CompSource Oklahoma et al v. BNY Mellon, N.A. et al, No. 6:2008cv00469 - Document 168 (E.D. Okla. 2010)
Court Description: OPINION AND ORDER by Mag. Judge Kimberly E. West DENYING (Docket Entry No. 98 ) Defendant BNY Mellon, N.A.'s Motion for Summary Judgment. (neh, Deputy Clerk)
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CompSource Oklahoma et al v. BNY Mellon, N.A. et al Doc. 168 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF OKLAHOMA COMPSOURCE OKLAHOMA; and BOARD OF TRUSTEES OF THE ELECTRICAL WORKERS LOCAL NO. 26 PENSION TRUST FUND, in its capacity as a fiduciary of the Electrical Workers Local No. 26 Pension Trust Fund, on behalf of themselves all others similarly situated, AUG 02 2010 WILLIAM B. GUTH~IE CI¥rk. U.S. District Court By Deputy tiel'\( Plaintiffs, v. Case No. CIV-08-469-KEW BNY MELLON, N.A. and THE BANK OF NEW YORK MELLON, Defendants. OPINION AND ORDER This matter comes before the Court on Defendant BNY Mellon, N.A.'s Motion for Summary Judgment Based on Plaintiff's Lack of Capacity to Sue in Federal Court (Docket Entry #98).1 Briefing is completed on the issues raised in this Motion, including the filing of supplemental briefs with leave of court. Upon review of the filings of the parties, this Court renders this ruling. Plaintiff CompSource Oklahoma ("CompSource") is a creature of statute, established by Okla. Stat. tit. 85 § 131. The specific 1 Subsequent to the filing of the subject Motion, Plaintiff filed an Amended Complaint, adding an additional plaintiff and defendant as well as new claims. The content of the Amended Complaint does not materially affect the relevancy of the single legal issue raised in the Motion, thereby making the refiling of the Motion unnecessary. Dockets.Justia.com purpose for its formation was for insuring employers against liability for compensation under Sections 131 through 151 of this title, and for assuring for the persons entitled thereto compensation provided by the workers' compensation law, and for the further purpose of insuring persons, firms and corporations against loss, expense or liability by reason of bodily injury, death by accident, occupational disability, or occupational disease suffered by employees, for which the insured may be liable or have assumed liability. Okla. Stat. tit. 85 § 131. The source for CompSource's funding consists of "all premiums received and paid into said fund for insurance issued, all property and securities acquired by and through the use of monies belonging to the fund and all interest earned upon monies belonging to the fund and deposited or invested as herein provided." tit. 85 § Okla. Stat. 131(a). CompSource's President and Chief Executive Officer is "vested with full power, authority and jurisdiction over CompSource . " The President and CEO is authorized to perform any duties which are necessary or convenient in the exercise of any power, authority, or jurisdiction over the fund in the administration thereof, or in connection with the insurance business to be carried on by him or her under ht provisions of Sections 131 through 151 of this title as fully and completely as a governing body of a private insurance carrier might or could do . Okla. Stat. tit. 85 In regard to § 132. conducting the business of CompSource, the statute empowers the President and Chief Executive Officer with the "full power and authority to manage and conduct all business and 2 affairs relating to CompSource Oklahoma" including the ability to [s]ue and be sued in all the courts of the state, in all actions arising out of any act, deed, matter or things made, omitted, entered into, done or suffered in connection with CompSource Oklahoma, and administer, manage, or conduct all the business and affairs relating thereto. Okla. Stat. tit. 85 § 133(1). Despite the extensive rhetorical ramblings contained in the does briefs, the issue presented is relatively simple: § 133(1) statutorily convey upon CompSource the ability to sue and be sued in a federal court located in the State of Oklahoma? benefit of legal precedent precisely on point Without the from either an Oklahoma state court or a federal court interpreting this section, this Court concludes CompSource possesses the ability to maintain this action. Defendant contends the Supreme Court of Oklahoma has provided a clear pronouncement as to the meaning of the "sue or be sued" phrase in § 133 (1) . Oklahoma Corp. Com'n, In the case of 170 P.3d 1024 State (Okla. ex reI. 2007), Wright v. the Oklahoma Supreme Court set forth the indisputable statement that "the State Insurance Fund (CompSource Oklahoma) is an entity that possesses statutory authority to sue and be sued in state courts," citing the case of State ex reI. State Ins. (Okla. 2003). Fund v. JOA, Inc., 78 P.3d 534 The matter before the Court was whether similar authoritative language was utilized in establishing the Indemnity Fund in connection with reimbursing 3 expenses related to rehabilitating polluted petroleum storage tank sites. of § 133(1) manner in The language was cited by analogy in an attempt to identify the which the Oklahoma legislature might authority to "sue or be sued" in an Oklahoma court. confer such Capacity to proceed in federal court in Oklahoma was not an issue in the case. Similarly, the decision in the JOA case cited in Wright is neither surprising nor inconsistent with a clear reading of the statute, given the issue presented to the Oklahoma Supreme Court. The Court was faced with the issue of whether the predecessor to CompSource, the State Insurance Fund, possessed sovereign immunity under the Governmental Tort Claims Act. concluded the statutory language of § The Oklahoma Supreme Court 133(1) to "sue or be sued" made "a specific class of legal controversies cognizable at law" "in state courts where those actions are not barred by sovereign immunity." Id. at 537. Again, the controversy at issue emanated from a state court action. The fact these act ions interpreted § 133 (l) to permit an action by or against CompSource or its predecessor in state court does not preclude an action by or against CompSource in federal court in Oklahoma, since that particular circumstance was before the Oklahoma Supreme Court. Indeed, absent a certification of the issue Supreme to it, the Oklahoma Court would likely not be provided the opportunity to rule upon the capacity of CompSource to proceed in an Oklahoma federal court. 4 By citing case authority on statutory parties appear to find the language of § construction, both 133(1) to be ambiguous. This Court does not find the language to be subject to mUltiple interpretations, thus rendering reliance statutory interpretation unnecessary. upon the rules of Jobe v. State ex reI. Dept. of Public Safety, 2010 WL 2584068, 3 (Okla.) ("If a statute is plain and unambiguous, it will not be subjected to judicial construction, but will receive the effect its language dictates."). The language employed by the Oklahoma legislature is all encompassing, including "all" of the courts of the state, which would include both state and federal courts. be consistent with This interpretation and use of language would the intent and purpose of the statutes establishing CompSource and its mission - to insure the payment of worker's compensation claims and protect entrusted to it for that purpose. and invest the funds In order to protect the funds, CompSource must be empowered to intervene, pursue litigation, or defend its capaci ty, interests. that duty and By specific mission does statutory not end designation at the of federal courthouse door but continues wherever necessary in all of the courts within the geographic confines of the State of Oklahoma. As a result, CompSource will be permitted to prosecute this action. IT IS THEREFORE ORDERED that Defendant BNY Mellon, N.A.' s Motion for Summary Judgment Based on Plaintiff's Lack of Capacity to Sue in Federal Court (Docket Entry #98) is hereby DENIED. 5 IT IS SO ORDERED this 2f1..£ day of August, 2010. JUDGE 6
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