Olsen v. Pratt & Whitney Aircraf

136 F.3d 273 (2nd Cir. 1998)

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Nature of the Case

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Facts

Olsen (P) claimed that Pratt (D) promised him job security if P would revoke his participation in a special early retirement program. P was employed by D from 1956 to 1992, and when he left employment, he was a Fire Lieutenant in the Fire and Security Department. P was notified in 1991 that he was eligible to participate in an early retirement program as he was then 54 years old. If P participated in that program, he would get an increased pension and a $10,000 lump sum payment. P enrolled in that program and was ready to retire in 1992. However, soon thereafter, D represented to him that his job was secure and that he should revoke his participation in the early retirement program. P revoked that participation in January 1992 and was then terminated on September 1992. P sued D for breach of contract, an age discrimination claim and two claims involving seniority. P also claimed that the document revoking his participation in early retirement was void because it was signed after the statutory period for revocation expired under ERISA. The district court dismissed the ERISA claim along with the others and P appealed on the common law fraud claim. The district court had dismissed that claim as it found that it was preempted by the ERISA. D also argued that the fraud allegations failed to comply with heightened pleading standards under FRCP 9(b).