Opinion ID: 751769
Heading Depth: 2
Heading Rank: 1

Heading: Is Xerox a proper party defendant?

Text: 11 In Leonelli v. Pennwalt Corp., 887 F.2d 1195 (2d Cir.1989), we held that, [i]n a recovery of benefits claim, only the plan and the administrators and trustees of the plan in their capacity as such may be held liable. Id. at 1199. Recognizing this rule, the district court nonetheless found that Xerox had control, indirectly, over the administration of the plan, and hence that it could be sued for benefits. Crocco, 956 F.Supp. at 137-38 (citing Curcio v. John Hancock Mut. Life Ins. Co., 33 F.3d 226, 234 (3d Cir.1994); Law v. Ernst & Young, 956 F.2d 364, 372-73 (1st Cir.1992); Daniel v. Eaton Corp., 839 F.2d 263, 266 (6th Cir.1988); Adamo v. Anchor Hocking Corp., 720 F.Supp. 491, 498 (W.D.Pa.1989); Ansari-Springs v. Caterpillar, Inc., No. C-94-0742 MHP, 1995 WL 27525, at  2-3 (N.D.Cal. Jan. 19, 1995)). In other words, the district court appears to have held that Xerox was a de facto co-administrator, along with Nazemetz. 2 12 We believe, however, that our reasoning in Lee v. Burkhart, 991 F.2d 1004 (2d Cir.1993), precludes a finding that an employer is a de facto co-administrator jointly liable with the named administrator in a suit to recover benefits under ERISA § 502(a)(1)(B), 29 U.S.C. § 1132(a)(1)(B). In Lee, we rejected a claim that an insurance company--under contract to provide assistance in the management of an employer's self-funded employee benefits plan--was an unnamed plan administrator. See id. at 1010. In doing so, we expressly stated our disagreement with decisions of the First and Eleventh Circuits holding employers responsible as de facto administrators under ERISA §§ 502(a)(1)(A) and 502(c), 29 U.S.C. §§ 1132(a)(1)(A), 1132(c). See id. at 1010 n. 5 (citing Rosen v. TRW, Inc., 979 F.2d 191, 193-94 (11th Cir.1992); Law, 956 F.2d at 372-74). And we cited with approval the Tenth Circuit's decision in McKinsey v. Sentry Insurance, 986 F.2d 401 (10th Cir.1993), which criticized the view that an employer could be a de facto administrator, and held that [29 U.S.C. s] 1002(16)(A) provides that if a plan specifically designates a plan administrator, then that individual or entity is the plan administrator for purposes of ERISA, id. at 404. 3 In short, then, we think that the reasoning--if not necessarily the holding--of Lee precludes employer liability, as a de facto co-administrator, in a suit brought under § 502(a)(1)(B), where the employer has designated a plan administrator in accordance with 29 U.S.C. § 1002(16)(A). 13 Because it is clear from the Plan documents that Xerox was neither the designated Plan administrator nor a Plan trustee, and because it could not, under the rationale underlying Lee, be a de facto co-administrator for purposes of § 502(a)(1), it cannot be held liable for benefits due to Crocco under the plan. It is, therefore, entitled to dismissal of the claims against it. 14