Burks v. American Cast Iron Pipe Co., 212 F.3d 1333 (11^th Cir. 2000)-Plaintiffs, who retired before Sept. 2, 1974, the enactment date of ERISA, filed suit against American Cast Iron Pipe Company when it ceased providing free medications as part of its health plan.  The plaintiffs sued in Alabama state court and alleged breach of contract, fraud, unjust enrichment, and conversion.  They based their complaint not only on the newly-required co-pay but also on claims of price-gouging by Cast Iron's pharmacists, who allegedly charged almost 900% of the Wal-Mart price for the same medication.  Cast Iron removed the case to federal district court based on ERISA preemption.  The district court denied the plaintiffs' request for discovery (finding that ERISA would preempt the plaintiffs' state law claims regardless of discovery findings) and entered summary judgment against them.

This court affirmed in part and reversed in part.  As to plaintiffs' causes of action, which accrued after the effective date of ERISA, the district court correctly found that ERISA preempted them.  However, as to plaintiffs' state claims for benefits based on pre-ERISA documents, the district court erred in applying ERISA substantive law retroactively to pre-1975 responsibilities.  When participants' rights form before ERISA's effective date, the court, as a matter of federal common law, must interpret the plan in light of a worker's pre-ERISA state law rights.'  The district court should have given Plaintiffs the opportunity to amend their complaint to state ERISA claims and to conduct discovery before losing on summary judgment.