Opinion ID: 755430
Heading Depth: 2
Heading Rank: 4

Heading: Fairchild's ERISA Claim

Text: 45 Fairchild argues that Forma and Life Sciences wrongfully withheld certain health benefits from him in violation of ERISA. Forma alleges and Fairchild admits that he never applied for such benefits. 46 It is axiomatic that a plan participant must apply for the benefits to which he claims entitlement prior to suing for the wrongful denial of those benefits. However, we have dispensed with this requirement for participant's alleging a cause of action under ERISA's § 510, 29 U.S.C. § 1140. In Tolle v. Carroll Touch, Inc., 977 F.2d 1129, 1139-40 (7th Cir.1992), we recognized that under certain circumstances an employee may have a § 510 claim for interference with collection of benefits even though this employee never made a formal or informal request for benefits and even though the employer never denied such a request. Id. at 1139 (citing 29 U.S.C. § 1140). The circumstances we outlined as our hypothetical were as follows: the employer knows the employee has a medical condition which will eventually require significant treatment. Before the employee has an opportunity to request benefits for the treatment of this condition, the employer terminates the employee for the purpose of avoiding payment of the future medical expenses under an ERISA employee benefit plan. See id. In these hypothetical circumstances, we found that an employee could maintain an action notwithstanding the fact the employee never requested the benefit coverage. 47 Fairchild alleges that his situation parallels our hypothetical example and therefore he need not show that he had applied for the benefits he now seeks. This may be true if Fairchild's complaint alleges a § 510 claim. Fairchild's complaint states only that Forma and Life Sciences refused to provided him the benefits to which he was entitled. Assuming his complaint states only a cause of action for the wrongful denial of benefits, summary judgment was properly granted because Fairchild did not request the benefits prior to filing suit. 48 Even if we read Fairchild complaint to assert a § 510 claim, summary judgment was still properly granted. To avoid summary judgment, Fairchild must have some facts to suggest he has a colorable claim. Section 510 requires that the employee show that the reason he was terminated was to interfere with his rights under ERISA. See Lindemann v. Mobil Oil Corp., 141 F.3d 290 (7th Cir.1998). That is, he must show that Forma terminated him to avoid paying benefits to which he would have been entitled had he continued working. Fairchild may meet this burden either by presenting direct evidence supporting this conclusion, or he can utilize the burden-shifting McDonnell Douglas framework. See id., 141 F.3d 290; Grottkau v. Sky Climber, Inc., 79 F.3d 70, 73 (7th Cir.1996). 49 Fairchild does not assert that he has direct evidence that Forma terminated him to interfere with his rights under ERISA. Neither does Fairchild explicitly rely on the McDonnell Douglas framework. Instead, Fairchild argues that he need not have requested the benefits to which he was entitled to maintain an ERISA claim. This argument does not assist our resolution of the § 510 claim. Although Fairchild focuses on whether the law required him to apply for the benefits prior to making an ERISA claim, we are not bound by his arguments and we may grant summary judgment for any reason supported by the record. See McClendon v. Indiana Sugars, Inc., 108 F.3d 789, 796 (7th Cir.1997); Alexander v. Rush N. Shore Med. Ctr., 101 F.3d 487, 490 (7th Cir.1996), cert. denied, --- U.S. ----, 118 S.Ct. 54, 139 L.Ed.2d 19 (1997). 50 Under either the direct or burden-shifting standard, Fairchild cannot make the requisite showing to defeat summary judgment. As evidence for his ERISA claim, Fairchild presents Rosenblum's response to Fad when Fad inquired about Fairchild going on disability. While certainly a case of unfortunate timing and reprehensible language, we do not believe that Rosenblum's response of Fuck him is sufficient to establish that Forma terminated Fairchild to avoid paying disability. First, it is far from clear what Rosenblum meant by the comment. He could have simply been expressing anger at Fairchild for consistently being a poor performer. Even if we were to believe that Rosenblum meant forget-Fairchild-going-on-disability-because-we'll-fire-him-before-that-ever-ha ppens, which we consider a stretch at best, Fairchild must still contend with the fact that it was Bergen, not Rosenblum or Fad, who fired him. Fairchild presented no evidence that Bergen was aware of Rosenblum's comment. The difficulty in ascertaining Rosenblum's meaning coupled with the fact that the decision maker was not present when the comment was made and the lack of evidence to suggest that he was aware of the comment leads us to conclude that Fairchild cannot establish by this evidence that he was terminated in an attempt to interfere with his rights under ERISA. 51 Even if we utilize the burden-shifting analysis, Fairchild's argument fails. Because Forma has proffered a legitimate non-discriminatory reason for Fairchild's termination, the onus is upon Fairchild to establish that this reason is pretextual. For the same reasons stated above, Rosenblum's argument does not give us reason to believe that Forma's reason for firing Fairchild was pretextual. 52 Fairchild also asserts that once Rosenblum learned of his disability, Rosenblum began pressuring Fad to fire him. Again, Fairchild's argument is unpersuasive. Fairchild cites to Rosenblum's comment to Fad asking Fad if he had moved on Fairchild as evidence of this pressure. Fairchild does not connect this comment with his disability other than to assert that Rosenblum made the comment after Fad told him about Fairchild's disability. However, Rosenblum had other, nondiscriminatory reasons to wonder why Fad had not moved on Fairchild. Fairchild was a poor performer, and Rosenblum, as President of Forma, had reason to be concerned about him. Additionally, as above, the fact that Rosenblum asked Fad to move on Fairchild does not speak to Bergen's motivation in firing Fairchild. Again Fairchild does not suggest that Bergen was in attendance when Rosenblum said this to Fad, nor does Fairchild assert that Bergen had any knowledge of this conversation. Under either the direct or burden-shifting method of proof, Fairchild's argument is unpersuasive. 53 Because Fairchild cannot establish that the desire to reduce or interfere with his ERISA rights was the motivating factor in his termination, or that the reason Forma gave for his termination was pretextual, his ERISA claim must fail. 54 The district court's decision granting summary judgment to the defendants is hereby A FFIRMED.