Opinion ID: 466139
Heading Depth: 3
Heading Rank: 2

Heading: Discretion to Deny Motion

Text: 16 Plaintiff moved to amend her complaint to add causes of action against Ward's Comprehensive Health Care Plan Trust which provided benefits to surviving spouses of employees who were over fifty and died while they were active employees or while on any leave or layoff that was included as Service under the Retirement Security Plan. She also sought to reopen discovery and add additional defendants related to the Health Care Plan. The district court denied her motion. 17 Several factors govern the propriety of a motion to amend: (1) undue delay, (2) bad faith, (3) prejudice to the opponent, and (4) futility of amendment. Loehr v. Ventura County Community College District, 743 F.2d 1310, 1319 (9th Cir.1984). While Ward does contend that an amendment would have been prejudicial to it, the district court relied on the last factor: any amendment would have been futile in that it could be defeated on a motion for summary judgment. See, e.g., Valerio v. Boise Cascade Corp., 80 F.R.D. 626, 658 (N.D.Cal.1978), aff'd, 645 F.2d 699 (9th Cir.) (per curiam), cert. denied, 454 U.S. 1126, 102 S.Ct. 976, 71 L.Ed.2d 113 (1981). 18 If neither Mr. Gabrielson nor the plaintiff were entitled to benefits under the Health Care Plan, it would be futile to permit amendment of the complaint because any claim could be defeated on a motion for summary judgment. We must independently examine the provisions of the Health Care Plan to make this legal determination. See Marchese v. Shearson Hayden Stone, Inc., 734 F.2d 414, 417 (9th Cir.1984). 19 We need not determine whether Mrs. Gabrielson would be eligible for benefits under sections 8.1 and 8.2 of the Plan because in any event coverage under the Plan terminated prior to Gabrielson's death. Section 8.3 of the Plan provides: 20 Termination of Coverage. The Surviving Spouse Benefit coverage hereunder shall terminate ... as to each Employee, on the occurrence of any of the following events: 21 (b) the termination of his employment; provided that, if the Employee's Service is deemed to continue under the Retirement Security Plan, then Surviving Spouse Benefit coverage shall continue hereunder; or 22 (c) the date on which he ceases to participate in the Retirement Security Plan. 23 (emphasis added) 24 As we have shown above Gabrielson was not a participant in the Retirement Security Plan at the time of his death. Accordingly any Surviving Spouse Benefit was terminated under section 8.3(c). 25 Moreover under section 8.3(b) his employment had terminated and his service did not continue under the Retirement Security Plan. As defined in that Plan, 26 Service means an Employee's employment with the Company or with any Affiliate,.... Service shall include the following: 27 (a) Any authorized leave of absence under rules determined by the Committee, which are uniformly applicable to all Employees similarly situated and in accordance with the Regulations; provided the Employee returns to active Service within the period authorized for such leave; 28 (b) Service in any of the United States Armed Forces, if and to the extent required by the Military Selective Service Act, as amended, or any other federal law, or as otherwise recognized by the Committee; 29 (c) Any period of layoff not in excess of 12 months during which the Employee retains reemployment rights and provided that the Employee reports to work within three working days after recall; and 30 (d) Any period of suspension of participation, as provided for in [a section dealing with affiliates and other matters not relevant here]. 31 After Gabrielson's discharge he did not qualify under any of these provisions. We conclude that Mrs. Gabrielson is barred from benefits under the Comprehensive Health Care Plan under both subsections (b) and (c) of section 8.3. The district court's conclusion that adding a cause of action involving the Health Care Plan Trust as defendant would be futile was correct because any such cause of action could be disposed of by summary judgment.