Zavislak v. Netflix, Inc.
- Edward Davila
- 5:21-cv-01811
- U.S. District Court · Northern District of California
- 8
In Zavislak v. Netflix, Judge Davila reduced ERISA penalties and denied Netflix permission to seek reconsideration.
Netflix’s financial liability to Mark Zavislak was reduced from $6,465 to $765 for Count I; the court otherwise left its prior findings unchanged.
What happened
In Zavislak v. Netflix, Inc., Mark Zavislak claimed Netflix did not timely provide documents for his health and wellness benefits plan. The court had previously found that Netflix provided all required documents on February 24, 2021, but had awarded penalties through March 11, 2022.
Netflix argued that the penalty period should end on February 24, 2021, and that the court should reduce or eliminate the penalties. Netflix also asked for permission to file a reconsideration motion.
Judge Edward J. Davila granted in part and denied in part Netflix’s motion to amend. He changed the penalty period to January 4, 2021, through February 24, 2021, resulting in $765 in damages, and denied Netflix’s motion for leave to file a motion for reconsideration. All other findings remained unchanged.
The detailed version
- Zavislak v. Netflix, Inc. · No. 5:21-cv-01811
- Edward Davila
- June 7, 2024
Background
Mark Zavislak alleged that Netflix, the administrator of his health and wellness benefits plan, failed to timely provide documents required by Section 104 of the Employee Retirement Income Security Act of
- Zavislak sent a document request postmarked January 4,
- After a follow-up letter on February 11, 2021, Netflix provided seven plan documents on February 24,
- Zavislak later made another request on February 28, 2022, and Netflix responded on March 11,
- The February 2022 request was not the subject of Zavislak’s claim.
In its January 31, 2024, Findings of Fact and Conclusions of Law, the court found that Netflix was not required to provide the additional documents Zavislak requested, that Netflix provided the most up-to-date finalized documents in its possession, and that Netflix’s response to the January 2021 request was untimely. The court awarded penalties of $15 per day from January 4, 2021, through March 11, 2022, for a total award of $6,465 for Count I.
Netflix’s Motions
Netflix moved to amend the final order or obtain relief from judgment under Federal Rules of Civil Procedure 59 and 60. It argued that the court’s penalty calculation was inconsistent with its finding that Netflix provided all required documents on February 24, 2021. Netflix also argued that the court should reduce or eliminate the penalties based on the COVID-19 pandemic, the Department of Labor’s suspension of deadlines, and the timing of Zavislak’s requested penalty period.
Netflix separately sought permission under Civil Local Rule 7-9(b) to file a motion for reconsideration.
Court’s Analysis
The court declined to analyze the request for permission to seek reconsideration under Local Rule 7-9(b) because the Findings of Fact and Conclusions of Law were not an interlocutory order. The court therefore denied Netflix’s motion for leave to file a motion for reconsideration.
As to the motion to amend, the court agreed that the damages calculation contained a mistake. The earlier calculation incorrectly assumed that Zavislak did not follow up on his January 2021 request until more than a year later. The court found that Zavislak followed up on February 11, 2021, and that Netflix provided the required documents on February 24, 2021. Although the production was untimely, Netflix’s statutory duty for that request was discharged on February 24, 2021.
The court rejected Netflix’s request to reduce or eliminate the penalties further. It had already considered the pandemic-related circumstances when it chose a discretionary penalty of $15 per day rather than the $110 per day Zavislak requested. The court also concluded that it was not required to begin calculating penalties on the thirty-first day after the request and could begin the calculation on the date the request was postmarked.
Disposition
The court granted in part and denied in part Netflix’s motion to amend. It amended the penalty period to January 4, 2021, through February 24, 2021. The $15-per-day penalty for those 51 days resulted in total damages of $765. The court denied Netflix’s motion insofar as it sought to reduce or eliminate all penalties. It also denied Netflix’s motion for leave to file a motion for reconsideration. All other findings of fact and conclusions of law remained unchanged.
Read the full 8-page opinion on CourtListener, the free public archive maintained by the Free Law Project.