Solomon v. Bert Bell/Pete Rozelle NFL Player Retirement Plan et al, No. 1:2014cv03570 - Document 42 (D. Md. 2016)
Court Description: MEMORANDUM AND ORDER Granting in Part 37 Motion for Prejudgment Interest. Signed by Judge Marvin J. Garbis on 6/8/2016. (bas, Deputy Clerk) .
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Solomon v. Bert Bell/Pete Rozelle NFL Player Retirement Plan et al Doc. 42 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND JESSE SOLOMON * Plaintiff * vs. * THE BERT BELL/PETE ROZELLE NFL PLAYER RETIREMENT PLAN and THE NFL PLAYER SUPPLEMENTAL DISABILITY PLAN CIVIL ACTION NO. MJG-14-3570 * * * * * Defendants * * * * * * * MEMORANDUM AND ORDER RE: PREJUDGMENT INTEREST The Court has before it Plaintiff's Motion for Prejudgment Interest [ECF No. 37] and the materials submitted relating thereto. The Court finds no need for a hearing. As set forth in the Memorandum and Order Re: Summary Judgment [ECF No. 35], Plaintiff Jesse Solomon ("Solomon") filed an application with the Disability Initial Claims Committee ("the Committee") for total and permanent disability benefits ("T&P benefits") that was, ultimately, denied by the Retirement Board ("the Board") on November 19, 2009. On December 12, 2010, Solomon filed a second application seeking T&P benefits under the NFL Retirement Plan ("the Plan") related to neurological and cognitive impairments resulting from countless helmet-to-helmet impacts sustained during his NFL career. AR 564-68. The Committee was deadlocked as to whether Solomon was totally and Dockets.Justia.com permanently disabled ("TPD"), and his application was deemed denied on March 9, 2011. AR 655. On April 27, 2011, Solomon appealed the denial of the Second Application to the Board. AR 672. On June 21, 2011, an SSA Administrative Law Judge issued a Notice of granting Solomon disability benefits and finding him disabled as of October 29, 2008. At some time thereafter, Solomon notified the Board of the SSA determination. On August 4, 2011, the Board designated Solomon TPD, awarding benefits effective October 1, 2010, but did not award Solomon the higher category of T&P benefits he sought, Football Degenerative benefits, because - it stated – he had not become TPD within 15 years of his retirement. Under the terms of the Plan, this finding meant Solomon was eligible for Inactive benefits only, a lower category of T&P benefits. On September 27, 2011, Solomon appealed to the Board seeking reclassification of his benefits to the higher category of T&P benefits. The Board rejected the appeal on November 16, 2011. On November 14, 2014, Solomon filed the instant lawsuit for denial of benefits, pursuant to ERISA § 502(a)(1)(B), 29 U.S.C. 2 § 1132,1 in response to the Board's November 2011 final denial of Football Degenerative benefits. Plaintiff seeks prejudgment interest at a rate of six percent per annum compounded monthly from October 2010, the effective date of the award of T&P benefits. oppose a grant of prejudgment interest. Defendants do not However, Defendants contend that Plaintiff's proposed award is unreasonably excessive. The Court agrees with Defendants. As stated in Quesinberry v. Life Ins. Co. of N. Am., 987 F.2d 1017 (4th Cir. 1993): ERISA does not specifically provide for pre-judgment interest, and absent a statutory mandate the award of pre-judgment interest is discretionary with the trial court. The district court in this case exercised its discretion to award prejudgment interest in order to compensate Mr. Quesinberry for the loss of the use of his funds. The rate of pre-judgment interest for cases involving federal questions is a matter left to the discretion of the district court. Id. at 1030-31 (internal citations omitted). The period in question herein is a period during which the Maryland common law rate (6% per annum) was substantially in 1 "A civil action may be brought by a participant or beneficiary . . . to recover benefits due to him under the terms of the plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan." 29 U.S.C. § 1132(a)(1)(B). 3 excess of market rates.2 Plaintiff's suggestion that the Court should use this rate and, in addition, compound interest monthly, is beyond the range of reasonable. Moreover, Plaintiff has presented nothing to support the contention that Defendants' having the use of Plaintiff's money would have resulted in a gain to Defendants or loss to Plaintiff at a rate at all near the 6% common law rate. Yet, the rates proposed by Defendants also do not appear appropriate. Because the record does not refute Defendants' contention that the Maryland rate was much higher than the true value of the funds in question during the period at issue, the Court shall award prejudgment interest commencing October 2010 as Plaintiff contends but at one-half the Maryland common law rate, 3% per annum, simple interest, calculated monthly.3 Accordingly: 1. Plaintiff's Motion for Prejudgment Interest [ECF No. 37] is GRANTED IN PART. 2 The long-term composite rate published by the United States Treasury for October 1, 2010 was 3.26%, and annually thereafter: 2011 – 2.58%, 2012 – 2.38%, 2013 – 3.41%, 2014 – 2.88%, 2015 – 2.61%. See https://www.treasury.gov/resource-center/data-chartcenter/interest-rates/Pages/TextView.aspx?data=longtermrate. 3 See App. A. 4 2. Plaintiff is awarded $32,292.61 of prejudgment interest to the end of June 2016, with postjudgment interest to commence on July 1, 2016. SO ORDERED, this Wednesday, June 8, 2016. /s/__________ Marvin J. Garbis United States District Judge 5 APPENDIX A Month Amount Paid (Inactive) Total Owed (Football Degenerative) Unpaid Amount Interest on Unpaid Amount (3% Simple) Oct 10 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 977.47 Nov 10 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 963.31 Dec 10 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 949.14 Jan 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 934.97 Feb 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 920.81 Mar 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 906.64 Apr 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 892.47 May 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 878.31 Jun 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 864.14 Jul 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 849.98 Aug 11 $ 2,500.50 $ 8,167.00 $ 5,666.50 $ 835.81 Sep 11 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 821.64 Oct 11 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 807.48 Nov 11 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 793.31 Dec 11 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 779.14 Jan 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 764.98 Feb 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 750.81 Mar 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 736.65 Apr 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 722.48 May 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 708.31 Jun 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 694.15 Jul 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 679.98 Aug 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 665.81 Sep 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 651.65 Oct 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 637.48 Nov 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 623.32 Dec 12 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 609.15 Jan 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 594.98 Feb 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 580.82 Mar 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 566.65 Apr 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 552.48 May 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 538.32 Jun 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 524.15 Jul 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 509.99 Aug 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 495.82 Sep 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 481.65 Oct 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 467.49 Month Amount Paid (Inactive) Total Owed (Football Degenerative) Unpaid Amount Interest on Unpaid Amount (3% Simple) Nov 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 453.32 Dec 13 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 439.15 Jan 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 424.99 Feb 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 410.82 Mar 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 396.66 Apr 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 382.49 May 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 368.32 Jun 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 354.16 Jul 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 339.99 Aug 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 325.82 Sep 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 311.66 Oct 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 297.49 Nov 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 283.33 Dec 14 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 269.16 Jan 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 254.99 Feb 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 240.83 Mar 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 226.66 Apr 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 212.49 May 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 198.33 Jun 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 184.16 Jul 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 170.00 Aug 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 155.83 Sep 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 141.66 Oct 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 127.50 Nov 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 113.33 Dec 15 $ 3,333.50 $ 9,000.00 $ 5,666.50 $ 99.16 Jan 16 $ 4,166.50 $ 10,250.00 $ 6,083.50 $ 91.25 Feb 16 $ 4,166.50 $ 10,250.00 $ 6,083.50 $ 76.04 Mar 16 $ 4,166.50 $ 10,250.00 $ 6,083.50 $ 60.84 Apr 16 $ 4,166.50 $ 10,250.00 $ 6,083.50 $ 45.63 May 16 $ 4,166.50 $ 10,250.00 $ 6,083.50 $ 30.42 Jun 16 $ 4,166.50 $ 10,250.00 $ 6,083.50 $ 15.21 $ 619,337.00 $ 393,490.50 $ 32,292.61 TOTALS $ 225,846.50 2
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