Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, Rollovers: What PTE 2020-02 and PTE 84-24 Would Require for Rollover Recommendations, below.
Category: ERISA Litigation
ERISA Moments Ep. 10: How PTE 2020-02 Will Be Changed
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, How PTE 2020-02 Will Be Changed, below.
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ERISA Moments Ep. 9: Who is a Fiduciary? The Proposal’s Three Definitions of Fiduciary
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, Who is a Fiduciary? The Proposal’s Three Definitions of Fiduciary, below.
ERISA Moments Ep. 8: The New Fiduciary Proposal: PTE 84-24 and the Obligations of Insurance Companies
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. Watch the newest episode, The New Fiduciary Proposal: PTE 84-24 and the Obligations of Insurance Companies, below.
District Court Finds Arbitration and Class Action Waiver Provision Enforceable in Retirement Plan
The Eastern District of Kentucky recently became the latest court to weigh in on arbitration and class action waiver provisions in ERISA-governed defined contribution plans. In Merrow v. Horizon Bank, the court found such a provision enforceable and compelled arbitration of the plaintiffs’ ERISA breach of fiduciary duty and prohibited transaction claims.
The three plaintiffs were former employees of P.L. Marketing (PLM), who were vested participants in the P.L. Marketing, Inc. Employee Stock Ownership Plan (the Plan). They filed an action against Horizon Bank, the Plan’s trustee, asserting that defendants violated ERISA by causing the Plan to overpay for company stock. Plaintiffs brought three ERISA claims, arguing: 1) Horizon participated in a prohibited transaction; 2) Horizon breached its fiduciary duty as the Plan administrator; and 3) the selling shareholders knowingly participated in ERISA violations under 29 U.S.C. § 1132(a)(3).
ERISA Moments Ep. 7: The New Fiduciary Proposal: PTE 84-24 and the Significant Disclosure Obligations
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The New Fiduciary Proposal: PTE 84-24 and the Significant Disclosure Obligations, below.
ERISA Moments Ep. 6: The New Fiduciary Proposal: PTE 84-24 and the Limits on Independent Agents’ Compensation
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The New Fiduciary Proposal: PTE 84-24 and the Limits on Independent Agents’ Compensation, below.
ERISA Moments: The New Fiduciary Proposal: An Overview of PTE 84-24 and its Impact
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, The New Fiduciary Proposal: An Overview of PTE 84-24 and its Impact, below.
ERISA Moments: New DOL Fiduciary Proposal Stirs Controversy — The Impact on the Insurance Industry
Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. See the newest episode, ERISA Moments: New DOL Fiduciary Proposal Stirs Controversy—The Impact on the Insurance Industry.
When One Door Closes, Another Opens… Maybe. Fourth Circuit Holds That Surcharge Is Not Equitable Relief Available Under ERISA But Paves the way for Unjust Enrichment Claims
In an ERISA case for wrongful denial of health insurance benefits, the U.S. Court of Appeals for the Fourth Circuit addressed when a plaintiff may recover monetary relief under §§ 502(a)(1)(B) and (a)(3). The Fourth Circuit unsurprisingly held that ERISA § 502(a)(1)(B) limits recovery to benefits due under the terms of a plan, and a plaintiff cannot recover the cost of a denied surgery because the cost is not a “benefit” due; coverage for the cost, and payment to the provider, is the benefit. Unless a plaintiff pays the bill first, the plaintiff cannot recover the cost from an insurer.
The court’s discussion of the § 502(a)(3) claim was not so straight-forward, however, and ultimately much more important. The Fourth Circuit held that § 502(a)(3), which expressly permits only “appropriate equitable relief,” does allow some forms of monetary relief (traditionally thought of as legal, and not equitable), but prohibits others.