Summary of DSRA’s Litigation Against the PBGC

     Updated Saturday, 9 September 2020
      In September 2009, the DSRA sued the PBGC in Federal District Court in Detroit to challenge the PBGC’s then-recent termination of the Delphi Salaried Pension Plan.  The PBGC terminated the plan by simple agreement with Delphi, rather than through a court adjudication as required by the Employee Retirement Income Security Act (ERISA).
      In its lawsuit, the DSRA asserted that the termination: (1) violated ERISA and constitutional due process because it was accomplished without a court adjudication; and (2) is substantively insupportable because the PBGC had not satisfied the criteria for terminations that ERISA establishes, and instead ordered the Plan terminated to comply with the preference of then-President Obama's ad hoc Auto Task Force created under the U.S. Treasury Department.  For relief, the DSRA requested that the retirees be put in the position we would have been in had the termination not occurred, so that, at a minimum, the PBGC would now run the Plan and pay benefits as if the Plan had never been terminated.
      The DSRA tried for nearly a decade to just get facts from the government during the discovery phase of the lawsuit.  The process was fraught with delays caused by the PBGC and U.S. Treasury that very nearly resulted in both being sanctioned.  In March of 2019, the federal court in Detroit granted summary judgment to the PBGC, dismissing the DSRA’s claims.  The DSRA then appealed to the U.S. Sixth Circuit Court of Appeals, which upheld the District Court’s ruling on September 1, 2020.  DSRA continues to believe the PBGC’s actions were unlawful, and we are now considering next steps.

U.S. Treasury Ordered to Provide Documents

U.S. District Court, District of Columbia
  On October 15, 2018, Judge Emmet G. Sullivan Ordered U.S. Treasury to produce by October 24, 2018, at 12:00 PM, all but one of the remaining documents related to the Delphi salaried retirees' case for restoration of their pensions.  Each document to be provided with a justification sheet explaining why the document does not contain evidence that may be reasonably relevant to the claims in this case. 
U.S. Treasury has repeatedly taken action in court to avoid compliance with the Judge's previous Order and avoid production of these documents.

Motions for Summary Judgment filed September 21, 2018

IN THE UNITED STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION
Case No. 2:09-cv-13616, Dennis Black, et al., Plaintiffs,
v. Pension Benefit Guaranty Corporation, Defendant:

SIMULTANEOUS DISPOSITIVE MOTIONS FILED SEPTEMBER 21, 2018

Updated 11/20/2018
As directed from the Status Conference held Tuesday, June 5, 2018, and delayed one week by agreement, Motions for Summary Judgment have been filed by both parties on Friday, September 21, 2018.  Opposition filings were submitted October 19, and Replies were submitted by both parties on November 16, 2018.
Additionally, Judge Tarnow has now scheduled a Hearing to be held on Wednesday, March 6, 2019, at 2:30 PM in Detroit.

Status Conference Held

IN THE UNITED STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION
Case No. 2:09-cv-13616, Dennis Black, et al., Plaintiffs,
v. Pension Benefit Guaranty Corporation, Defendant:

STATUS CONFERENCE HELD JUNE 5, 2018

Update 26 June 2018:  Status Conference was held on Tuesday, June 5, 2018:  Delphi salaried retirees and the PBGC are moving towards simultaneous filings for Summary Judgment as directed by the court.