Motions to Dismiss are denied in Saint Peter's Healthcare System Church Plan Litigation and Catholic Health East Church Plan Litigation
April 01, 2014
Cohen Milstein Sellers and Toll PLLC and co-counsel Keller Rohrback LLP successfully challenged claims by two healthcare conglomerates that their employee pension plans were not protected by a federal law designed to protect workers’ pensions. In Kaplan v. Saint Peter’s Healthcare System, the U.S. District Court for the District of New Jersey denied a hospital system’s motion to dismiss the complaint, ruling emphatically that the system’s pension plan “is not a church plan” that can put its employees’ pensions at risk by claiming to be exempt from federal pension laws. Similarly, in Chavies v. Catholic Health East, the U.S. District Court for the Eastern District of Pennsylvania denied another hospital conglomerate’s motion to dismiss, agreeing with the plaintiff’s position that the exemption claimed by defendants is limited to pension plans established by churches. Cohen Milstein and co-counsel continue to pursue a final ruling in both cases that will order the defendants to bring their pension plans into compliance with federal law and guarantee the security of their employees’ hard-earned compensation.