Opinion ID: 655521
Heading Depth: 2
Heading Rank: 3

Heading: Perdue's Appeal of Claim Under ERISA Section 1140

Text: 18 Section 1140, in applicable part, makes it unlawful for any person to discharge, ... expel, or discriminate against a participant ... for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan.... 10 Perdue claims that Bushey induced his acceptance of the FOM position and subsequently terminated his employment under the pretext of cause, so that BKC could avoid payment of severance benefits. He appeals the district court's failure to consider suspect circumstances surrounding his termination. 11 19 Section 1140 is concerned with acts taken against employees to prevent rights from ripening. The prohibitions under the statute do not extend per se to an employer who retains an employee so as to avoid payment of severance benefits under an ERISA plan. 12 See Garavuso v. Shoe Corp. of America Industries, Inc., 709 F.Supp. 1423 (S.D.Ohio 1989), aff'd 892 F.2d 79 (6th Cir.1989). Instead, a section 1140 claimant is required to demonstrate that the employer discharged the claimant with the specific intent of interfering with ... ERISA benefits. Simmons v. Willcox, 911 F.2d 1077, 1081-82 (5th Cir.1990), citing Clark v. Resistoflex Co., 854 F.2d 762, 770 (5th Cir.1988) (speculative allegations that an employer had something to gain by terminating an employee are insufficient to create a genuine issue of material fact). Perdue has failed to point to specific facts which indicate that Bushey induced Perdue's acceptance of the FOM position, or terminated Perdue's employment, with the specific intent of interfering with Perdue's attainment of rights under the Program. 20 Furthermore, at the time of Perdue's discharge, Perdue did not have rights under the Program with which the defendants could interfere. Upon acceptance of the FOM position, Perdue's right to severance benefits under the Program ceased to exist. Thereafter, any Program rights which Perdue might have would arise only if BKC were to institute either a workforce reduction or a job elimination plan involving the FOM position. Thus, Bushey and BKC did not interfere with Perdue's rights within the meaning of ERISA section 1140. Summary judgment on this claim is proper.