Recupero v. NE Telephone

Case Date: 07/07/1997
Court: United States Court of Appeals
Docket No: 96-2265



UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
____________________

No. 96-2265

CHERYL T. RECUPERO,

Plaintiff - Appellant,

v.

NEW ENGLAND TELEPHONE AND
TELEGRAPH COMPANY, ET AL.,

Defendants - Appellees.

____________________

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Robert B. Collings, U.S. Magistrate Judge]

____________________

Before

Bownes and Cyr, Senior Circuit Judges,

and Keeton,* District Judge.

_____________________

Lynn Thomas Johnson, with whom Blaine J. DeFreitas and Saab
Law Firm were on brief for appellant.
Lisa M. Birkdale, New England Telephone and Telegraph Company,
for appellees.

____________________

July 7, 1997
____________________

* Of the District of Massachusetts, sitting by designation.

KEETON, District Judge. This appeal presents issues

regarding the scope of jurisdiction of federal courts over claims

for benefits under an employee benefits plan that is subject to

regulation under the Employee Retirement Income Security Act

(ERISA). In particular, we must decide what standards apply to

judicial review of the decisions of the out-of-court decisionmakers

in this case.

Without doubt, in the circumstances of this case, as the

parties agree, the district court had jurisdiction for judicial

review of the out-of-court decisions, under 29 U.S.C.

SS 1132(a)(1)(B) and 1132(c), for at least one purpose: to

determine whether those decisions should be set aside as arbitrary

and capricious. In turn, this court has jurisdiction, under 28

U.S.C. SS 636(c)(3) and 1291, to consider plaintiff-appellant's

appeal from the district court's judgment for defendants.

In cases involving this kind of judicial review,

ordinarily the appropriate judgment for a district court to order

is one or the other of two kinds. If the district court determines

that the out-of-court decisions were arbitrary and capricious, the

appropriate form of order is one remanding to the out-of-court

decisionmaker for further proceedings to decide whether the claim

or claims have merit. Otherwise, the usual form of order is a

final judgment affirming the decisions of the out-of-court

decisionmaker. In this case, however, appellees assert that "[t]he

only salient issue before the court is whether the determination of

the Committee to deny Recupero accident benefits was arbitrary and
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capricious." (Appellee's Br. at 2.) Though acknowledging as a

general matter the possibility of a remand "to the Committee for

further consideration" (id.), in the end appellees request only a

recognition that "the Committee's reasonable decision must be

permitted to stand" and an order that the district court's summary

judgment for defendant "be affirmed." (Id. at 22.) Appellant,

also, seeks a final decision in this court. Thus, no party to the

appeal asks for remand to the out-of-court decisionmaker (or even

to the district court on conclusion of this appeal), except

possibly as an alternative request, not clearly argued in the

briefs and barely mentioned in oral argument apart from responses

to questions from the court. Instead, the parties join in

contending that, if we conclude that the out-of-court decisions

were for some reason arbitrary and capricious, then we should

(1) decide this controversy finally, or order the district court to

do so, making any factual findings necessary to a decision on the

merits, or (2) decide that the claim is finally resolved on grounds

of some procedural bar, estoppel, or harmless error.

In these circumstances, this appeal presents a

fundamental question about the scope of jurisdiction of the

district court and this court. After stating relevant background

matter in Part I, we address this fundamental jurisdictional

question in Part II, concluding that the courts do not have plenary

jurisdiction to decide all questions bearing on the merits. In

Part III we turn to other issues, over which we do have

jurisdiction, and conclude that the judgment of the district court
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against plaintiff-appellant is to be affirmed, though without

approval of all details of the district court's reasoning.

I. Background

The incident that forms the basis for this civil action

and this appeal occurred on January 18, 1990, while the plaintiff-

appellant, Cheryl Recupero, was working for New England Telephone

and Telegraph Company ("NET") as a Service Representative. The

District Court recited, as an undisputed fact, that:

At 9:30 am on January 18, she left her
workstation on the sixth floor for the
purpose of going for coffee at a shop on
the ground floor. She entered an elevator
and was injured in a mishap while in the
elevator.
(Recupero v. New England Telephone & Telegraph Co., Civil Action

No. 94-12266-MLW, Memorandum and Order, Sept. 20, 1996 at 2.)

As a result of injuries sustained in this incident,

Recupero applied for benefits under the NET plan. (Id.) She was

granted benefits under the Sickness provision of the plan, but was

denied Accident benefits. (Id. at 3-4.)

The NET plan provides that an employee is:

[Q]ualified to receive [Accident
Disability] payments on account of
physical disability to work by reason of
accidental injury ...arising out of and in
the course of employment by the Company.

(Id. at 3)(emphasis added).

The plan further elaborates that:
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Accidental injuries shall be considered as
arising out of and in the course of
employment only where the injury has
resulted solely from accident during and
in direct connection with the performance
of duties to which the employee is
assigned...
(Id.)(emphasis added). The only limitation on the duration of

payment of Accident Disability Benefits, under the terms of the

plan, is that the employee remains unable to work. (Id. at 4 n.2.)

The plan does not explicitly define what "sickness" is in

the section providing for Sickness Disability Benefits, but does

state that "sickness shall include injury other than accidental

injury arising out of and in the course of employment by the

Company." (Id. at 4)(emphasis added). Sickness Disability

Benefits are subject to a duration limit of 52 weeks, under the

terms of the plan. (Id. at 4, n.2.) NET paid and Recupero accepted

52 weeks of Sickness Disability Benefits. (Id. at 3.)

The Benefits Office determined that Recupero was not

entitled to Accident Disability Benefits because her injuries did

not arise out of or occur in the course of her employment. (Id.)

Recupero appealed this decision to the Employee Benefits Committee

("EBC" or "Committee"), which denied her appeal by letter on

December 15, 1993, stating that "it was determined that there is

evidence that you were not eligible for Accident Benefits for the

incident report on January 18, 1990." (Id.) Recupero then filed

an identical appeal with the Employee Benefits Claim Review

Committee ("EBRC" or "Review Committee"), which also denied her

appeal, stating that "after consideration of all available

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information, including the information you provided, the [EBRC] has

determined that there is no reason to reverse the original decision

of the [EBC]." (Id. at 5.)

Recupero filed a civil action for judicial review in the

United States District Court for the District of Massachusetts.

The district court assigned the case to Magistrate Judge Collings,

under 28 U.S.C. S 636(c)(1) and Local Rules of the district.

In the district court, Recupero contended that: (1) the

EBC and the EBRC acted arbitrarily and capriciously by erroneously

interpreting the provisions of the plan; (2) the Committees' denial

of her claim lacked good faith; and (3) the Committees gave her

inadequate notice of the denial. (Id. at 9.)

The district court decided the case by ruling on cross

motions for summary judgment.

The court initially noted the appropriate standard of

review, stating that the arbitrary and capricious standard applies

where the benefit plan vests the fiduciary with the discretionary

authority to determine benefits eligibility and to construe plan

provisions. (Id.) The court then made the following

determination:

[T]he NET plan enumerates in sufficient
detail the broad discretionary powers of
both the EBC and the EBCRC necessary for
application of the deferential standard of
review. Thus, the rulings of the NET
committees will not be disturbed unless
the denials were arbitrary and capricious.
(Id. at 8.)

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The district court next examined in detail the various

claims and contentions. Recupero, using the word "Committee" to

refer to either or both of the Benefits Committee and the Review

Committee, stated as her first argument that the Committee

improperly categorized her injury as "off-duty" when it should have

been treated as an "on-duty" injury. (Id. at 9.) This argument

concluded with the assertion that it was not "rational" to classify

incidents that occur during breaks, taken at a time required or

directed by the employer, as being "off-duty" incidents. (Id.)

The district court concluded (contrary to Recupero's

contention) that the EBC and EBRC had not been arbitrary and

capricious in interpreting the plan as defining break-time as "off-

duty" time. The court stated:

Recupero does not point to any language in
the plan which indicates that the
committee interpretation is not rational.
Nor does she point to language which
suggests that the scope of the Accident
Benefits Provision should be given a
broader reading and be applied when the
injury occurs as a result of an otherwise
non-job-related activity which is
marginally motivated by a job-related
exigency. On the contrary, and the
defendants point out, the plain language
of the plan militates for a far narrower
reading.
(Id. at 10-11.)

The court below also emphasized that the definition of an

injury that would qualify an employee for accident benefits had

words of limitation, such as "only," "solely," and "in direct

connection." (Id. at 11.) These words, the court reasoned, are
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plain and unambiguous, and require that for an employee "to be

eligible for accident benefits, the activity in which the employee

is engaged at the time of injury must be a duty or responsibility

required by her job." (Id.) Thus, the court concluded:

It is an undisputed fact that Recupero was
taking her break and going to get coffee
at the time she sustained her injuries.
Breaks fall outside the purview of the
plain language of the Accident Benefit
Provisions. Therefore, given that
Recupero was on break at the time, her
injury cannot be said to be a direct and
sole result of her job responsibilities.
(Id.)

Because, as the court below viewed the matter, the

plaintiff had failed to raise an issue of material fact, the court

ruled that the Committees' interpretation was consistent with the

language of the plan, and that the Committees did not act

arbitrarily or capriciously in denying Recupero's claim. (Id. at

12.)

Recupero's second contention below was that the

Committees acted with a lack of good faith toward her because, she

claimed, the EBC and the EBRC either never met to review her claim

or failed to have a quorum present when they did meet. (Id.) The

court below determined that Recupero's claim of lack of good faith

was without evidentiary support in the record. (Id. at 13.)

The final issue decided by the court below was whether

the notices of denial sent to Recupero by the Committees conformed

with the statutory requirements of ERISA. (Id.) Recupero

contended that the failure of the Committees to include specific

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reasons for denying her claim, or to cite to any specific plan

provisions upon which the denial was based, precluded her from

obtaining the information that was necessary for her to pursue her

claim. (Id. at 14.)

On the issue of notice, the court below concluded that:

The denial letters sent to Recupero failed
to conform strictly to the requirements
set forth in ERISA, 29 U.S.C. S 33, and
were insufficient as a matter of law.
Nonetheless, as a practical matter, the
letters were substantially sufficient to
inform Recupero that her claim had been
denied.
(Id.)

Having so concluded, the lower court then considered

whether any remedy was available to Recupero for NET's failure to

conform to the requirements of 29 U.S.C. S 33. (Id.) The court

concluded that a remand to the EBC or the EBRC would be a useless

formality because the evidence taken as a whole indicated that the

denial of benefits was correct. (Id. at 15.)

On this reasoning, the district court granted summary

judgment for NET on all claims. Recupero appealed. No cross

appeal was filed.

II. The Scope of Jurisdiction in a Case
Involving Judicial Review of Out-of-Court Decisions

A. Circumstances of the Present Appeal

As already noted, the district court had, and this court

has, authority for judicial review of the out-of-court decisions

that preceded commencement of this civil action in the district

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court. 29 U.S.C. SS 1132(a)(1)(B) and 1132(c); 28 U.S.C.

SS 636(c)(3) and 1291. Also, Recupero does not dispute that the

judicial review is to be "de novo" and that she has the burden, in

the circumstances of this case, of showing that the denial of her

claim violated the "arbitrary and capricious" standard.

(Appellant's Br. at 9, citing Firestone Tire and Rubber, Inc. v.

Bruch, 489 U.S. 101, 113 (1989); Pagan v. NYNEX, 52 F.3d 438, 442

(2d Cir. 1995) (judicial review of decision by pension plan

administrator to deny long-term disability benefits, where pension

provisions gave the plan administrator broad discretion to

determine eligibility issues and no material fact was genuinely in

dispute; "we are not free to substitute our judgment for that of

the NYNEX Committee as if we were considering the issue of

eligibility anew," and as if free to upset a reasonable

interpretation; court reviews only the decision of the NYNEX

Committee and, even if plan provisions were drafted by NYNEX, which

is an entity different from the NYNEX Committee, and were

ambiguous, the rule contra proferentum is inapplicable); Diaz v.

Seafarers Union, 13 F.3d 454, 456-57 (1st Cir. 1994) (trustees'

decision denying retired seaman's claim for higher monthly pension

benefit under Seafarers International Union's Pension Plan did not

improperly apply the trustee rules about "break in service" that

were promulgated pursuant to powers that the Plan instrument

granted to the trustees); Stuart v. Metropolitan Life Ins. Co., 664

F. Supp. 619, 622-23 (D. Me. 1987) (declining to overturn

recoupment from worker, of sum equal to lump-sum Social Security
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payments, by insurer under Group Insurance Policy taken out by

Plan)).

Though the contentions of the parties about the scope of

the jurisdiction of the district court and this court differ, all

parties to this appeal urge us to take an exceedingly expansive

view of the scope of the courts' jurisdiction in reviewing ERISA

benefit determinations. Each party to this appeal, at least in the

alternative, urges us to hold that the district court had

jurisdiction not only to apply the arbitrary and capricious

standard of review to at least some aspects of the out-of-court

decisions, but also to make findings on material and genuinely

disputed factual issues that allegedly should have been decided and

were not. In essence, we are asked to decide on the merits, or

direct the district court to decide on the merits, every material

factual issue as to which the out-of-court decisions under judicial

review are challenged. We are asked to exercise plenary

jurisdiction of the most expansive form.

We acknowledge that statements made about "de novo

review" in some passages from authoritative sources, standing

alone, may seem to support the parties' expansive jurisdictional

contentions. We conclude, however, that a close examination of the

entire array of relevant authority discloses that contentions of

the parties in this respect flow from a misreading of Firestone,

and a resulting misunderstanding of that case and its sequels.

Such a misreading was anticipated by Justice (then Chief Judge)

Breyer's opinion for the First Circuit in Diaz, 13 F.3d at 458. In
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that case an argument was made that a Plan amendment, granting

broad discretion to trustees, showed that the previous provisions

of the Plan did not grant discretion that broad. The Diaz opinion

responds that the amendment "merely made express a power ...

plainly implied all along," perhaps because the trustees "wanted to

play it safe in light of Firestone and the possibility that lower

courts would later misread it." Id.

The parties' expansive views about jurisdiction derive,

at least to some extent, from their reading of what Firestone said

about "de novo review." In that case, the Court declared:

... Consistent with established principles
of trust law, we hold that a denial of
benefits challenged under S 1132(a)(1)(B)
is to be reviewed under a de novo standard
unless the benefit plan gives the
administrator or fiduciary discretionary
authority to determine eligibility for
benefits or to construe the terms of the
plan.

489 U.S. at 115 (emphasis added).

In several significant respects, the case before us in

this appeal differs from Firestone. Nevertheless, in this case,

one of the questions we must address may be stated in a generalized

way in exactly the same phrase as that used by Justice O'Connor in

describing the first of two questions before the Court in that

case: "First, we address the appropriate standard of judicial

review of benefit determinations by fiduciaries or plan

administrators under ERISA." 489 U.S. at 105.

The plans involved in Firestone were Firestone's three

"pension and welfare benefit plans for its employees: a
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termination pay plan, a retirement plan, and a stock purchase

plan." Id. "All three of the plans were ... governed (albeit in

different ways) by ERISA." Id. In our case, also, the NET plan is

governed by ERISA, but in some respects by the same ERISA

provisions that applied to the Firestone plans and in other

respects by different ERISA provisions. One difference is that the

Firestone plans were "welfare and pension plans," and the NET plan

is not. Other differences emerge as we apply the reasoning of the

Court in Firestone to the present case.

Firestone determines that:

[f]or purposes of actions under
S 1132(a)(1)(B), the de novo standard of
review applies regardless of whether the
plan at issue is funded or unfunded and
regardless of whether the administrator or
fiduciary is operating under a possible or
actual conflict of interest.

489 U.S. at 115. The role of the district court in applying the

"de novo standard" is affected, however, by the terms of the

particular plan at issue. For example, "if a benefit plan gives

discretion to an administrator or fiduciary who is operating under

a conflict of interest that conflict must be weighed as a 'facto[r]

in determining whether there is an abuse of discretion.'

Restatement (Second) of Trusts S 187, Comment d (1959)." Id.

In this case, no party challenges the proposition that

NET plan documents did give some discretion, subject to judicial

review, to the EBC and EBRC. Nor does any party question that the

Committees were acting on behalf of an entity that was, within the

meaning of the statutory phrase, an "administrator or fiduciary."
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Also, we do not understand the briefs of the parties as challenging

the proposition that the Committees had some responsibility, and

associated authority, with respect to "constru[ing] the terms of

the plan," as that phrase is used in Firestone, 489 U.S. at 115.

In any event, if this proposition is challenged, we conclude that

the challenge is without merit.

As previously discussed, when the benefit plan gives the

administrator or fiduciary discretion to determine benefit

eligibility or construe plan terms, Firestone and its progeny

mandate a deferential "arbitrary and capricious" standard of

judicial review. Id. Thus, a deferential "arbitrary and

capricious" standard of review applies, even though the review is

also to be "de novo review" to assure compliance of the out-of-

court decisionmakers with standards of conduct analogous to those

applied to trustees under judicially developed law (which Firestone

adopts to fill the gap left because "ERISA does not set the

appropriate standard of review for actions under S 1132(a)(1)(B)

challenging benefit eligibility determinations."). 489 U.S. at

109.

Because of the combination of similarities and

differences between the circumstances in Firestone and the

circumstances before us in this case with respect to the array of

different plan provisions and with respect to which among ERISA's

various provisions apply, however, we must be especially observant

of the extent to which the Firestone "de novo standard of judicial

review" requires de novo determinations by the reviewing court and
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the extent to which, instead, it requires deference to an out-of-

court decision that is not "arbitrary and capricious."

An example of the kind of problems we must consider is

the determination of the meaning of provisions of the NET plan

regarding "eligibility for benefits" of various types -- in this

case, "Sickness Disability Benefits" and "Accident Disability

Benefits." Determining the meaning of such plan provisions

ordinarily depends solely on deciding an issue of law with respect

to manifested meaning of relevant provisions of the plan. A

reviewing court, at least in the absence of plan provisions

explicitly declaring otherwise, has authority to decide that a

committee interpretation that varies from an unambiguously

manifested meaning is arbitrary and capricious, and must be

disregarded. If, instead, the reviewing court determines that the

plan provisions are ambiguous or otherwise unclear, in some respect

material to the outcome of the case, this determination of lack of

clarity does not necessarily lead to treating the issue of meaning

as one for decision by findings of fact in the district court

(either by a jury or by the district judge). Instead, interpretive

issues of this kind may be decided by the court as matters of law

are decided, or they may be partly decided in court and partly on

remand to the out-of-court decisionmakers, or applicable law may

require some other allocation of decisionmaking functions. We say

more on this subject in Parts II.B and II.C of this opinion, below.

Summarizing, we conclude that in view of the Supreme

Court's pronouncement in Firestone, it is no longer in dispute that
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federal courts review some ERISA claims de novo. Even when de novo

review is appropriate, however, it is often subject to some

limitations. Thus, the phrase "de novo review," as used in the

context of judicial review of out-of-court decisions of ERISA-

regulated plan administrators or fiduciaries does not mean that a

district court has "plenary" jurisdiction to decide on the merits,

anew, a benefits claim.

We use the term "plenary" to describe jurisdiction of the

court to disregard completely an "out-of-court decision" the court

is reviewing and itself (with or without participation by a jury)

decide anew all questions of fact bearing on the merits of the

benefits claim.

B. Contrasting Court Roles Because of Limits on Jurisdiction

1. Limits Incident to Fiduciary Discretion
Under Terms of a Benefit Plan

With respect specifically to an issue regarding

eligibility of a claimant for benefits, precedents recognize that

district courts do not have expansive plenary jurisdiction to

decide the merits of a claim anew if "the benefit plan gives the

administrator or fiduciary discretionary authority to determine

eligibility for benefits or to construe the terms of the plan."

Bellino v. Schlumberger Technologies, 944 F.2d 26, 29 (1st Cir.

1991) (quoting Firestone, 489 U.S. at 115); see also Martin v.

Bissonette , 1997 WL 280602, *12 (1st Cir. May 29, 1997) (remarking,

in the context of judicial review of state court determinations

bearing upon habeas writs, "we find a myriad of situations in which

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federal courts review others' decisions with a thumb on the scale

....[,] [t]he most conspicuous ... [being] judicial review of

agency adjudications"). Thus, if an ERISA out-of-court

decisionmaker is given some discretion, the court reviews at least

some (if not all) aspects of the out-of-court decision only to

determine whether that decision was arbitrary and capricious. This

key point expressed in Bellino is entirely consistent with many

earlier and later First Circuit decisions that recognize the

authority of the court to be less deferential, or not deferential

at all, of out-of-court decisions by fiduciaries to whom a benefit

plan did not grant discretionary authority to decide the matter at

issue. Smart v. Gillette Co. Long-Term Disability Plan, 70 F.3d

173, 181 (1st Cir. 1995) ("In ERISA cases ... court should

scrutinize an ostensible waiver with care in order to ensure that

it reflects the purposeful relinquishment of an employee's

rights."); Hughes v. Boston Mut. Life Ins. Co., 26 F.3d 264, 267

(1st Cir. 1994) ("Where, as here, the administrator of an ERISA-

regulated plan does not allege that it has discretion under the

plan to interpret the terms of the insurance policy, judicial

review of a denial of benefits entails no deference to the

administrator's explanation of the plan ...."); Diaz, 13 F.3d at

456-58 (arbitrary and capricious standard of review applied to

trustee rules promulgated pursuant to "broad, discretionary

authority" granted to the trustee in the trust instrument);

Rodriguez-Abreu v. Chase Manhattan Bank, N.A., 986 F.2d 580, 583-84

(1st Cir. 1993) (de novo standard properly applied where "the
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relevant plan document did not grant discretionary authority to the

Plan Administrator and the Named Fiduciaries did not expressly

delegate their discretionary authority to the Plan administrator");

Allen v. Adage, Inc., 967 F.2d 695, 697-98 (1st Cir. 1992) (where

nothing in the Plan indicates that another approach is to be used,

it is appropriate for a reviewing court to afford de novo review).

2. Jurisdictional Limits
in Federal Courts Generally

An inquiry that is in essence jurisdictional is an

appropriate early step toward full understanding of the meaning of

the constitutional, statutory, and decisional mandates regarding

the scope of the authority of federal courts in a case involving

judicial review of an out-of-court claims decision.

Article III courts and other federal courts are not

courts of general jurisdiction. See, e.g., Owen Equip. & Erection

Co. v. Kroger , 437 U.S. 365, 374 (1978). Even when some source of

subject-matter jurisdiction appears of record (by reason of

complete diversity of citizenship, for example, or the dependence

of a claim on some federal question), federal courts are not

automatically authorized to adjudicate every kind of related claim

a party wishes to have decided. Rather, except as to instances of

jurisdiction over claims of unconstitutionality of legislation,

limits on the scope of jurisdiction of federal courts (other than

the Supreme Court of the United States) are partly statutory.

E.g. , Kokkone n v. Guardian Life Ins. Co. of America, 511 U.S. 375,

377 (1994).

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A central characteristic of federal jurisdiction is that

it tends to be claim-based, and thus specific to claims, rather

than case-based, and thus general to an entire case if the court

has jurisdiction over any claim. See American Law Institute,

Federal Judicial Code Revision Project, Tentative Draft No. 1, 33-

34 (Apr. 8, 1997) (Commentary). The Reporter for this ALI Project,

Professor John B. Oakley, in an introductory Memorandum to the

Members of the Institute, identifies as an organizing principle

used from an early stage of the history of this ALI Project, the

observation that:

subject-matte r jurisdiction of the federal
district court operates on a 'claim-
specific' basis that is concealed and
confused by the 'action-specific' language
of the basic statutory grants of original
jurisdiction to the district courts.

Id. at xvii. He adds:

.... Although the basic statutes purport
to confer federal jurisdiction over
particular types of 'civil actions,'
'cases,' 'proceedings,' and the like, they
have been administered on a claim-specific
rather than action-specific basis, with
the law of supplemental jurisdiction
functioning in the background as the
mechanism for determining which claims
joined to a particular action that do not
directly involve the kinds of issues or
parties within the scope of Article III
are nonetheless within federal judicial
power because of their relationship to
other claims involving issues or parties
that fall within Article III's criteria.

Id. at xviii. We interpret "action," as used both in this passage

and in a passage of the F irestone opinion, quoted above, as meaning

"civil action," not "cause of action." Professor Oakley adds that
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these background themes are a part of the complex "structure of

federal jurisdiction," commonly recognized as involving

constitutiona l, statutory, and decisional "tiers" of authorization

and limitation. Id. at 36-45.

We conclude that a theme of claim-specific limitations on

the scope of federal judicial power extends also to a distinction

between plena ry jurisdiction, in a broad sense including authority

to decide anew on the merits, and a more confined type of

jurisdiction over a specific type of claim within the court's

jurisdiction. A district court's subject-matter jurisdiction over

a claim may be solely for judicial review of an out-of-court

decision on the merits of the claim. This kind of limitation is

primarily statutory in origin. It may be implicit, for example, in

a statutory authorization for judicial review over out-of-court

substantive decisions (of many different types) made by

governmental agencies, under provisions of the Administrative

Procedure Act, 5 U.S.C. S 706(2)(A). Also, this kind of limitation

may be implicit in statutory provisions for judicial review of

special kinds of out-of-court substantive decisions made by private

decisionmakers such as those acting under employee benefits plan,

making decisions reviewable in this case under ERISA, 29 U.S.C.

SS 1132(a)(1)(B) and 1132(c).

In a regime characterized in large part by limited

jurisdiction, a statutory authorization for judicial review of out-

of-court decisions does not imply authorization for a court to

expand its jurisdiction to a plenary authority to decide, itself,
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all genuinely disputable factual issues decisive of the merits of

claims. This point applies both to a court's acting on its own

initiative and to a court's acting upon a consensual request by the

parties that a court accept an expansion of its jurisdiction. We

say more about consensual requests in Part II.E, below.

Also, to understand fully a source of authority regarding

the scope of a court's jurisdiction when judicially reviewing an

out-of-court claims decision, one must take account of the

distinctive nature of a court's role in judicial review, in

contrast with the role of a court in other civil actions generally.

A civil action for judicial review of an out-of-court

decision is fundamentally different from a paradigm civil action

asserting tort, contract, or property claims, or even alleged

rights to equitable or declaratory relief. In cases of judicial

review, ordinarily no right to jury trial is involved, and no need

or authority exists to make factual findings of the kind regularly

made by a jury, or by the trial judge in a nonjury trial.

If a need exists for deciding disputable factual issues

in the course of judicial review of an out-of-court decision on the

merits of a benefits claim, typically that need is associated with

a dispute about the "record." We turn next to considering disputes

of this kind.

C. Deciding Disputes About the "Record"

1. The Contrast Between Disputes
About the "Record" and Disputes
About the "Merits"
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Deciding disputable factual issues about what is or is

not properly a part of the "record" for judicial review is

fundamentally different from deciding disputable factual issues

going to the merits of a benefits claim.

The out-of-court decision under judicial review in this

case was, or at least in ordinary circumstances should have been,

a decision on the merits. The standard of judicial review of that

decision, in whatever way it may be phrased and described, is to

some extent deferential in the sense that the reviewing court is

not to set aside a factual finding of historical fact for which the

record on which the decision was made contained adequate support.

Ordinarily the deference to a decision on the merits

extends also to deference to an evaluative inference on which the

decision on the merits depends, at least unless the inference is a

mixed-legal-factual inference. Just as appellate courts tend to

give somewhat less deference to a trial court's mixed-legal-factual

inference -- see, e.g., AIDS Action Comm. of Mass., Inc. v.

Massachusetts Bay Transp. Auth., 42 F.3d 1, 7 (1st Cir. 1994)

(appellate court accords significant deference to trial court's

factual determinations and most of its resolutions of mixed

fact/law issues, letting them stand unless they are clearly

erroneous, but engages in de novo review of trial court's

application of a First Amendment standard to the facts of the

particular case); In re Extradition of Howard, 996 F.2d 1320, 1328

(1st Cir. 1993) ("The standard of review applicable to mixed

questions usually depends upon where they fall along the degree-of-
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deference continuum; the more fact-dominated the question, the more

likely it is that the trier's resolution of it will be accepted

unless shown to be clearly erroneous.") -- so likewise a court

engaged in judicial review of an out-of-court decision may tend to

give less deference to an inference-based decision that appears

possibly to have been influenced by a mistake about the existence

or meaning of an applicable legal rule or about how the legal rule

applies in the particular instance. In applying such a less

deferential standard, however, a reviewing court is not authorized

to make, itself, a new decision replacing every factual finding of

the out-of-court decisionmaker that goes to the merits and is

challenged. The judicial review of the decision on the merits

continues to be to some extent deferential.

In contrast, the trial judge's decision of a dispute

about the record is typically not deferential.

A factual dispute about the record of an out-of-court

decision of a claim under an employee benefits plan may involve a

contention, by either party, that the "record" as produced by the

decisionmaking entity contains documents or descriptions of non-

documentary evidence not considered before the challenged decision

was made, or documents or descriptions of evidence not properly

considered (which one party or the other asks the trial court to

"strike" or otherwise treat as irrelevant to judicial review).

Obversely, the dispute may involve a contention that the record for

the out-of-court decision should have included, and did not,
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additional materials (which one party or the other asks the trial

court to rule must be taken into account).

If, after taking such a supplementation of the "record"

into account, the trial judge determines that, by reason of

departures from fair process, the challenged out-of-court decision

cannot be affirmed, one obvious possibility is an order of remand

for reconsideration by the committee or other entity that made the

procedurally flawed out-of-court decision.

That form of remedy fits. Concerning a court's

obligation generally, in framing relief, to fashion a remedy that

fits and does not overburden a party, see, e.g., California v.

Yamasaki , 442 U.S. 682, 702 (1979) (injunctive relief should be no

more burdensome to the defendant than necessary to provide complete

relief to the plaintiffs); E.E.O.C. v. Astra U.S.A., Inc., 94 F.3d

738, 746 (1st Cir. 1996) (same).

First, the remedy for the departure from fair process is

easily framed to fit within the authorized scope of judicial

review. Second, the nature of the remedy matches the nature of the

error. Moreover, if the error was solely an error of the committee

or other deciding entity, any other form of order is likely not to

fit because it tends to place an undeserved burden or disadvantage

on one party or the other.

We leave to be considered in Parts III.C and III.D of

this opinion a defense contention in this case that if the record

failed to contain evidence that would have supported plaintiff's
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claim, plaintiff failed to use her available opportunities to

proffer more evidence.

To complete an explanation of the contrast between

deciding disputes about the merits and deciding disputes about the

record, we must take account of legal authority bearing on who is

to decide a dispute about the record and by what procedures.

2. Who Decides?

As to who is to decide a dispute about the record, we

canvass three possibilities (and variations on each) that are

apparent in this case: (1) the out-of-court decisionmaker on

remand from the district court; (2) the court or courts where

judicial review occurs; and (3) a jury (or trial judge as finder of

fact in a nonjury proceeding), guided on the law by the trial

judge's rulings, those rulings being subject to correction on

appeal.

The first possibility (remand to the out-of-court

decisionmaker) may sometimes be appropriate, but is likely to

result in delay, and perhaps very extended delay and expense if the

dispute is not resolved to the satisfaction of all interested

parties, and promptly. That kind of delay is inconsistent with the

objective of providing workers and their dependents an inexpensive

and expeditious method of resolving disputes over benefits claimed

under an employee benefits plan. This is one of the multiple

objectives underlying ERISA. See, e.g., Quesinberry v. Life Ins.

Co. of North America, 987 F.2d 1017, 1023-1025 (4th Cir. 1993)
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(citing Perry v. Simplicity Eng'g, 900 F.2d 963, 966 (6th Cir.

1990)).

The availability of the third possibility -- jury trial

-- in ERISA cases is a matter on which many courts have spoken but

in ways that may reasonably be understood as creating some

unresolved conflicts. E.g., compare Turner v. Fallon Community

Health Plan, Inc., 953 F. Supp. 419 (D. Mass. 1997), with Padilla

De Higginbotham v. Worth Publishers, Inc., 820 F. Supp. 48 (D.P.R.

1993). We do not speak further to this conflict in this opinion,

for the reason that in any event the record before us fails to show

any disputable issue of fact appropriate for submission to a jury

in this case, as we