CAL's response:
CO’s lawsuit against nine pilots is still pending despite court's dismissal of some claims
U.S. District Judge Gray Miller dismissed some claims asserted by CO and the pilot pension plan against former CO pilots accused of getting sham divorces so they and their spouses or ex-spouses could have access to the pilots’ retirement benefits while the pilots continued flying. The lawsuit is still pending, and Continental intends to vigorously litigate the remaining claims.
The court acknowledged that the pilots at issue did not act in a manner consistent with the breakup of a marriage, but Miller said that the plain language of the statute at issue does not allow CO’s pension administrator to consider the employees’ motivation for getting divorced when deciding whether to “qualify” a domestic relations order issued by a family court and distribute pension benefits.
CO issued the following statement Monday in response to Judge Miller’s decision:
“While we are disappointed by this ruling based on a technical reading of the ERISA statute, we are heartened the court recognized that the facts show––and the pilots do not seem to contest––the pilots and their former spouses did not behave in a manner consistent with the breakup of a marriage.
“This ruling did not address the propriety of Continental’s termination of the pilots’ employment. Continental and the plan administrative committee still believe that the domestic relations orders were improper and to the detriment of plan beneficiaries as a whole. Continental is evaluating its appeal options.”