Opinion ID: 698438
Heading Depth: 2
Heading Rank: 2

Heading: Summary Judgment on the ERISA Claim

Text: 17 We adopt the Second Circuit's view in Dister v. Continental Group, Inc., 859 F.2d 1108 (2nd Cir.1988), that the burden shifting analysis applicable to Title VII and ADEA claims, described in section I above, applies also to Sec. 510 ERISA claims: 18 Because the existence of a specific intent to interfere with an employee's benefit rights is critical in Sec. 510 cases--yet is seldom the subject of direct proof--the district court allocated the burdens of production and order of proof in a manner similar to the approach used in Title VII and ADEA cases, where direct evidence of discriminatory intent is also scarce or nonexistent. 19 ... We hold that the McDonnell Douglas presumptions and shifting burdens of production are equally appropriate in the context of discriminatory discharge cases brought under Sec. 510 of ERISA. 20 Dister, 859 F.2d at 1111-12. 21 Section 510 of ERISA, 29 U.S.C. Sec. 1140, prohibits an employer from terminating an employee in order to prevent the vesting of pension rights. Hughes challenged Ritter's assertion that the layoff policy was covered by ERISA. It argued that Ritter failed to establish that the layoff policy qualified as an employee welfare benefit plan or an employee pension plan covered by Sec. 510 of ERISA. Hughes also points out that the layoff policy in question was revoked one year after it was instituted. 22 In Dister, the Second Circuit found that the termination of an employee four months prior to vesting of his pension rights, and the savings to his employer brought about by that termination, were sufficient to create an inference of discrimination. 859 F.2d at 1115. Ritter's claim, however, is much more attenuated. He argues that his ERISA rights were violated because he was prevented from taking advantage of the revised layoff policy adopted about ten weeks after he was laid off. Ritter, however, has failed to show how the layoff policy itself constitutes a plan covered by ERISA, or that there is any nexus between the revised layoff policy and the vesting of his retirement rights. If Ritter could have taken advantage of the layoff policy, which was terminated one year later, it is not evident that he would have obtained vesting of his retirement benefits. We disagree with the district court's finding that it was an undisputed fact that the revised layoff policy was covered by ERISA, and we conclude that Ritter has failed to raise a material issue of fact as to this element of his prima facie ERISA claim. 23 Ritter also failed to rebut the legitimate nondiscriminatory business reasons articulated by Hughes for Ritter's layoff. Hughes said that it laid Ritter off due to a reduction in workforce after carrying him in temporary positions for over a year after his discharge for cause from the AT2FTS and TFTS programs. 24 Both Kagimoto and Hall state that Ritter was laid off because of a variety of problems in their programs caused by Ritter's deficient performance. Ritter himself testified that he was aware at the time that upper management was disappointed with his performance, and that Kagimoto was not familiar with the programs and believed that Ritter could not perform his duties on time and within budget. 25 Hughes kept Ritter on the payroll for over a year while he attempted to find other permanent work. Hughes contends that Ritter was finally laid off due to a lack of work and a company wide reduction in workforce. Hughes offered the declaration of Marie Jaqua, Human Resources Manager, who stated that she made repeated efforts to find Ritter a permanent position after his discharge from AT2FTS and TFTS. Hughes relied on portions of Ritter's own deposition testimony acknowledging work shortages. Hughes also requested judicial notice of significant layoffs occurring at Hughes. We conclude that Hughes succeeded in articulating sufficient nondiscriminatory reasons for Ritter's layoff, and the burden of going forward then shifted back to Ritter to present evidence that the reasons advanced by Hughes were mere pretexts. Washington v. Garrett, 10 F.3d 1421, 1432-33 (9th Cir.1993). 26 Ritter contends in part that he is in fact not required to present evidence rebutting the reasons offered by Hughes. He argues that Hughes never successfully articulated legitimate nondiscriminatory reasons for his discharge and layoff. We reject this contention. 27 Ritter also argues that the district court improperly took judicial notice of widespread layoffs at Hughes based on a newspaper article and that general evidence of layoffs was not sufficient to explain Ritter's individual layoff. Fed.R.Evid. 201(b) provides that judicial notice must be one not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned. An appellate court reviews the district court's decision to take judicial notice under Rule 201 for an abuse of discretion. United States v. Chapel, 41 F.3d 1338, 1342 (9th Cir.1994), cert. denied, --- U.S. ----, 115 S.Ct. 2017, 131 L.Ed.2d 1015 (U.S.1995). 28 We conclude that judicial notice of layoffs at Hughes was not an abuse of discretion. This is a fact which would be generally known in Southern California and which would be capable of sufficiently accurate and ready determination. Apart from the court's taking notice of the layoffs at Hughes, Ritter in his own depositions had indicated that the general shortage of jobs at Hughes had affected his ability to find work. 29 Finally, Ritter argues that Hughes' presentation of two reasons, namely, his prior dismissal for cause from his position under Kagimoto and his final layoff due to reduction in workforce, establishes sufficient proof of pretext to avoid summary judgment. Ritter relies on our holding in Washington, that in the ordinary case, ... fundamentally different justifications [given by the employer] for an employer's action would give rise to a genuine issue of fact with respect to pretext since they suggest the possibility that neither of the official reasons was the true reason. 10 F.3d at 1434. 30 Ritter's reliance on Washington is inappropriate. The rationales offered by Hughes are not inconsistent. The distinct timing and justifications offered by Hughes for its separate decisions to dismiss Ritter from his position under Kagimoto and his lay off one year later distinguish this case from Washington, where an employer simultaneously offered two distinct and arguably inconsistent reasons for an employee's discharge. 31 Having considered Ritter's other contentions and finding them meritless, we hold that Ritter failed to raise any issue of material fact as to essential elements of his prima facie ADEA and ERISA claims, and also failed to rebut the nondiscriminatory reasons offered by Hughes for his discharge and layoff. 32 AFFIRMED.