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GAYNOR v. EPHRATA COMMUNITY HOSP.

June 23, 1988

William B. Gaynor, M.D.
v.
Ephrata Community Hospital, Ephrata Community Hospital Insurance Committee, and Pension Plan for Employees of Ephrata Community Hospital



The opinion of the court was delivered by: CAHN

 EDWARD N. CAHN, UNITED STATES DISTRICT JUDGE.

 Plaintiff has sued defendants under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. ยงยง 1001-1461 (1982), for breach of fiduciary duties and for benefits allegedly due under the terms of a defined benefit pension plan (the plan) administered by the defendant insurance committee. The issues raised by defendants' motion for summary judgment center on two documents executed at different times on June 16, 1977. The first is an employment contract (the 1977 contract) between the plaintiff and defendant Ephrata Community Hospital covering the three-year period ending July 1, 1980. The second is a waiver and indemnity agreement (the 1977 waiver) executed by the plaintiff later the same day.

 The employment contract contains the following provisions:

 
(2) . . .
 
The Physician shall not be included in the Hospital's pension, hospitalization or other employee benefits, in effect during the term of this Agreement, to which the Hospital employees are entitled or subsequently become entitled.
 
. . . .
 
(13) This document contains the entire agreement of the parties. . . .

 The waiver and indemnity agreement provides:

 
WHEREAS, Gaynor has not participated in the Hospital's pension plan, because of a series of private employment agreements between Gaynor and the Hospital dating from 1959; and
 
WHEREAS Gaynor has instructed Hospital, and plans in the future to instruct Hospital, to make the maximum contributions to his tax sheltered annuity permitted under Section 415 of the Internal Revenue Code; and
 
WHEREAS participation in the pension plan of the Hospital by Gaynor will cause the deductible contributions to the tax sheltered annuity to be reduced under Section 415 of the Internal Revenue Code.
 
NOW, THEREFORE, intending to be legally bound, Gaynor hereby waives any right to participate in any employee retirement plan of the Hospital as may have heretofore existed, exist now or in the future, and hereby waives and releases any right to claim any benefit under any such plan of the Hospital on account of services performed or to be performed for the Hospital.
 
. . . .
 
Gaynor hereby agrees to indemnify and hold harmless the Hospital, its successors and assigns, on account of any claim for any liability of any kind whatsoever arising out of the exclusion of Gaynor from participation in the past, present or ...

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