The ERISA Litigation Group
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In December 2018, we reported here that the Second Circuit became the first court at any level to allow an ERISA stock-drop claim to survive a motion to dismiss since the Supreme Court revamped the pleading standard for such claims several years ago. The Second Circuit reinstated a claim for breach of fiduciary duty under … Continue Reading
The Second Circuit reinstated a claim for breach of fiduciary duty under ERISA brought by participants in IBM’s 401(k) plan who suffered losses from their investment in IBM stock. Jander v. Retirement Plans Committee of IBM, et al. 2018 WL 6441116 (2d Cir. Dec. 10, 2018). In so ruling, the Second Circuit became the first … Continue Reading
In Gearlds v. Entergy Servs., Inc., 2013 WL 610543 (5th Cir. Feb. 19, 2013), the Fifth Circuit held in light of CIGNA Corp. v. Amara that plaintiff pled a plausible claim for relief for losses he claims to have suffered from foregoing benefits under his wife’s retirement plan, and remanded to the district court to … Continue Reading
In In re: Nortel Networks Inc., No. 1:09-bk-10138 (Bankr. D. Del. 2013), Nortel Networks Inc. reached a settlement with over 3,000 of its retired employees for nearly $67 million. Nortel, a former telecom equipment maker, filed for bankruptcy in 2009. In the subsequent four years, Nortel sold off nearly all of its assets, but had … Continue Reading
In McCay v. Drummond, 2013 WL 616923 (11th Cir. Feb. 20, 2013), the Eleventh Circuit held that deficiencies in a notice of denial of benefits did not excuse a participant’s failure to appeal within a designated 180-day time period. In so ruling, the Court reasoned that plaintiff’s allegations of defendant’s noncompliance with ERISA’s technical requirements … Continue Reading
In Schafer v. Multiband Corp., 2013 WL 607910 (E.D. Mich. Feb. 19, 2013), a district court vacated the decision of an arbitrator who concluded that indemnification agreements executed in connection with the establishment of an employer stock ownership plan and an employee stock ownership trust violated ERISA § 410(a), 29 U.S.C. § 1110(a). The agreements indemnified … Continue Reading
In MHA, LLC v. Aetna Health, Inc., 2013 WL 705612 (D.N.J. Feb. 25, 2013), a district court held that a hospital lacked standing to bring a claim for benefits under ERISA because its patients had only authorized the payment of benefits, and had not assigned their rights to recover those benefits.… Continue Reading
In Int’l Painters and Allied Trades Indus. Pension Fund v. Clayton B. Obersheimer, Inc., 2013 WL 594691 (D. Md. Feb. 13, 2013), a district court rejected plaintiffs’ contention that company officers were acting as ERISA fiduciaries in connection with the company’s delinquent contributions to a pension plan because they exercised discretionary control over the unpaid … Continue Reading
In Taveras v. UBS AG, 2013 WL 692535 (2d Cir. Feb. 27, 2013), the Second Circuit held the Moench presumption of prudence did not apply to fiduciaries of an eligible individual account plan where the plan document neither required nor “strongly” encouraged investment in the defendant’s stock fund. The Court accordingly reversed and remanded a … Continue Reading
In Grote v. Sebelius, 2013 WL 362725 (7th Cir. Jan. 30, 2013), the Seventh Circuit held that members of the Grote family, and their company, Grote Industries, were entitled to an order enjoining enforcement of the Affordable Care Act’s requirements that non-grandfathered health plans cover certain preventative health services, including contraceptives, without cost-sharing. Plaintiffs sued … Continue Reading
The U.S. Supreme Court previously held that an ERISA plan administrator must distribute benefits to the beneficiary named in the plan, regardless of any state law waiver purporting to divest that beneficiary of his right to the benefits. That case explicitly left open the question of whether, once the benefits are distributed by the administrator, … Continue Reading
In In re Interstate Bakeries Corp., 2013 U.S. App. LEXIS 1663 (8th Cir. Jan. 25, 2013), the Eighth Circuit affirmed the district court’s ruling that Hostess’ failure to provide a COBRA notice to a terminated employee did not cause the employee to suffer a sufficient degree of prejudice to be entitled to recovery of statutory … Continue Reading
In Raymond v. Callebaut, 2013 WL 150232 (3d Cir. Jan. 15, 2013) (summary order), the Third Circuit affirmed the district court’s ruling that dismissed plaintiff’s claim seeking benefits due under the terms of a 401(k) plan because plaintiff’s claim was filed more than fourteen years after it had accrued. Plaintiff’s claim was based on an … Continue Reading
In David v. Alphin, 2013 WL 142072 (4th Cir. 2013), plaintiffs alleged that defendants engaged in prohibited transactions and breached their fiduciary duties by selecting and maintaining Bank-affiliated mutual funds in the investment menu for the Bank’s 401(k) Plan and the Bank’s separate defined benefit pension plan. The Fourth Circuit affirmed dismissal of plaintiffs’ claims. … Continue Reading
In Wooden v. Alcoa, 2013 WL 141777 (6th Cir. Jan. 11, 2013), the Sixth Circuit ruled that defendant’s claim for reimbursement of benefits overpayments was appropriate equitable relief because defendant’s claim was properly limited to a specified fund within plaintiff’s general assets — the proportion of income that would have been reduced if she had … Continue Reading
In Coleman v. Supervalu Inc. Short Term Disability Program, 2013 WL 365263 (N.D. Ill. Jan. 31, 2013), the court denied an ERISA plan’s motion to dismiss for improper venue, holding that the venue selection clause was unenforceable. In so ruling, the court concluded that such clauses are contrary to public policy and inconsistent with congressional … Continue Reading
In Rossi v. Precision Drilling Oilfield Services Corp. Employee Benefit Plan, 2013 WL 85910 (5th Cir. Jan. 8, 2013), the Fifth Circuit held that defendant violated ERISA § 503 by changing its basis for denying plaintiff medical coverage, because doing so prevented plaintiff from having a meaningful review of the denial of benefits. The court thus … Continue Reading
In Lifecare Management Services LLC v. Insurance Management Administrators Inc., 2013 U.S. App. LEXIS 239 (5th Cir. Jan. 4, 2013), the Fifth Circuit affirmed the district court’s ruling that a third party administrator of an ERISA welfare plan was a proper defendant in a claim for benefits under ERISA § 502(a)(1)(B) if the TPA “exercise[d] ‘actual … Continue Reading
In Govrik v. Unum Life Ins. Co. of Am., 702 F.3d 1103 (8th Cir. 2013), the Eighth Circuit held that Unum operated under a structural conflict of interest (as it was both the decision-maker of the claim and the payer of benefits), but it did not abuse its discretion in terminating the insured’s LTD benefits … Continue Reading
In Gaglioti v. Levin Group, Inc., No. 11–3744, 2012 WL 6217365 (6th Cir. Dec. 13, 2012), the Sixth Circuit affirmed summary judgment dismissing ERISA Section 510 and disability discrimination claims, but reversed as to age discrimination claims. Upon hiring, Plaintiff was immediately given health benefits. A few months later, shortly after disclosing health problems regarding his … Continue Reading
In Johnson v. Meriter Health Services Employee Retirement Plan, No. 12-2216, 2012 WL 6013457 (7th Cir. Dec. 4, 2012) (J. Posner), the Seventh Circuit affirmed the lower court’s grant of class certification of ERISA claims for declaratory relief under Fed. R. Civ. P. 23(b)(2), while acknowledging that individualized issues may preclude certification of claims for … Continue Reading
In Kifafi v. Hilton Hotels Retirement Plan, — F.3d —, No. 11-7113, 2012 WL 6216631 (D.C. Cir. Dec. 14, 2012), the D.C. Circuit affirmed a judgment holding that Hilton violated ERISA’s anti-backloading provisions, despite a subsequent amendment purporting to cure the violation in response to plaintiffs’ claims. Under the terms of the pre-1999 plan, the … Continue Reading
In Slaymon v. SLM Corp., 2012 WL 6684564 (2d Cir. Dec. 26, 2012), the Second Circuit Court of Appeals affirmed dismissal of an employer-stock class action in a summary order. Plaintiffs were employees of SLM Corp. (also known as Sallie Mae) who alleged that the fiduciaries of two Sallie Mae retirement plans breached fiduciary duties … Continue Reading
In Carr v. Anheuser Busch Co., No. 12–1224, 2012 WL 6685323 (8th Cir. Dec. 21, 2012), the Eighth Circuit affirmed summary judgment dismissing an ERISA Section 502(a)(1)(B) claim for severance benefits, finding that the plaintiff was terminated for misconduct, thereby disqualifying him from receiving benefits under the terms of the plan. Plaintiff was terminated for attempting … Continue Reading
U.S. Supreme Court Agrees to Hear IBM’s Challenge to Second Circuit Ruling in ERISA Stock-Drop Suit
By The ERISA Litigation Group on Posted in Employer Stock Fund Litigation
Second Circuit Revives Dismissed ERISA Stock-Drop Suit
By The ERISA Litigation Group on Posted in Employer Stock Fund Litigation
Fifth Circuit Remands for Determination of Whether Surcharge is Appropriate
By The ERISA Litigation Group on Posted in Case Summaries, Damages, Remedies
Nortel Reaches Settlement with Retirees
By The ERISA Litigation Group on Posted in Case Summaries, Settlements
Eleventh Circuit Refuses to Excuse Exhaustion
By The ERISA Litigation Group on Posted in Benefit Claim Procedures, Case Summaries
Arbitrator Determined to Have Erroneously Denied Enforcement of Indemnification Agreement
By The ERISA Litigation Group on Posted in Case Summaries, ESOP, Indemnification
Hospital Lacks Standing Without Proper Authorization
By The ERISA Litigation Group on Posted in Case Summaries, Standing
Employers’ Discretion Over Whether to Pay Contributions Does Not Confer Fiduciary Status
Second Circuit Issues Additional Ruling on Scope of Moench Presumption
By The ERISA Litigation Group on Posted in Case Summaries, Employer Stock Fund Litigation
Seventh Circuit Enjoins Enforcement of ACA Based on Religious Beliefs
By The ERISA Litigation Group on Posted in Affordable Care Act, Case Summaries, Health Care
Fourth Circuit Allows Post-Distribution Suits to Enforce State Law Waivers
By The ERISA Litigation Group on Posted in Case Summaries, State Law Waivers
Eighth Circuit Declines to Award COBRA Penalties in the Absence of Prejudice
By The ERISA Litigation Group on Posted in Case Summaries, COBRA
Third Circuit Rules Statute of Limitations Accrues Upon Receipt of Notice of Distribution From IRS
By The ERISA Litigation Group on Posted in Case Summaries, Standing, Statute of Limitations
Fourth Circuit Concludes Participants Have No Constitutional Standing to Assert Prohibited Transaction Claims
By The ERISA Litigation Group on Posted in Case Summaries, Standing, Statute of Limitations
Sixth Circuit Rules Claim for Reimbursement is Appropriate Equitable Relief
By The ERISA Litigation Group on Posted in Case Summaries, Overpayment of Benefits
Venue Selection Clause Unenforceable as Contrary to Public Policy
By The ERISA Litigation Group on Posted in Case Summaries, Venue
Fifth Circuit Rules that Changed Basis for Denying Claim Violated ERISA § 503
By The ERISA Litigation Group on Posted in Benefit Claim Procedures, Case Summaries
Fifth Circuit Determines TPA is Proper Defendant
By The ERISA Litigation Group on Posted in Case Summaries, Proper Defendants
Govrik v. Unum Life Ins. Co. of Am.
By The ERISA Litigation Group on Posted in Benefit Claim Procedures, Case Summaries
Sixth Circuit Rules Plaintiff Failed to Prove Specific Intent Required Under ERISA Section 510
Seventh Circuit Affirms Certification of Rule 23(b)(2) Class Action
By The ERISA Litigation Group on Posted in Case Summaries, Class Actions
D.C. Circuit Concludes that Plan Violated ERISA’s Anti-Backloading Rules
By The ERISA Litigation Group on Posted in Benefit Accruals, Case Summaries
Second Circuit Dismisses Stock-Drop Claim Based on Moench Presumption of Prudence
Eighth Circuit Affirms Denial of Severance Benefits Where Plaintiff Terminated for Misconduct
By The ERISA Litigation Group on Posted in Case Summaries, Severance
