Opinion ID: 72773
Heading Depth: 2
Heading Rank: 6

Heading: Dismissal Of Engelhardt's ERISA Claim (Count II)

Text: 52 After learning that Paul Revere had paid Engelhardt certain disability benefits sought in the ERISA count (Count II) of the amended complaint, the district court directed Engelhardt to file a motion for a voluntary dismissal pursuant to Federal Rule of Civil Procedure 41(a)(2). After the court's request, Engelhardt complied but emphasized in his motion for voluntary dismissal that the issues of attorney's fees, interest on back benefits, and extracontractual damages had not been resolved. Engelhardt specifically requested the dismissal be without prejudice and with leave to refile a claim for attorney's fees and interest or extracontractual damages (if recoverable under ERISA) in the event an agreement cannot be reached between the parties on those issues. (Engelhardt's Mot. Dismissal Count II, at 2.) Paul Revere's response to Engelhardt's motion for dismissal also highlighted the absence of resolution of important issues in both Counts I and II. Paul Revere's response noted that Paul Revere had filed a motion for summary judgment on these issues claiming that all benefits due under ERISA in Count II had been paid, that Engelhardt was not entitled to recover any extracontractual damages under Count II, and that Count I was preempted. Paul Revere's response requested that any dismissal should reflect entry of judgment in favor of Paul Revere. 53 Nonetheless, the district court granted Engelhardt's motion for voluntary dismissal based on what the court described as the parties' de facto settlement. The court's order completely dismissed Count II and remanded Count I to state court. Despite the complete dismissal of Count II and remand of Count I, the court's order also stated that the court retained jurisdiction over the resolution of the issues of attorney's fees and interest claims in Count II. We review the dismissal of Count II for abuse of discretion. See Fisher v. Puerto Rico Marine Management, 940 F.2d 1502, 1503 (11th Cir.1991). 54 The district court's directive that Engelhardt voluntarily dismiss his ERISA claim in Count II was improper. Contrary to the court's description of the procedural posture of Count II, the parties had not settled all claims in that count. There is no indication in the record that Paul Revere paid past due benefits in exchange for Engelhardt's agreement to compromise part or all of his claims for more interest, attorney's fees, or extracontractual damages in Count II. Rather, Paul Revere's payment of the past due benefits was expressly unconditional and resulted from its conclusion that the prior denial of benefits was in error. Likewise, both parties made clear to the court that serious, contested issues surrounding Engelhardt's substantial claims for more interest, attorney's fees, and extracontractual damages were unresolved. In addition to these unresolved issues, the district court did not rule on Paul Revere's motion for summary judgment on both Counts I and II. 55 Given the procedural posture of the case and the unresolved issues in Count II, the district court abused its discretion in dismissing Count II as settled when it was not and in attempting to retain jurisdiction over substantial unresolved issues while at the same time dismissing Count II.