Bacon v. Stiefel Laboratories, Inc. et al, No. 1:2011cv20489 - Document 155 (S.D. Fla. 2013)
Court Description: OPINION AND ORDER GRANTING SUMMARY JUDGMENT FOR PLAINTIFF ON COUNT VI Signed by Senior Judge James Lawrence King on 6/19/2013. (jw)
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Bacon v. Stiefel Laboratories, Inc. et al Doc. 155 U NI TED STATES D I STRI T CO U RT C SO U TH ERN D I STR I O F FLO R I CT DA M I M ID I A VISIO N CA SE N O .11 20489- V - N G CI KI J ES A .BACON , AM Pl i if a ntf , STI EFEL LA BORATORI I C. etal, ES, N , . Dee f ndant s. / O PI I N A ND O R DER G R ANTI G N O N SU M M AR Y JU DG M ENT FO R PLA I FF ON C O UN T VI NTI TH I M A TTER com es be or t Cour upon t pa i m otons f s m ar S f e he t he rtes' i or um y j g n ( /7 /8 . Theen, t pa te ' cos- ve f r j dg nt o t ud me t DE /7; /7) ri he ris r smo o u me n he d caao yj gme cam ( ntVl. fn nt as s e ar i o Co tI t t e lrtr ud nt li Cou ) Dee da s lo e k ulng n un V ha Plitf ha n tpl d a cams u r Rul 1 b- a o 1 b- ( ) a t s ma o y an if s o e ny li nde e 0 5() r 0 5 c nd hu y nl pts hi s c rte fa cam un rRul 1 b-( ) Plitf as s e j me to l ue s e u iis rud li de r e 0 5 b . anif lo e ks udg n n Count 11 of t ERI cl m s a I he SA ai nd, bas on cola er es oppel t s ent r a ed l t al t , he ci e nd m at i iy el m e sofCountI . eralt e nt V The Cour,upon ca ef r vi w oft i t ntbref and t r ul e e he ns a i s t r d1and w ih t benestofor la gum entzfndst tDef nda s M oton s d he ecor t he a r i ha e nt ' i houl , be deni and Pl ntf M oton s d be gr nt ast CountV I J ed ai ifs i houl a ed o . udgm entf Pl ntf or ai if on CountVIm oot Pl ntf ot cl m s. s ai i ps her ai 1l opposton t Def ndant M oton, Plitf fldaRe po e( #11 )o Ap i 23 2 3 a n ii o e s' i an if ie s ns DE 2 n rl , 01 nd Dee a t fldaRe y( #1 )o M a 3, 3. fn n so os dPl nifsMo in i a fnd n s ie pl DE 29 n y 201 Dee da t pp e aitf to n Re p s ( #1 4)fldAp i23 2 3; aniffldaRe y ( #1 )onM a 2, 3. s on e DE 0 ie rl , 01 Plitf ie pl DE 28 y 201 2( r ar ) al gumentwashel on J 11, 201 Se ( .DE #1 4) d une 3. e Tr, 5 . Dockets.Justia.com L BACKGROUND The a bove syl a i i r l e t a s r e of l w s t fl agai t Ste el - t ed cton s e at d o e is a uis ied ns i f La o aore ,l .(' ' o t ( mpa ' a is la e s p. The plitfs i t e e b r t is nc I ' r he s SLI co ny' nd t e d rhi 3 ) an if n h s ca es ha aleged t t SLI a isexecutves m ani a ed ow ne s p of e pl e s ock s ve l ha nd t i pul t r hi m oye t i t prva el hel com pa i vi a i oft Em pl e Re i e ent l om e Sec iy n he i t y d ny n olton he oye tr m nc urt Ac (û SA',29U. C.j 1 01e s q.a t Se urte a Exc ngeAc of1 34, t$ ERI ' ) S. 1 t e , nd he c iis nd ha t 9 1 U. C.j 78.S ctc ly,t e e pli if ha alge t tt r s c i de e n s 5 S. pe i a l h s antfs ve le d ha he e pe tve f nda t s m ir es nt d t s a us of t c pa t i pr l pr i f om is eve uals e t s epr e e he t t he om ny o m opery oft r t nt al o Gl xosm ihK lne,whi had notbe di cl ed t pa tci nt i t Em pl a t i ch en s os o ri pa s n he oyee St ock Bo sPln (S nu a S ESBP'ort $ a '. ' he $ n' Pl ) Plitf J me Ba on (% a on ' i a f r r e o e of De e da SLI a an if a s c û c ' s o me mplye ) f n nt nd pa i pant i t ESBP.H e pr ous y s ved as a nam ed pl ntf i a put i cl s rtci n he evi l er ai if n atve as a i fl J y 6,2009 on behal of f m erpari pant i t ESBP.Bacon etal v. cton ied ul f or tci s n he . Stee Lab atre ,I . e al,No.0921 7ICI KI (ç a sAci Compli ) i l or o is nc, t . f - 8 - V- NG s s ton cl anf', Thi Cour s m arze t cl sale tonsofsoc m ani a i a f l s: s t um i d he as lga i t k pulton s olow Undert or gi t m soft Pln,t pari pa scoul nots l tade,or he i nal er he a he tci nt d el, r r de t i s esunl st s par t f om t com pa atwhi h tm e e em he r har es hey e a ed r he ny, c i t had t rghtt Sput't i s est Com pa Thati ,t had t rght hey he i o d ' he r har o ny. s hey he i t de a t tt Com pa pur has t rs r ,and t Com pa had a o m nd ha he ny c e hei ha es he ny dut t buy t m w ihi a c ti perod oftm e.. y o he t n era n i i .. Be nni i 2007,t Stef D ef gi ng n he i el endant engaged i a s i ofa i t s n eres ctons hat Pl ntf scl m am ountt a s hem et f ce em pl est s lt rs e ai if ai o c o or oye o el hei har s 3Se Fi t v. Stfe L s, n .e al No. - 1 7ICI KI ( i dJ y 6 2 9) Fre v Stfe e nnery i l ab .Ic, t . 092 8 - V- NG fl ul , 00 . ï# . i l e , e , e fab .I . e al, l12 3- V- G ( a c 11 2 1 ) 1 07 Can , nc v S i lLab . I . s, nc, t .No. - 085 Cl Km M r h , 0 1 ; 00 9 ada I . . te fe s, nc, e a.No.1- 9Cl SCOLA (ie J l 1 201l; E. v Stee Lab.Ic,e als l12 38 t l, 12238 - Vfld uy , )S. C. . i l s, n t .No. -44 f CI ZLOCH (ie De 1 2 ll; tn ihe alv Ste l ab .Ic, tal, 1-421 Cl Vfld c. 2, 0 )Mariolc t . . i L s, n e .No. 22 2- Vfe ALTONAGA (ie No 27s 1 ) fld v. 20 2 . bac t t Com pa a a bel - a ketpr c whie sm ula k o he ny t ow m r i e, l i t neousy pl nni l a ng t s lt Com pany ata m uch hi o el he gherprcet w asofer t Pl ntfs. For i han f ed o ai if yea s t Company hasm ai ai d is sance t ti w ihest r ai a f iyr , he nt ne t t ha t s o em n am l c r l oper i I ontoled aton. ndeed,on M a c 8,2007,a ari e appear i t rh n tcl ed n he M i iH er d s a i t t Company' CEO,Cha l W .Stef ,had s d am al t tng hat he s res i el ai t tt Co n ha noplns(ojgopu i. we r t n be a t a pe r ha he mpa y d a t blc Ho ve , hi gs g n o p a ot r s when,i Augus 2007,t B l ks one Gr he wi e n t he ac t oup,an as etm ana e s gem nt company t s alze i t ng c hat peci i s n aki ompani publc,i t $500 milon es i nvesed li i o t Com pa a r ve i r t n ane cl sofsoc w orh nt he ny nd ecei d n e ur w as t k t a oxi t y $60, pers r a as ton t Compa sboa d of ppr mael 000 ha e nd ea he ny' r die or . one hel s anot rH e al a tcl on A ugus 1 2007 r pored t t r ct s N t es , he r d ri e t 0, e t ha t Com pany s r s i ha no pl t go publc. he tes ed t d ans o i I f ct s etm e i N ovem ber2008,t Com pany be t di c sw ih n a , om i n he gan o s us t pot ntalbuye st pos i e s e oft Com pa Then,on N ovem be 21 e i r he s bl al he ny. r , 2008,t Com pa s ntoutisr gul rnotc t Pl n pa tci s,r tng he ny e t e a i e o a ri pant epori t t prce oft s ock- ascal at by an i pende a ai er w a hat he i he t cul ed nde nt ppr s - s $1 469pers e.Howe ,t sc 6, har ver hi ommuni ton al notie Pl cai so i d an pa tci nt t ,asofJa y 1,2009,t Pl n w a bei t r i ed and r i pa s hat nuar he a s ng e m nat me ge it t Co n 4 ( pln. e ve , hec r d n o he mpa y 01k) a Mor o r t ommunia i sae c ton t t d t t f t Er ttm e i t Com pa shit y,Pl n pa tci sw er bei ha , or he s i n he ny' s or a r i pant e ng gi n t opton t Sdi r iy't i Compa s r by exer sng a ' ' ve he i o s ve s f ' he r ny ha es ci i s ' put opton- t ti ,an opton t s lt rs r ba t t Com pany a t i ha s i o el hei ha es ck o he t he cur entprc Thi opton coul onl be exer s d durng Fe uar 2009. r i e, s i d y ci e i br y Bac ne alv Stee Lab atre,I c,e al, 7F. pp. 1 ,1 6 ( D. a o t . . i l or o is n . t .67 Su 2d 331 33 -37 S. Fl. f 2 1) 0 0. l t above- t ed ac i , t f l ng f ct ar undiput 4Pl ntf Ba n he syl ton he olowi a s e s ed. ai if con bega w or ng f SLIon J nuar 1 1 a overt f l i t ent yea s n ki or a y 8, 988 nd he olow ng w y r a ccum ul e 25. at d 386449 s e ofSLlcom m on s ock i hi ESBP account A spa tofa har s t n s . r w or or r ton,Pl i ifsempl e w ast m i t on Decem be 8,2008. t kf ce educ i a ntf oym nt er na ed r A t ttm e,t pr ssf a vesed pa tci ntputi hi s est t com pany cons s e ha i he oce or t ri pa tng s har o he itd o f u se : 1 r q s ditiuton; 2)r c i e d srb i i t f r ofsoc f o r tps ( ) e ue t srb i ( e e v itiuton n he o m t k 4Unl ot wie not , t e ef csaetk n fo t J ntPrti Stpulto ( #1 2)a fom t ess her s ed h s a t r a e r m he oi eral i ain DE 5 nd r he i t ntbre i and e bisfl t e o. ns a ifngs xhi t ied her t c rii ae ; 3)sg no a i e a r t nt soc c rii a e t SLI a ( r c i e tfc t s ( i n, trz , nd eur he t k e tfc ts o ; nd 4) e eve pa entfom SLI Thi pr scha ym r . s oces nged on J anua y 1,2009,when SLIi tt ed a r ns iut n da om a i putpr s't tcom bi t dit i i a putseps. lut tc oces ' ha ned he s rbuton nd t On J nua y 20,2009, a ntf s it t o1 diti i e ec i f m , whi h a r Pl i if ubm ted he d s rbuton l ton or c wasdat D ec ber29,2008,el ctng t have a di ti i ofhi s ess t hi ed em e i o srbuton s har ent o s r iem entacc etr ounta Fi iy I t ent and che ng t box t bepai i cas f hi t delt nves m s cki he o d n h or s f a tonals es. a ntf i uded w ih t f m ahandw rten not i ca i t the r ci har Pl i if ncl t he or it e ndi tng ha w ant d t exe cie hi putrght5Pl ntf alo s an e- ai t SLlempl e o r s s i . ai if s ent m lo oyee SuniBur a i t f l i da t tas he t confr r ptoft paper k he m aie f hi he olow ng y ha ked r o im ecei he wor l d or s ûe e i '6Then, Febr r 1 , 2009,SL1pur has hi s e a $16, pe s r il cton. ' on ua y 3 c ed s har s t 469 r ha e. Slls $83, 7. i cas t Pl ntf and apr is y not f $334, 53 t hi w ent 61 88 n h o ai if om s or e or 471. o s Fi iy r iem e ac delt etr nt count Pl i ifl e aleged i t Cl sA cton Com pl ntand . a ntf at r l n he as i ai t s ii i depostonst theputhi s r st t com pa .7 e tfed n ii ha s ha e o he ny ButPl ntf ne r ei ai if ver ec ved,nor sgned a r t ned t SLI a diti i ofs ock i nd e ur o , s rbuton t c tfcat s;neiherdi Fi iy on hi beha f Pl ntf alo ne rs gned t ûa om atcerii e t d delt s l . ai i f s ve i he tut i put'f m t tDef ndantSL1be us ng on Ja y 1,2009.Upon dicoverng t t ' or ha e gan i nuar s i ha D ef nda SL1di notpos es t f m st hew asr r t s e nt d s s he or hat equied o ubm i i or t t n der o 5Thi not cannotbe f s e ound. However Pl ntf t tfed i hi December 1 2010 deposii t he , ai if esii n s , ton hat û oean t t tIpu myso k frs e. ( c 1 1 1 De a 28 DE #7 2, 1 ) G t oe ha t t c o al ' Ba on 2// 0 p. t 0, wr ' 9- p.99 . 6The f lt oft em ai m i sal aton and sgn- f was:Scoul you pl s confr t you ul ext he l nus ut i i of, s d ea e im hat r vet paper k f Stef Labor ores l ESBP.Is i t you by m ai yest da wih my ecei he wor or i el at i , nc. ent t o l er y t elcin. ( #8 42 p. ) e to ' DE 9- , 86 . ' 7FOrexampl, when a , SAr you 100 per s e t tyou acualy exer s yourputback i e sked s e cent ur ha t l cied n J nu r 2 9, Pl n ifBa ona wee $ f ra Ic nr c l, s'( c 9 28 1 De a p. DE a a y 00 ' aitf c ns rd,( a s a e alye . Ba on / / 0 p. t 44, ' As ' #7 2, 1 ) 9- p.71 . e r s hi putr ght Pl ntf Bac w ihdr f om t cl s a ton a Gl t abovexe cie s i , ai i f on t ew r he as - c i nd ed he syl adi on Febr r 11,2011. t ed on ua y A fe com m enc ng t s ac i Pl ntf a D ef tr i hi ton, ai if nd endant s i a ed i J 2011 t s tpul t n une o e ha tPl ntf sadm i sr tve r edi ,a r r by ERI , by s itng a si e A us ai if nit a i em es s equied SA ubm ti ngl ques i t t Gl xosm ihK lne be iscom m it Tha ques i w asEwhet Ba ton o he a t i nett tee. t ton ç her con exe c s hi rght i or a r i ed s i , n boutJa y 2009,t puthi 25. 6448 s r ofSLIc m on nuar o s 38 ha es om soc t the r ei a a dit i i f om t ESBP t SLl' The com m it del t t k ha ec ved s srbuton r he o .' tee ega ed isaut rt a Pl n Adm i sr t t M iheleK ila vi pr i t ho iy s a nit a or o c l li n, ce es dentofU . be hs f S. nef or Gl axosm ihK lne. The A dm i s r i R e d bef e M s. K ilan w as lm ied t t t i nitatve cor or li i t o he f lo n ie '( )a me r nd s mma ii Ba on' a m i sr tv cam '( )t e o lwi g t ms 1 . mo a um u rzng c s d nitai e l i , 2 h Stpu a in a Ag e me t ( )af r ofdie o t p ES s r st SLI ( )a c p i lto nd r e n ; 3 o m r di n o ut BP ha e o ; 4 o y oft e diti to f r us d p i rt J n r 1 2 9;( G u omai - ut'f r t t h srbu in o m e ro o a ua y , 00 5) i t tc p ' o ms ha a wee us d sa tn o J n r 1 20 ( ) Ba o s diti to r q s f r ;( ) t r e trig n a ua y , 09; 6 c n' srbu i n e ue t o m 7 he c e k a d p o s or no e is e t Ba o i e c ng f r hi s a e ;( ) t Cls h c n r mis y t s u d o c n n x ha e o s h r s 8 he a s Aci Complit ( )ta c i o Ba o sSe e r28, 0de ston; 1 Ba o s ton an ; 9 r ns rpt f c n' ptmbe 201 po ii ( 0) c n' e i t Su Buradae J n r 21 200 ( 1 ta c i o Ba on' De e r 1 201 mal o ni i t d a ua y , 9; 1 ) r ns rpt f c s c mbe , 0 d p ii n;a ( 2)t Co a n i t a ve syld a to e osto nd 1 he mpli t n he bo -t e ci n. l a l t da e Augus 29,2011,M s.K ila det r i t tBacon ha e r s n eter t d t li n e m ned ha d xe cied hi putrghtdes t Ct I k of a l biiy ofan ac ualputrghtf m execut by M r s i pie lhe ac vaia lt t i or ed . Bac ' as r r by t ESBP.M s.Kilan i ca ed t tt abs nce oft putf m on' , equied he li ndi t ha he e he or wa d t i he b ( 1hi s ve a s l sa e n s at si g t hi e r ie oft pu s û we g d y 1 s e r l wo' t tme t te tn o s xe cs ou n he t rgh ,( jhi c t mpor ne sc sma in vi e ma lo hi i e i a d c mplto of i t 2 s on e a ou ontr to a - i f s ntnton n o ei n a f r t e r iehi p rg t a d ( qhi a c p a eoft pr e dswiho p o d n o m o xe c s s ut i h , n 3 s c e t nc he oc e t ut r vi i g n ttc to ofe r rwihi ar a o b etme. ( lin Let r DE #8 - . o i ai n ro t n e s na l i ' Kila te , i ' 9 40) Subs eque t M s. ila sde s on,Pl ntf fl d t Se nt o K li n' ci i ai i f ie he cond Am e nded Complit( #31 o Oc o r1 ,2 1 , d ng Cou tVlf rde lr t r d c e . I an DE ) n t be 7 0 1 a di n o ca ao y e r eF n t atr tvet d ma sfralge vi ainso ERJ ( u s1 1)a s c iis he lenai o a ge o le d olto f SA Co nt -11 nd e urte fa d ( un I ,heSe o Ame d Co an s e ad c a ai n, r ua t 28 r u Co t V) t c nd nde mpl it e ks e lr to pu s nt o U . C. 2 , ha Pli ifne rpu hi s r st SLI Pl itf sM o i n f rSu a y S. j 201 t t antf ve t s ha e o . an if to o mm r J udgm e i m or poi e a gui t tt de s on ofM s Kila asPl nt s e nt d, r ng ha he ci i . li n, an A dm i sr t ,w asar tar and ca i ous Relefunde CountV lw oul m oot ni ta or bir y prci . i r d Pl ntf sot cl m s a r r t thebe compens t f hi s e a t s er e ai i f her ai nd equie ha a ed or s har s t he am at ast ew ho hel s r whe t m er w ih Gl xosm ihKlne cl ed.The m er r hos d ha es n he ger t a t i os ge agr mentval d each s eat$68, 29pl contnge bonus ,whih t fr ee ue har 515. us i ncy es c hus a ha r ule i t alpa ve es td n ot ymentof$71, 1 pe s e. 485.0 r har I LEGAL STANDARD I. Summayj g nti a prpraewhee te pla n a d s ppo tn maeil r ud me s p o it r h e digs n u rig tras es a i h t tt r i no genui i s ast any m at ralf tand t tt m ovi pa t i t bls ha he e s ne s ue o e i ac ha he ng ry s e tte t j gme ta amatro lw. e Fe R.Ci P.5 Ceotx Cor v Catet n il d o ud n s te f a Se d. v. 6; l e p. . r t, 4 U. 31 3 ( 98 ) The mov n pa t be r t b de o poi i t t e pa tof 77 S. 7, 22 1 6 . i g ry a s he ur n f ntng o h r t r cor t s st a e ofa ge ne is ofm at ralf t SeeAdi s v.S. he e d hat how he bs nce nui s ue e i ac . cke H Kr s d Co ,398 U. 1 1 7 ( 97 ; ln v T o Foo s I . 1 1 F. 6 ,64 es r . S. 44, 5 1 0) Ale . ys n d , nc, 2 3d 42 6 8Th Se o dAme de Co antas a de acam f rbea h o fduca yduy ( n V) whc t e cn n d mpli lo d d li o r c f i ir t Cou t , ih he Co t s se wi p eu c ( /43 . ur dimis d t rj die.DE / ) h ( 1h Ci.1 7 .Onc t m o ng pa t e t bls e t a e e ofa g n ne is o 1 t r 99 ) e he vi ry sa ih s he bs nc e ui s ue f m at r a f ct t bur s fs t t nonm ovi pa t t go beyond t pl ngs a e i l a , he den hit o he ng ry o he eadi nd desgna ets is f t s i t tt ei a genui i s f ti .'Cel e 477 U . i t ûpec tc ac s how ng ha her s ne s ue or ral' otx, S. a 3 ,s e alo Ch ne,I c .IalanAcie a o Fl ,I c,931F. 1 2,1 7 t 24* e s a l n .v t i tv we r f a. n . 2d 47 47 ( 1h Ci.1 91 ( di t a t n nmo i pa t mus d o f r r wih sg t nt 1 t r 9 ) hol ng h t he o v ng ry t s me o wa d t i nika , c p o tve e de e d monsr tng t e se e o a tibl is of f c ) û umm ay r bai vi nc e tai he xit nc f ra e s ue a f'. t s r j dg n ma be i p o it e n wh r t pa te a e o te ba i fcs bu u me t y na pr prae ve ee he ris gre n h sc a t, t diagr a s ee bout t f ct i e e s t t s d be dr w n f om t e f t ' Warror he a ual nf r nce ha houl a r hes ac s.' i T gb eTr s Co.I .v M/ ombi e anp. , nc . VNanFu g, 5 F. 1 4,1 6 ( 1h Ci.1 3 . n 69 2d 29 29 1 t r 98 ) On a moin fr s to o ummay j g nt te c u tmus viw t e de e a rs ve a1 r ud me , h o r t e he vi nc nd e ol 1 i e e s i t lght m os f abl t t nonm ovi pa t See Ande son v.Li rt nf r nce n he i t avor e o he ng ry. r be y Lob y, nc, 7 U. 24 2 ( 98 ) b I . 47 S. 2, 55 1 6 , 1 1 DI 1 . SCUS ON SI Co ntVIs e ade lrtr j me tt tPlitf ne e pu hss rst SL1 u e ks caao y udg n ha anif v r t i hae o and,t ,w asa s ehol a t tm e t Com pa m e ged w ih G l hus har der t he i he ny r t axosm ihK lne.I a t i f s e der at t tm e of t m er r he w oul be entte t be com pens t a har hol he i he ge , d il d o a ed t $68, 29pl contnge y bonuse pers r nott $16, her ved.Pl ntf and 515. us i nc s ha e, he 469 ecei ai if Def endant pr ousy s i a ed t ha t s que ton ans ed by t Pl s evi l tpul t o ve hi si wer he an Adm i sr or and t aut iy was del e t M s.K ilan.Bot s des t t s cas nitat , hat hort egat d o li h i o hi e, Plitf a Dee da t,ha fld moins f r s mmay j gme o Co t V1 anif nd fn n s ve ie to o u r ud nt n un , cont ng t t t e a e no r eva is of m at r a f t The i s of 1 w f t endi ha her r el nt s ues e i l ac . s ue a or he Cour ' det m i ton, a bref and or l a gued by couns , i w he he t Pln ts er na i s i ed aly r el s t r he a Ad nitaors d c so t a Pl itf h d s d (1 t' hi s r s t SL1wa abir r mi sr t ' e ii n h t an if a ol $ ' s ha e o pu ) s r ta y a caprci and,t r or excteded he l l dicr i See Jet v.Bl Cros & nd i ous he ef e, r ega s eton t ue s . Bi Shil o a,8 0F.d 11 ,11 ( 1hCi. 98 ) ue ed fAl. 9 2 37 39 1 t r 1 9 . The ar tar a ca i i s a r i def r ntal The Cour ' r e i not t bir y- nd- pr c ous t nda d s e e i . ts ol s o s econd- s t pl n adm i s r t but t r vi w whet t r w a :a r tonal gues he a nita or o e e her he e s $ a i j siiain' f rh rde iin.Grfs v la Fa l ca e Dflà 'l Pln,723 F. u tfc to ' o e cso i l .Det mi r , lf a f ys f 2d 8 2,8 ( 1h Ci.1 4) Ta i i o a c ntonl t a nita i r c r b f r t e 2 25 1 t r 98 . k ng nt c ou y he dmi sr tve e o d e o e h pl adm i sr t , t Cour l an ni ta or he t ooks f w he her t e w as a r ona e bass f pl n or t her eas bl i or a a m i sr t ' d c son. a e v Re inc St nd d,5 4 F.d 1 1 1 - ( 1h Ci. d nitaors e ii Glz r . la e a ar 2 3 24 , 246 47 1 t r 20 ) The a e e of a r a o a e ba i i t sn q a no of a a bir r a d 08 . bs nc e s n bl ss s he ie u n n r ta y n c prc o sde ii n, ha n v Ja kEc e d Cor ,11 F.d 208 21 ( 1h Ci.1 97 . a ii u cso S nno . c k r p. 3 3 , 0 1t r 9 ) l a r ona e bas s e s s f t deci i Si m us be uphel as notbe ng ar tar or f eas bl i xit or he son, it t d i bir y ca i ous,eve i t e i e de t tw oul s prci n f her s vi nce ha d uppor a contar dec s on.'Jet,890 t r y ii ' t F. a 11 Buta deci i i ar t a y a ca i ousw he t e i evi nce s 2d t 40. son s bir r nd prci n her s de uppori tng a cont a y dec s on a t t evi nce i not contadi t by t adm i sr tve r cor rr i i nd ha de s r c ed he nit a i e d. Le is nv Reinc Stnda df4 I s Co.2 F.d 1 21 1 27( 1hCi. 1. vn o . la e a r A n . , 45 3 3 , 3 1 t r 200 ) Havi r ew e a com pl t copy oft A dm i s r i Rec d,9 t e Cour snds ng evi d ee he nitatve or h t t t M s.K ilan, as Pl n Adm i sr or ha li a nitat ,had no r onabl bas s f de er i ng t eas e i or t m ni hat Pl ntf puthi s es t t Com pa The A dm i s r i Recor does nots ai if s har o he ny. nitatve d uppor t t he concl i t Pl ntf e ci hi put rght I us on hat ai if xer sed s i . ndee d,an i pari a ys s of t m tal nal i he 9Def dant a tched a copy oft Admi sr tve Recor t t rM oton f Summar Judgment See he nita i d o hei i or y . en s ta ( / - ; 9- . DE / 1 #7 2) 79 Adm i sr tve Re d upon whi h t Pln A dm i sr or r ached her de s on cl ry nita i cor c he a ni tat e ci i ea l dem onsr es t Pl i if di notput hi s es t t Com pany. D ef nda s f l t tat hat a ntf d s har o he e nt ai o i ntf a pori oft Adm i s r tve Recor s de i y ny ton he nit a i d ugges i o her s t r a gum e s tng t wi e; hei r nt , à di t Pl n Adm i sr t s de son,r s e ie y upon wha Pl ntf i ended t do. s d he a nit a or' ci i e t ntr l t ai i f nt o The ef e, t Cour fnds t t Pl Adm i sr t ' de s on w as a bir y and r or he t i hat he an nit a or s ci i r tar caprci See Levi on,245 F. at1327. i ous. ns 3d Fis ,Pl ntf i e t e ci e hi put r ght w as ir eva t t pr s of r t ai ips nt nt o xer s s i r el nt o he oces l l r rng SLI t buy hi s ock.The ESPB pr ded pa i pant w ih a f m al egaly equi i o s t ovi rtci s t or pr s f puti soc t SLI The pr es w as explcil outi i bot t Pl n oces or tng t k o . oc s i ty lned n h he a bo klt( #7 1 pp.5 )a a die to me o a um fo t hu n r s ur e o e DE 9- , -96 nd r ci n m r nd r m he ma e o c s be ft ma ge ( # - pp. 1 -1 1 .A pa tcpa ts i e to wa n r a ie ne is na r DE 79 2, 35 4 ) rii n ' nt n i n s ot e lz d unl s t f l es hey olowed t e s e ,and t Pl A dm i sr oracknow l dge t Pl ntf hos t ps he an nitat e d hat ai if di not f l eihe t pr orpos - anua y 1,2009 pr s f puti hi s r t d olow t r he etl r oces es or tng s ha es o SLI Y e ,oft t ee f t st ts s d out e ghed t Cl ofa l lt 'oft put . t he hr ac or ha he ai w i he dack vaiabiiy' he f m , t o w ent t Pl ntf i e t exer s hi put rght1 The cour, w ihout or w t t o ai ifs nt nt o cie s i .0 deci ng whe herPl ntf Bac w asr r t f l t o1 pr di t ai if on equied o olow he d ocedur i pl w he es n ace n hi em pl entwas t m i t on Dece be 8,2008 ort l om atc- ' pr s oym er na ed m r he i aut i put' ocess i n pl e whe he atem pt t r ve a di ti i of hi s r , fnds t t t ac n t ed o ecei srbuton s ha es i ha he 1 Addii l , t Pl Admi sr or m ichar t ied Pl ntf ' i e as confr i t he 0 tonaly he an nitat s ac erz ai ifs nt nt imaton hat exer s hi putrght Fis,she m ade t concl or fndi t tbecaus he t tfed i depostonst cied s i . rt he us y i ng ha e es ii n ii o puti hi s r t SLlhe i f di s Second,she m ir t nat e ofPl ntf sJ r 21,2009 tng s ha es o n act d o. s ead he ur ai if' anua y e- lt SuniBura as confr ng Pl ntf ûi enton and complton of a f m t exer s t put mai o i imi ai ifs çnt i ei or o cie he rght' l f ,t e- ai r i a' n act he m l equesed confr a i when SuniBura r ved Pl ntf sel i pape k. t im ton i ecei ai if' ecton rwor Undert putpr sst tgover t f m Pl ntf s it el tng t r ve diti on ofs es he oce ha ned he or ai if ubm ted, ec i o ecei srbuti har wast frtoff sepsand di notr r SL1t pur e t s esuntlt wer sgned,not rzed he is our t d equie o chas he har i hey e i ai and r t ned t t Company. e ur o he A dm i sr i Re d ca be r d onl one w a Pl ntf di not f l eihe ESPB nitatve cor n ea y y: ai if d olow t r pr sf exe cii hi putrghta t r or coul notr r SL1t buy hi s es oces or r s ng s i nd, he ef e, d equie o s har . A s an ESPB pari pa ,Pl ntf w as pr bied f om of e i t s l s es a coul tci nt ai if ohi t r f rng o el har nd d onl ca h outby e r sng hi putrght J t as he coul not of e t s lhi s r t y s xe ci i s i . us d f r o el s ha es o SLIout i oft putpr s SLIc d nota pta of erofs eorm a isow n of er sde he oces , oul cce n f al ke t f t buy out i t f m a putpr es . o sde he or l oc s Second, t onl ot r f t t t Pln Adm i s r or s d out ei he y he ac or hat he a ni tat ai w ghed Pl ntf f l e t s ai ips aiur o ubm i a put f m w a Shi a pt nce of t pr t or s k s cce a ht oceeds w ihout t pr di notûca i ofe r w ihi a r as ovi ng i ton r or t n e onabl tm e. Thi f t ,lke t ot t o, e i ' s ac or i he her w ' s s t be i l eem o ntuenc by M s. Kila s per pton of Pl ntf ' i ent i al o i ed li n' ce i ai i fs nt ; t s s concl or W ih i,t Pl n A dm i s r or atempt t pr t exer s of Pl ntf s us y. t t he a nitat t s o ove he cie ai if p rgh wih a ne tv (.. b c us Pli ifd d no no iy SLIt a pa e twa i ut i t t gai e ie, e a e antf i t tf h t ym n s n e r r t pa n wa n i e r r . pu tn s r st SLIr quie po ii a to ro , he yme t s ot n ro ) But tig ha e o e r d stve c in, noti ton ora om i son. nac i n si The ca es a e t by D ef ndant i s s ss red e s n uppor of t r l t hei egalposton on CountV l ii ar notper us i e s asve. I Gr sv Det Fa y- r Diabii t a mi srtvec n @ . la mi ca e s lt he d nitai ommie sd cso y t e' e iin t perai t i er tng t s t ned o nt pre i he cope of elgi lt i t em pl i biiy n he oyee beneft pl n.723 F. is a 2d 822. The de s on de ng beneGt w a uphel beca e t adm i s r i com m it had cii nyi s s d us he nitatve tee bee gi n t excl i a hort t i er e t s n ve he us ve ut iy o nt pr t he cope of elgi lt f beneft and i biiy or is t r w as a r tona bass f t c m it s i e pr t i t t s vi beneft coul he e a i l i or he om tee' nt r e aton ha ur vor is d notbe r ns at once t m i t asa r ul ofr m ar i ge.1 at825.I t above- t ed ei t ed er na ed es t e r a d. n he syl a i M s K ilan' decii di not i e pr t ESBP' put pr s a s cton, . li s s on d nt r et he S oces nd ugges a t r i atonalbas s f r rng SLI t pur has t s es of a ESPB pa tci ntw ho had i or equii o c e he har n r i pa notf l e t f m alputpr s H e dec si m e el s a ed t ,bas on Pl ntf s olow d he or oce s. r i on r y t t hat ed ai if i e t e ci e hi put r ght and hi i ton afe r cei ng pa ent f hi s es nt nt o xer s s i s nac i t r e vi ym or s har , t tweee her r nough f t t tnd t Pl ntf ha f l ed t put pr s e t ac s o i hat ai if d olow he oces , ven hough s ock c tfca esw er neveri s a no da om a i put'f m coul be f t erii t e s ued nd sut tc- ' or d ound. Th dititc u ti J t v Bl Cr sa d Bl Shil o ab ,I .erd i e src o r n et . ue os n ue ed fAl ama nc re n fndi t t Bl Cr s pl adm i s r t ' dec son was a bir y and c i ous i ng hat he ue os an nita or s i i r tar aprci bas d on (i or a i t ha notbeen pr e e t Bl Cr s.'890 F. a 11 But e çnf m ton hat d es nt d o ue os ' 2d t 39. i t above- t ed acton,t Cour ' tndi i bas sol y on t A dm i sr tve n he s yl i he ts s ng s ed el he nit a i Rec d bef e t Pl Adm i sr t at t tm e s m ade her de s on.Tha r d or or he an nit a or he i he ci i t ecor al pr de no r onabl bas s f t Pln A dm i s r t ' deci on t t Pl i if one ovi s eas e i or he a nit a or s si ha a ntf exer i ed hi putr ght Ther or t decii was ar t a y and ca i i .Se i a cs s i . ef e, he s on bir r pr c ous e d. t 11 40. Fial i Br wnv BleCr s a BleShil o ab i wa ra on bl fr n ly,n o . u o s nd u ed fAl ama t s e s a e o t adm i sr t t deny a cl m when m edi l r ds pr r at t tm e of t he ni ta or o ai ca ecor epa ed he i he cl i a ' hos t l adm i s on conti t w ih a s e a m nts pia si l c ed t ubs quent l ter f om t c ai a ' et r he l m nts doc or de aii em er ncy s pt s.898 F.2d a 1 1 t t lng ge ym om t 57 -72.The pl adm i sr or an ni tat , afe s eki addii tr e ng tonal i or aton fom t c ai a ' doct a r vi no r y, nf m i r he l m nt s or nd ecei ng epl f ound t hos t adm i s on r dst bem or r i bl ûEven a s f i er t fduci y he pial s i ecor o e ela e. d el-nt es ed i ar i e il d t choose an a r nty m or r i e s ce of i or a i when s ce s ntte o ppa e l e elabl our nf m ton our s conti .'1 a 1572. But Br l ct' d. t own t i unlke t f t i t above- t ed ac i oo s i he ac s n he syl ton. Pl ntf nevers d he s it t ' om a i put'f m orr ved, s gned,not i d ai i f ai ubm ted he ' aut tc- ' or ecei i arze a r t ned s ock ce tfca es t SLI H i de ii t tm ony i ca es t t he nd c ur t rii t o . s poston es i ndi t ha s it d t diti i el c i f m and t the i e ubm te he s rbuton e ton or ha nt nded t exe c sehi putr ght But o ri s i . t r i no conti tng e de t tPl i ifac ua l com pl t t ESPB putpr s he e s l c i vi nce ha a ntf t ly e ed he oces . The f s of t s cas a e m or sm ia t t e i Levi act hi e r e i l r o hos n nson v.Relance St i andar d LfeI u an e Co.i whihalwye wa d niddia lt be ft u rhi 1w fr s ns r c , ,n c a r s e e s biiy neis nde s a im' e o ebe ft pln.2 F. 1 ( 1h Ci.20 ) Asd fom a ç e tfo hi mplye ne is a 45 3d 321 1 t r 01 . i e r û por r m s r l w tr i ca i t t Levi on w as a f ltm e e pl a s m ndi tng ha ns ul-i m oyee, t r w as no e dence ' he e ' vi be or t pl n adm i sr t t cont adi t Le ns s Se dence f om hi phys c a f e he a nit a or hat r c ed vi on' svi r s iin t the was t aly diabl under t t r s of t pl ' 1 a 1 ha ot l s ed he e m he an.' d. t 327.U pon t e f t , hes ac s t El ve h Cicui afsm e a diti tcour fndi t t pl adm i s r t ' de al he e nt r t fr d sr c t i ng hat he an nita or s ni ofbe isw asa bir y and ca i ous beca e i l neft r tar prci us t acked a r onabl bass. d. eas e i 1 The undiput f s i t s cas m a pl n t t whie Pl ntf m a ha s ed act n hi e ke ai ha l ai if y ve i e d t put hi s r t SLI he di not s i t r st pa m or a nt nde o s ha es o , d ubm t he equi ie pe k nd, t ef e,ne ac ualy di s Ther i no evi nce i t A dm i sr tve Recor t t her or ver t l d o. es de n he nit a i d o he contar A cc di y,t Pl Adm i sr t s decii w as ar t a y a ca i ous. r y. or ngl he an nit a or' s on bir r nd prci S e i a 1 7.Plitf i e ild t j dg n a amatro lw on Co tV1 The e d. t 32 an if s ntte o u me t s te f a un . Cour need not a es t r m ai ng Count be t ddr s he e ni s cause t y a e m oot by a fndi f he r ed i ng or Pl i ifon CountV l antf . l .C ONCLUS ON V I A c di y, afer ca ef c der i a t Cour bei ot wie f l cor ngl t r ul onsi aton nd he t ng her s uly a s d, i i O R DERED ,A DJUD G ED , a D ECREED t Pl i i fs M oton f dvi e t s nd hat a ntf ' i or S umma y J me t( # )be a i he e y,GRANTED ast CountVI J me t r udg n DE 87 , nd s r b o . udg n i e e ed f Pl i if on Count V I and a1 pendi m otons a e D EN I s nt r or a ntf , 1 ng i r ED as m oot . Pl ntf couns i diec ed t fl a pr ai ips el s r t o ie opos or ofFi J ed der nal udgm ent i a danc n ccor e wiht tr oft sOr e wihi fve()da ,wi teCo r rti ngj rs ito t t he ems hi d r t n i 5 ys t h u t eani u idcin o h a fx f esand cos s i a i bl fi e t , f pplca e. D O NE AN D O RD ER ED i Cham be s a t Ja e Lawr nce K i Feder n r t he m s e ng al J tce Buidi and Unied St t Courhous M i i Fl i t s 1 h da of J usi l ng t a es t e, am , or da, hi 9t y une, 2013. ! . J ES LA W RENCE K I G N UN I TED STATES DI STRI J G CT UD SOU THERN DI STRI OF FLORI A CT D Cc:A I Couns ofR ecor l el d 1 3
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