Case: Health Care & Benefits/Preemption (E.D. Mo.)

A federal district court in Missouri denied an employee’s motion to remand his breach of contract action against Tacony Corp. claiming that Tacony breached its stock appreciation plan by improperly calculating the amount due to him when his employment was terminated, resulting in $14,390 in damages. The court denied the employee’s motion to remand to state court because the plan is covered by ERISA, so any state-law claims are preempted. Because the plan systematically defers compensation until after termination or death, it meets ERISA’s definition of an employee pension benefit plan, the court said.