Opinion ID: 217949
Heading Depth: 3
Heading Rank: 2

Heading: Video Conference.

Text: In response to questions about the 5+5 Option, Qwest conducted a question-and-answer video conference. See Kerber, 656 F.Supp.2d at 1283. The following colloquy appeared in the video: Moderator: ... There is a statement in some of the paperwork that people received in their packets that's raised some questions, and that is the statement that says the company reserves the right to change benefits. There are some people worried about that. Can you speak to that statement? Human Resource Director Charlie Kamen: Sure. That's a typical reservation of rights statement that appears in virtually every employee benefit plan, not just U.S. West benefit plans, but all companies' benefit plans. It is not intended to be divisive, it is not intended to be a below the board type of thing. What it is intended to do though, is it's intended to give the company the ability to modify the plans as circumstances and conditions change in the future. It's really intended to make the plans more meaningful and more affordable not only for the employees but for the company. Id. (emphasis added). Plaintiffs argue that the statement by Mr. Kamen represented that Qwest did not reserve the right to amend or terminate the Plan, and that the video conference reflected an effort to conceal the possible adverse consequences of the ROR in order to induce retirees into accepting the 5+5 Option. Aplt. Br. 52. Thus, Plaintiffs assert that this segment of the video conference constitutes a material misrepresentation. Id. at 53. They argue that the reduction of the life insurance coverage does not make the Plan more meaningful and/or more affordable for retirees. Id. at 54-55. The district court held that the video conference was not a misrepresentation, as it clearly indicated that Qwest maintained the right to alter or terminate the Life Benefit. Kerber, 656 F.Supp.2d at 1289. Again, we agree. Even assuming, without deciding, that an oral statement that contradicts unambiguous, written plan language could form the basis of a material misrepresentation claim, the statements in the video conference are not misrepresentations. But see Ladouceur v. Credit Lyonnais, 584 F.3d 510, 512-513 (2d Cir. 2009) (holding that oral statements that contradict clear plan language cannot form the basis for material misrepresentation claims). In the video conference, Mr. Kamen unequivocally states that the ROR is intended to give the company the ability to modify the plans as circumstances and conditions change in the future. Kerber, 656 F.Supp.2d at 1283. This statement correctly explains the ROR: the company retains the ability to modify the Plan as conditions change. Mr. Kamen then notes that the ROR is intended to make the Plan more meaningful and more affordable not only for the employee, but for the company. Id. Again, this statement is correct: the ROR clause permitted Qwest to modify the Plan both to benefit retireesas it did in 1997 by adding the Minimum Benefits Provisionand to make it more affordable to the company, as it did by reducing the Basic Life Coverage to a flat $10,000. The video conference is completely accurate, and therefore cannot constitute a material misrepresentation. This is particularly true where, as here, the various written documents unambiguously reserve in Qwest the right to amend or terminate the Plan.