Court: Six Weeks Does Not a Relocation Make

October 30, 2002 ( - William Peach may have been asked to travel between Michigan and Texas for several weeks, he was not formally relocated so he wasn't entitled to severance pay, a federal judge ruled.

“Although a six- to eight-week stay in a location over a thousand miles away might reasonably be considered a ‘relocation,’ a requirement of weekly travel that begins on Monday and ends on Friday morning can be distinguished,” wrote US District Judge David Lawson of the US District Court for the Eastern District of Michigan, according to Washington-based legal reporter BNA.

Lawson agreed with Ultramar that Peach did not quit his job for “good reason” because he was not asked to relocate to San Antonio, but instead was asked to simply travel to San Antonio for business reasons.

“There will come a point in time when travel to the same location from another city, day after day, becomes a de facto relocation. Weekly travel for parts of five days for six weeks, however, will not establish ‘relocation’ as a matter of law,” the court said.

Trips Were to Train Other Employees

According to court records, Peach was asked in 1998 to travel from Alma, Michigan to San Antonio Texas to train employees as part of Ultramar Diamond Shamrock’s acquisition of Total Petroleum Inc. the year before.

The BNA report said Peach, a Total employee, was asked to be part of a transition team for six weeks with his official termination date scheduled for September 30, 1998.

Ultramar offered to fly Peach into San Antonio on Monday mornings and back to Michigan on Friday mornings, BNA said. On several occasions, Peach refused Ultramar’s attempt to have him travel to San Antonio and eventually Peach quit his job.

After leaving, Peach filed an application for benefits through Ultramar’s severance plan. Under the plan, an employee was entitled to benefits if he or she left the company for “good reason.” The term “good reason” was defined to include situations where an employee was asked to relocate.

When Ultramar refused to pay Peach severance benefits, Peach sued, alleging Ultramar violated ERISA.

The case is Peach v. Ultramar Diamond Shamrock, E.D. Mich., No. 01-10095-BC, 10/24/02.