t , w he the rthe d is tr ic t c o u r t c o rr e c tly g r a n te d s u m m a ry ju d g m e n t r e g a r d in g th e d e n ia l o f b e n e f its by R ey no l ds un der the pensi on pl ans, and sec on d, w hether the di stri ctcourt c orr e c t l y gr a nt e d s um m a ry j udgm e nton the e m pl oy e e s ’ c l a i m f orbr e a c h of f i duc i a ry duty . W e a ddr e s s e a c h i s s ue i n turn.6 A . T h e D e n ia l o

f B e n e fits b y R e y n o ld s W a s C o r r e c t. W e h a v e u s e d s ix - s te p s to r e v ie w , u n d e rE R I S A , ad e n ia l o f b e n e f its . W illia m s v . B e llS o u th T e le c o m m s ., I n c ., 3 7 3 F .3 d 1 1 3 2 , 1 1 3 7 ( 1 1 th C ir . 2 0 0 4 ) . O nl y the fi rs tst ep i s nec es saryt o res ol ve thi s app ea l . W i th thatst ep, the court ap p li es “th e d e n o v o stan d ar d to d eter m in e w h eth erth e c laim ad m in istrato r’s be ne f i t s - de ni a l de c i s i on i s ‘ w r ong’ ( i . e . , the c our tdi s a gr e e s w i th the adm i ni stra t or’ s dec i si on ); i f i ti s not , then end the i nq ui ryand aff i rm the deci si on . ” I d . T he e m pl oy e e s c ha l l e nge the i nt e rpr e t a t i ons by R e y nol ds of f i ve s e c t i ons of the pe ns i on pl a n a nd s uppl e m e nt a l une m pl oy m e ntbe ne f i tpl a n. F i r s t , the e m pl oy e e s c ha l l e nge the i nt e rpr e t a t i on of s e c t i on V I , pa r a gr aph ( 5) , of the pe ns i on pl an, w hi ch prov i des thatan em pl oyee m ayre ce i ve a m axi m um of ei gh taddi t i on al qua r t e r s of

s e rvi c e a f

t e rl a y of f . S e c ond, the e m pl oy e e s c ha l l e nge the i nt e rpr e t a t i on of s e c t i on I I I , pa r a gr aph ( 8) , of the pe ns i on pl a n, w hi c h i s e nt i t l e d the “ R ul e of 65 R e t i r e m e ntE l i gi bi l i ty . ” T hi r d, the e m pl oy e e s c ha l l e nge the i nt e rpr e t a t i on of s e c t i on I I I , pa r a gr aphs ( 6) a nd ( 7) , w hi c h gove rn e a r l y pe ns i ons . F our th, the e m p lo y e e s c h a lle n g e th e in te rp r e ta tio n o f s u p p le m e n ta l u n e m p lo y m e n t b e n e f its in the s uppl e m e nt a l une m pl oy m e ntbe ne f i tpl a n. F i f

th, the e m pl oy e e s c ha l l e nge the i nt erpret at i on of the prov i si on for s ho rt -w ee k b enef i t s i n the supp l em ent al7

une m pl oy m e ntbe ne f

i tpl a n. E a c h of

the e m pl oy e e s ’ a r gum e nt s f a i l s unde rade n o v o s ta n d a r d o f

r e v ie w . 1. S e c t i on V I , pa r a gr aph ( 5) S e c t i on V I , pa r a gr aph ( 5) , pr ovi de s a s f ol l ow s tha ta n e m pl oy e e m a y r e c e i ve am a x im u m o f

e ig h t a d d itio n a l q u a r te r s o f s e rv ic e a f

te rla y o f f: In addi t i on t o the nu m ber of c al endar quart er s det erm i ned as ab o v e p r o v id e d , th e E m p lo y e e ’s s e rv ic e u n d e rth is S e c tio n V I s h a ll al so i ncl ud e a ny ca l endar quart er(nototherw i se i ncl ud ed) betw ee n s uc h l a s thi r i ng da t e a nd the da t e of r e t i r e m e nti n w hi c h the E m pl oyee : (a ) w as cont i nu ou sl y absentfr om w ork d ue t o l ay off, s i c kne s s ora c c i de nt. . . buti n no e ve ntw i l l the E m pl oy e e r e c e i ve c r e di ton a c c ountof

s uc h c ont i nuous abs e nc e f orm or e tha n a m a xi m um of

e i ght( 8) c ons e c ut i ve c a l e ndarqua r t e r s be gi nni ng [ w he n] the E m pl oy e e ’ s abs e nc e f r om w ork c om m e nc e s e xc l udi ng a ny ca l endar quart erdu ri ng such ei gh t(8) c on se cut i ve ca l endar quart er s o th e rw is e c r e d ite d to th e E m p lo y e e . P e n s io n P la n § V I ( 5 ) . T he pl a nts hut dow ns oc c urr e d on M a r c h 31, 1999, dur i ng the f i r s tqua r t e rof 1 9 9 9 . B e c au s e m o s t e m p lo y e e s w e r e p a id in A p r il aw e e ka f te rth e y f in is h e d th e ir w ork f orR e y nol ds , thos e e m pl oy e e s a l s o r e c e i ve d pe ns i on c r e di tf orthe s e c ond qua r t e rof

1999. S e e P e ns i on P l a n § V I ( 1) . A c c or di ng t o s e c t i on V I , pa r a gr aph (5), R ey no l ds cr edi t ed ea ch em pl oyee w i th add i t i on al ca l endar quart er s of s ervi ce for am axi m um of ei gh tconsec ut i ve qu art er s a ft erthe fi rs tqu art erof 19 99 , w hi ch w a s the l a s tqua r t e rdur i ng w hi c h a ny e m pl oy e e w orke d f orR e y nol ds . T he8

e m pl oy e e s w ho r e c e i ve d c r e di tf orthe s e c ond qua r t e rof 1999, be c aus e of

r e c e i pt o f w a g e s in th a t q u a r te r , r e c e iv e d a n a d d itio n a l s e v e n q u a r te r s . T he e m pl oy e e s a r gue tha tthe y a r e e nt i t l e d t o one a ddi t i ona l qua r t e rof se rvi ce un der s ec t i on V I. T he em pl oyee s argue thatthey s ho ul d h ave r ec ei ved c r e d it f o re ig h t q u a r te r s f

o llo w in g th e s e c o n d q u a r te ro f 1 9 9 9 . T h e p r o b le m w ith the e m pl oy e e s ’ a r gum e nti s tha ti ti s c ontr a ry t o the pl a i n l a ngua ge of the pe ns i on p la n . T he pe ns i on pl a n pr ovi de s tha ta n e m pl oy e e m a y r e c e i ve “ am a xi m um of ei gh t(8) c on se cut i ve ca l endar quart er s begi nn i ng [w hen] the E m pl oyee ’ s absence fr om w ork com m ence s, ” butthe pl an excl ud es “ any c al endar quart erdu ri ng such e i ght( 8) c ons e c ut i ve c a l e nda rqua r t e r s othe rw i s e c r e di t e d t o the E m pl oy e e . ” T he l angu age “ du ri ng such ei gh t(8) c on se cut i ve ca l endar quart er s” l i m i t s the cr edi tan e m pl oy e e c a n r e c e i ve . W he n hi s abs e nc e f r om w ork c om m e nc e d on M a r c h 31, 19 99 , an em pl oyee coul d h ave r ec ei ved a m axi m um of ei gh tconsec ut i ve qu art er s fr om then u nt i l the fi rs tqu art erof 20 01 . B ec ause the se cond qu art erof 19 99 had a l r e a dy be e n c r e di t e d t o the e m pl oy e e , unde ra nothe rpr ovi s i on of the pe ns i on pl a n, tha tqua r t e rw a s e xc l ude d f r om the m a xi m um of

e i ghtc ons e c ut i ve qua r t e r s the em pl oyee coul d h ave r ec ei ved u nd erse ct i on V I. T he pl an do es no tprov i de that ea ch em pl oyee m ustre ce i ve ei gh taddi t i on al qu art er s; the pl an prov i des thatan9

e m pl oy e e m a y r e c e i ve up t o e i ghta ddi t i ona l qua r t e r s . T he i nt e rpr e t a t i on of s e c t i on V I , p a r a g r ap h ( 5 ) , b y R e y n o ld s w a s c o rr e c t. 2 . S e c tio n I I I , p a r a g r ap h ( 8 ) - R u le o f 6 5 R e tir e m e n t E lig ib ility S e c tio n I I I , p a r a g r ap h ( 8 ) , o f th e p e n s io n p la n , w h ic h is k n o w n a s th e R u le of 65 , go verns e l i gi bi l i ty f or on e f orm of ea rl y r et i re m ent . P ar agraph (8) s peci fi es thatan em pl oyee w i th 2 0 o r m ore y ea rs of pensi on se rvi ce as of the l as tday w orke d, w hos e a ge a nd pe ns i on s e rvi c e e qua l 65 orm or e , a nd w ho ha s be e n abs e nt f r om w ork f

ortw o y e a r s be c aus e of l a y of f i s e l i gi bl e t o r e c e i ve aR ul e of 65 pe ns i on. P e ns i on P l an § I I I ( 8) . T w o of the pl a i nt i f

f s , H a m m ond a nd W hi tt e n, w e r e one qua r t e rs hor tof 20 y e a r s of

pe ns i on s e rvi c e on M a r c h 31, 1999, w he n the R e y nol ds pl a nt s w e r e s hutdow n a nd the e m pl oy e e s w e r e l a i d of f . R e y nol ds deni ed tho se tw o em pl oyee s pensi on s und erthe R ul e of 65, because nei ther had a c q u ir e d 2 0 y e a r s o f

p e n s io n s e rv ic e a s o f

th e “la s t d a y w o rk e d ,” M a r c h 3 1 , 1 9 9 9 . T he e m pl oy e e s a r gue tha tthe y s houl d ha ve r e c e i ve d c r e di tf orthe s e c ond q u a r te ro f

1 9 9 9 , b e c au s e th e y r e c e iv e d w a g e s in A p r il 1 9 9 9 . T h is a r g u m e n t f a ils . U nde rthe pl a i n m e a ni ng of the phr a s e “ l a s tda y w orke d, ” the l a s tda y the e m pl oy e e s w orke d f

orR e y nol ds w a s M a r c h 31, 1999. A s of A pr i l 1, 1999, the e m pl oy e e s pe r f

orm e d no w ork f

orR e y nol ds a nd w e r e a c tua l l y i n the e m pl oy of a n o th e rc o m p a n y . T h e in te rp r e ta tio n o f th e R u le o f

6 5 b y R e y n o ld s w a s c o rr e c t.10

3. R ul e of

70/ 80, 55/ 40, a nd 55/ 10 P e ns i ons T h e d i stri ctco u rtsu a sp o n t e d i sm i ssed th e em p l o yees’ cl ai m s fo r th ese b en efi t s fo r l ack o f st an d i n g . B ecau se n o n am ed em p l o yee w as el i g i b l e fo r th ese benefi t s w hen thei r c om pl ai nt s w er e f i l ed, the di stri ctcourtcorr ec t l y di sm i ss ed th e s e c l a i ms . Se e Fr i e n d s o f th e Ea r th , I n c . v . La i d l a w En v ’ tSe rv s . , I n c . , 5 2 8 U . S. 1 6 7 , 1 2 0 S . C t. 6 9 3 ( 2 0 0 0 ) ( s ta n d in g m u s t e x is t w h e n th e a c tio n c o m m e n c e s ) . W e a r e w i thoutj ur i s di c t i on t o de c i de w he the rthe i nt e rpr e t a t i on of the pl a n pr ovi s i ons b y R e y n o ld s w a s c o rr e c t. T he e m pl oy e e s a r gue tha t , r a the rtha n s uas pont e di s m i s s i ng the i rc l a i m s , the di s tr i c tc our ts houl d ha ve pe rm i tt e d the m a n oppor tuni ty t o a m e nd the i rc om pl a i nt t o a dd apl a i nt i f

f w i th s t a ndi ng be c aus e thi s a c t i on i s aput a t i ve c l a s s a c t i on. T he e m p lo y e e s o f

f e rn o au th o r ity to s u p p o r t th is ar g u m e n t, a n d th e e m p lo y e e s f a ile d in the fi ve ye ar s of thi s l i t i gat i on t o m ov e t o am end thei r c om pl ai ntt o add a pl ai nt i ff w ith s ta n d in g . T h e d is tr ic t c o u r t d id n o t ab u s e its d is c r e tio n w h e n it s u as p o n te d is m is s e d th e s e c la im s w ith o u t p r o v id in g th e e m p lo y e e s a n o p p o r tu n ity to a m e n d th e irc o m p la in t to a d d p la in tif f s w ith s ta n d in g . 4. S up pl em ent al U nem pl oym entB enef i t s, A rt i cl e I II R e y nol ds de ni e d the e m pl oy e e s s uppl e m e nt a l une m pl oy m e ntbe ne f i t s f or tw o rea sons. F i rs t , R ey no l ds concl ud ed thatthe em pl oyee s w er e i nel i gi bl e f or a11

be ne f i tbe c aus e the y f

a i l e d t o c om pl y w i th the r e por t i ng r e qui r e m e nt s of the pl a n, and sec on d, i f the em pl oyee s w er e e l i gi bl e, R ey no l ds ca l cul at ed the benefi tthat w o u l d b e o w ed t o b e a n eg at i v e n u m b er. B ecau se R eyn o l d s i s co rrecto n th e fi rst g r o u n d , w e n e e d n o t c o n s id e rth e s e c o n dg r o u n d . T he supp l em ent al un em pl oym entbenefi tpl an re qu i re d em pl oyee s t o sat i sf y s e ve r a l r e qui r e m e nt s be f or e the y w oul d be e l i gi bl e f orbe ne f i t s , a tl e a s tone of w hi ch al l of the em pl oyee s f ai l ed t o p er form . P ar agraph (c ) of s ec t i on 1 p rovi ded that , t o b e e l i gi bl e f

or a w ee kl y benef

i t , an em pl oyee m ust“ [b] e a vai l abl e f or w ork and m ai nt ai n an act i ve re gi stra t i on w i th the st at e e m pl oym entse rvi ce . ” S U B P l an A rt . II I s ec t i on 1(c) . T he em pl oyee s f ai l t o i dent i fyany e vi dence i n the re cord that a ny of the e m pl oy e e s m a i nt a i ne d a n a c t i ve r e gi s tr a t i on w i th the s t a t e e m pl oy m e nt s e rv ic e . T h e e m p lo y e e s in s te a d w e r e w o rk in g f o rW is e . 5 . S h o r t- w e e kb e n e f

its T he supp l em ent al un em pl oym entbenefi tpl an prov i des thatem pl oyee s r e c e i v e a“ S h o r tWe e kB e n e f i tf o ra n y we e ki n wh i c h s o m e b u tl e s s th a n th i r ty - two (32) ho urs are w orked for the C om pany” provi ded thatthe em pl oyee s have w orked a tl e a s ttw o c ont i nuous y e a r s f orthe C om pa ny . S U B P l a n A r t . V s e c t i on 1. T he benefi ti s c al cul at ed by t aki ng the di ff er ence betw ee n 3 2 and the sum of the ho urs the em pl oyee di d w ork and “ di d n otw ork for rea sons other than l ac k o f w ork. ”12

S U B P l a n A r t . V s e c t i on 2. B e c aus e the R e y nol ds pl a nt s s hutdow n on M a r c h 31, 1999, a l l of

the f orm e rR e y nol ds e m pl oy e e s w orke d l e s s tha n 32 hour s f or R e y n o ld s th a t w e e k . R e y nol ds de ni e d s hor t - w e e k be ne f i t s be c aus e i tc onc l ude d tha tthe em pl oyee s’ w ork for W i se atthe end o f the w ee k cou nt ed t ow ar d the t ot al ho urs an em pl oyee w orked i n the w ee k. R ey no l ds al so ar gu es thatshort -w ee k b enef i t s w er e n o t o w e d b e c au s e th e s h o r t- w e e kb e n e f it o n ly ap p lie s w h e n th e r e is ad e c lin e in w o rkd u e to a n e x te rn a l f a c to r , s u c h a s ap o w e rs h o r ta g e , n o t to ap la n t s h u td o w n . W e a g r e e w ith R e y n o ld s th a t s h o r t- w e e kb e n e f its a r e n o t o w e d f

o rb o th r e a s o n s . F i rs t , the prov i si on for s ho rt -w ee k b enef i t s provi des thatthe benefi tfor a pa r t i c ul a rw e e k w ill b e c a lc u la te d b y m u ltip ly in g th e E m p lo y e e ’s s ta n d a r d h o u r ly w a ge r a t e by the di f

f e r e nc e be tw e e n thi r ty - tw o ( 32) a nd the s um of the h o u r s : ( a ) H e w orke d i n the w e e k, a nd (b ) h e d i d n o tw o rkb u tfo r w h i ch h e w as p ai d b y th e C o m p an y

. . . , a nd ( c ) H e d id n o t w o rkf

o rr e a s o n s o th e rth a n la c ko f w o rk . S U B P lan A r tic le V s e c tio n 2 . B e c au s e a ll th e e m p lo y e e s w o rk e d a t le a s t f o r ty ho urs i n the w ee k for w hi ch they c l ai m short -w ee k b enef i t s, they w er e notent i t l ed t o abe ne f

i t . A ny be ne f

i tc a l c ul a t e d unde rthi s s e c t i on w oul d ha ve be e n ane ga t i ve be ne f i tbe c aus e the di f

f e r e nc e be tw e e n thi r ty - tw o a nd f or ty , the hour s the13

e m p lo y e e “w o rk e d in th e w e e k ” w o u ld b e m in u s e ig h t. T he e m pl oy e e s a r gue tha tthe hour s the y w orke d f orW i s e c a nnotbe i nc l ude d i n the s hor t - w e e k be ne f i tc a l c ul a t i on, butnothi ng i n the l a ngua ge of the pl a n s t a t e s tha tthe hour s the e m pl oy e e “ w orke d i n the w e e k” m us tbe f orthe C o m p an y. T h e em p l o yees are also n o tel i g i b l e fo r sh o rt -w eek b en efi t s b ecau se the y di d notw ork f

e w e rtha n thi r ty - tw o hour s f orthe C om pa ny due t o “ l a c k of w ork. ” S U B P l an A rt . V se ct i on 2(c) . If the R ey no l ds em pl oyee s w orked a short w e e k f orthe C om pa ny , the y di d s o be c aus e of apl a nts hut dow n a nd l a y of f , not be c aus e the i rhour s w e r e r e duc e d due t o a“ l a c k of w ork. ” I n othe rw or ds , the em pl oyee s are no tow ed these supp l em ent al un em pl oym entbenefi t s bec ause they w e r e n o t u n e m p lo y e d . B . Su mm a r

yJ u d g me n t Wa s P r o p e ro n th e B r e a c h o

f Fi du c i a r y Du t y C la i m. B e f o r e th e d is tr ic t c o u r t, th e e m p lo y e e s a r g u e d th a t R e y n o ld s b r e a c h e d its f id u c ia ry d u ty w h e n it s tru c tu r e d th e s a le to W is e to in te r f e r e w ith th e irb e n e f

its and w hen R ey no l ds m i sr epre se nt ed the em pl oyee s’ el i gi bi l i ty f or supp l em ent al u n e m p lo y m e n t b e n e f

its . T h e e m p lo y e e s ap p e a l th e s u m m a ry ju d g m e n t o n th e ir cl ai m for bre ac h o f f

i du ci ary duty onl y w i th res pectt o the al l eged m is r e p r e s e n ta tio n o f

R e y n o ld s . T h e e m p lo y e e s a r g u e th a t R e y n o ld s b r e a c h e d its f i duc i a ry duty w he n i tf

a i l e d t o gi ve i t s e m pl oy e e s a c c ur a t e i nf orm a t i on r e ga r di ng14

th e ire lig ib ility f

o rs u p p le m e n ta l u n e m p lo y m e n t b e n e f its . W e d is a g r e e . T he e m pl oy e e s c ont e nd tha tR e y nol ds m a de am a t e r i a l m i s r e pr e s e nt a t i on w hen i ti nform ed i t s e m pl oyee s thatthey w ou l d b e i nel i gi bl e f or supp l em ent al u n e m p lo y m e n t b e n e f

its u n d e rth e p la n a n d s ta te u n e m p lo y m e n t b e n e f its if th e y d id notappl y f

ora nd a c c e pts ui t abl e e m pl oy m e ntw i th W i s e . T he e m pl oy e e s a l l e ge thatthey r el i ed on the m i sr epre se nt at i on t o thei r detri m entw hen they a cc ept ed em pl oym entw i th W i se . A cl ai m for bre ac h o f f i du ci ary duty r equi re s e vi dence thatthe pl an fi du ci ary m ade m at er i al m i sr epre se nt at i on s abo utthe pl an t o the pl an p a r tic ip a n ts a n d th e p a r tic ip a n ts r e lie d o n th a t m is r e p r e s e n ta tio n to th e ird e tr im e n t. S e e J o n e s v . A m . G e n . L if e & A c c . I n s . C o ., 3 7 0 F .3 d 1 0 6 5 , 1 0 7 4 ( 1 1 th C ir . 2 0 0 4 ) . T he em pl oyee s’ ar gu m ent s f ai l for tw o rea sons. F i rs t , R ey no l ds nei ther m a d e am is r e p r e s e n ta tio n n o rc o n c e a le d m a te r ia l in f o rm a tio n w h e n it c om m uni c a t e d t o i t s e m pl oy e e s tha t , a s R e y nol ds i nt e rpr e t e d the pl a n, e m pl oy m e nt w i th W i se w as sui t abl e a l t ernat e e m pl oym entand fai l ure t o acc eptthat em pl oym entw ou l d d i squal i fyan em pl oyee fr om the re ce i ptof supp l em ent al u n e m p lo y m e n t b e n e f

its . S e c o n d , a n d m o r e im p o r ta n tly , th e e m p lo y e e s d id n o t r e ly on the al l eged m i sr epre se nt at i on of R ey no l ds t o thei r detri m ent . T he em pl oyee s a lle g e th a t th e y w e r e in

ju r e d b e c au s e , h a d th e y n o t b e lie v e d R e y n o ld s , “th e y . . . w oul d ha ve r e f

us e d e m pl oy m e ntw i th W i s e , a nd w oul d ha ve appl i e d f ora nd15

re ce i ved ful l S U B and st at e um em pl oym entbenefi t s. ” I n eff ec t , the em pl oyee s a l l e ge the y w e r e i nj ur e d be c aus e R e y nol ds i nduc e d the m t o a c c e ptga i nf ul em pl oym entatW i se , w here they e arned app roxi m at el y 92 p er ce ntof thei r f orm er s a l a r i e s , w he n the e m pl oy e e s w oul d ha ve pr e f e rr e d t o c ol l e c tune m pl oy m e nt be ne f i t s a t70 pe r c e ntof

the i rf orm e rs a l a r i e s . A l though w e a s s um e tha tthe em pl oyee s r el i ed on the i nt erpret at i on of the pl an by R ey no l ds w hen they a cc ept ed e m p lo y m e n t w ith W is e , th a t r e lia n c e w a s n o t d e tr im e n ta l. I V . CONCL US I ON T h e su m m ary j u d g m en ti n fav o r o f R eyn o l d s i s A F F I R M E D .