On April 13, 2016, Plaintiffs Fredric Guenther and Walton Fujimoto filed suit in the above-entitled case against BP Retirement Accumulation Plan, BP Corporation North America Inc. and BP Corporation North America, Inc. (“BP”). Plaintiff Leslie Owen later joined as a plaintiff. The primary issue was whether BP violated the Employee Retirement Income Security Act (ERISA) when it converted its defined benefit pension plan called the BP America Retirement Plan (“ARP”) from a final average pay formula to a cash balance formula plan called the BP Retirement Accumulation Plan (“RAP”). On March 28, 2024, after a 14-day trial, the Court found that BP violated ERISA and ruled that Plaintiffs are entitled to equitable relief under Section 502(a)(3) of ERISA, 29 U.S.C. § 1132(a)(3).
If you think you may qualify as a class member or as an heir or representative of the estate of a deceased class member, please fill out the online form below:
Frequently Asked Questions (FAQs)
This case is a class action. The Court certified all three Plaintiffs as representatives of a class and certified their attorneys as Class Counsel. The Court found the class was a “mandatory class,” meaning that persons who qualify as class members are automatically included in the class. Mandatory class members cannot opt out of the class. The court will determine whether BP underpaid plan participants’ retirement benefits. If so, the Court will order that BP pay additional benefits; you do not need to sign-up or do anything else to be eligible for potential enhancement of retirement benefits.
Fredric Guenther, Walton Fujimoto and Leslie Owen are the class representatives. At great personal sacrifice, they have worked closely with Class Counsel over more than seven years to successfully prosecute this case through trial on behalf of all class members. They continue to work with Class Counsel as we enter the remedy phase, post-trial motions and possible appeals.
Class counsel comes from two law firms:
- Merrick, Hofstedt, and Lindsey
- James, Vernon, & Weeks
These firms teamed up eight years ago to prosecute the case on behalf of the Class Representatives and class members. The lead attorneys are Peter Steilberg, Philip Meade and Rossi Maddelena of the firm Merrick Hofstedt and Lindsey, P.S., and Susan Weeks and Leander James of the firm James, Vernon & Weeks P.A. Their combined legal team includes numerous associate attorneys, paralegals, and legal secretaries, and staff who have helped to successfully prosecute the case on behalf of all class members.
The Court defined the class with the following criteria:
- You must have been a participant in the BP America Retirement Plan (ARP) as of December 31, 1988.
- You must have been under 50 years old as of December 31, 1988 (born after December 31)
- You must have remained a participant in the plan, which was renamed the BP Retirement Accumulation Plan January 1, 1989.
- The benefits provided (or to be provided) to you under the Retirement Accumulation Plan must be less than what you would have received under the final average earnings formula the Plan used before January 1, 1989.
In other words, if you were born after December 31; were a participant in the BP America Retirement Plan on December 31, 1988; continued in the plan, which was renamed the BP Retirement Accumulation Plan, after that date, and you earned less under the new plan, you are automatically a class member.
Whether you earned less under the new plan will depend on the Court’s decision about how to calculate benefits under the old plan (the ARP). The Court will decide what changes in the law and changes made to the Plan over many years should be considered in calculating the benefits under the old plan. You do not need to do anything to preserve your status as a potential class member, or to have your account analyzed to determine if you are due additional money. If money is due you, the Court will determine how you should be notified, and how the payment will be made.
Yes. The Court found, “BP has presented no evidence to this Court of a binding release that specifically releases any Plaintiff’s or Class member’s ERISA § 502(a)(3) claim.”
On March 28, 2024, after a 14-day trial, the Court entered its Findings of Fact Conclusions of Law finding BP is liable to class members. The Court wrote, “Plaintiffs have ‘show[n] by clear and convincing evidence that [BP] committed fraud or similarly inequitable conduct . . .” That ended the liability phase. The case then entered the remedy phase with the Court ordering each side to brief the remedy for class members. The close of that briefing is May 15, 2024. The Court’s decision on the remedy will tell us how class members will be compensated. There is no deadline for the court to rule on the remedy; however, we expect a ruling before the end of the year.
If you think you may qualify as a class member or as an heir of a deceased class member, you can fill out the online form by clicking here. We are providing this form because BP may have gaps in its records. The information you provide may help to fill in those gaps. We have contact information for many potential class members, but some contact information is missing. This information is helpful to ensure we have correct contact information for you and to obtain information from you, but as stated above, you do not need to do anything to be eligible for additional retirement benefits if the court determines you have not received benefits you are entitled to receive under the court’s orders.
Given the class demographics and time that has passed, there will be class members who have unfortunately passed away before any money is paid out. In some cases, the class member and one or more of their heirs have passed away. The death of a class member or their heirs does not foreclose recovery.
If you are an interested person such as a family member, heir or potential heir, you should consult with an estate planning attorney in the state where the class member died. In cases where the class member and one or more of their heirs have died, you should consult with an attorney in each state where the death occurred. Estate planning is beyond the scope of Class Counsel’s representation.
Generally, and subject to the law of the applicable state, there must be a person legally entitled to receive funds the class member would have received if they were alive. In most states, this court-appointed person is called a “Personal Representative,” “Executor,” or “Executrix.” This representative has the legal rights, powers and obligations that the deceased person would have. Thus, they can receive money that would have otherwise been paid to the deceased person and are obligated to distribute it according to the deceased person’s will, or where there is no will, under the laws of intestate succession. Where the class member and their heirs have passed away, there needs to be a court-appointed person for each person who passed who can receive any money distributed.
No, there is no settlement at this time. BP has made no settlement offer and has indicated it intends to appeal the Court’s decision. A settlement can occur at any stage of a case, and it is possible BP may change its mind and come to the negotiation table. However, BP has given us no indication it is entertaining settlement as an option.
BP indicated at trial and since that it will appeal if it loses. BP lost at trial and therefore will likely appeal. However, no appeal can be made until there is a final judgment. The final judgment will not come until the Court rules on the remedy. Before an appeal, BP also has the option to ask the Court to reconsider its rulings.
We do not know when the Court will rule on the remedy, but we think it will likely be within the next six months. BP may then file a motion for reconsideration and/or appeal. Once the judgment is final, either party will have the right to appeal the Court’s decisions to the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”). In our experience, the Fifth Circuit takes about six to eight months to process an appeal. From there, the case could come back down to Judge Hanks, or a party may ask the Supreme Court of the United States to accept an appeal. If the latter occurs, the Supreme Court would then decide whether it will take the appeal, a process that takes approximately six months.
We do not know. There is much uncertainty regarding when the case will end and even more uncertainty when any money will be paid to class members. We do not currently have sufficient information to estimate a time frame; however, our legal team is prepared and committed to see the case through to the end no matter how long it takes. We will update you as we know more.