In a decision illustrating the importance of a deferential standard of review in an ERISA plan document, the Second Circuit affirmed the dismissal of severance claims by a disabled employee, concluding that the complaint pled facts showing that the denial of benefits was reasonable. Soto v. Disney Severance Pay Plan, No. 20-4081 (2d Cir.
ERISA
Attorney-Client Privilege in ERISA Matters
A most basic precept of the law is the attorney-client privilege. A litigant being able to speak freely and completely with his or her counsel without the fear of the conversation being revealed has been a cornerstone of American jurisprudence.
Although the concept of the attorney-client privilege is recognized in ERISA matters, it is modified…
Allegedly Misclassified Independent Contractor Cannot Sue Under ERISA
A California district court recently foreclosed a former independent contractor’s claims for benefits from ERISA-governed plans when it found that plaintiff was not a “participant” as defined by ERISA and thus did not have statutory standing to assert his ERISA claims. Alders v. YUM! Brands, Inc., No. 8:21-cv-01191-PSG-DFM (C.D. Cal. Feb. 1, 2022).
After working…
Heightened Litigation Risk Is Not A Basis to Shield Attorney-Fiduciary Communications in 401(k) Litigation
A Massachusetts district court recently ordered defendants in an ERISA fiduciary breach case to produce certain communications with their in-house and outside counsel, rejecting defendants’ argument that the communications occurred in the context of attorneys advising a 401(k) plan’s sponsor and fiduciaries as to their potential fiduciary liability. In re GE ERISA Litig., 2022…
Supreme Court Vacates Seventh Circuit Decision in Fee Case, But Reiterates Rigorous Pleading Standard Applies
Yesterday, the Supreme Court issued its unanimous decision in Hughes v. Northwestern University, No. 19-1401, just one of more than 150 similar class action suits filed around the country in the last few years. The case was brought by retirement plan participants alleging that plan fiduciaries breached their duties under ERISA relating to recordkeeping and…
Eleventh Circuit Highlights Importance of Unambiguous Disclaimers in SPDs
The Eleventh Circuit recently affirmed an Alabama district court’s decision granting summary judgment in favor of Allstate Insurance Company in a consolidated ERISA class action challenging Allstate’s decision to stop paying premiums on retired employees’ life insurance policies. Klaas v. Allstate Ins. Co., 2021 U.S. App. LEXIS 38473 (11th Cir. Dec. 28, 2021).
For…
Sixth Circuit Panel Member Questions Basis For Remand to ERISA Plan Administrator
When a district court faces a claim for benefits under ERISA Section 502(a)(1)(B) where it believes that mistakes were made, but the record is not sufficiently developed to award benefits, the court may remand the matter to the plan administrator for further administrative review. Remands such as this have been affirmed by circuit courts for…
Eighth Circuit: District Court Improperly Resolved Factual Disputes on Summary Judgment in ERISA Benefits Case, But Error Harmless
In Avenoso v. Reliance Standard Life Insurance Company, No. 21-1772, 2021 U.S. App. LEXIS 35264 (8th Cir. Nov. 30, 2021), the Eighth Circuit clarified its position in a circuit split over the proper judicial procedure for deciding ERISA benefits cases.
The underlying case concerned the defendant’s denial of long-term disability benefits under an ERISA…
Supreme Court Struggles to Apply “Twiqbal” in Retirement Plan Fee Cases
Today, the Supreme Court heard oral arguments in Hughes v. Northwestern University, No. 19-1401, just one of about 150 similar class action suits filed around the country in the last few years. The case was brought by retirement plan participants alleging that plan fiduciaries breached their duties under ERISA relating to recordkeeping and investment fees…
Federal Court Enforces DOL Subpoena Seeking Information about ERISA Plan Service Provider’s Cybersecurity Program and Incidents with ERISA Plan Clients
Shortly after the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) issued its cybersecurity guidance for employee retirement plans and updated its audit inquiries to include compliance with these guidelines, a federal court in Chicago ruled an employee benefit services provider must comply with a subpoena requesting, among other things, documents and…