News & Analysis as of

Breach of Duty Fiduciary

Kohrman Jackson & Krantz LLP

Sixth Circuit Overturns Arbitration Clause in ERISA Lawsuit Against Kellogg

The Sixth Circuit Court of Appeals recently reversed a Michigan District Court’s grant of a motion to compel arbitration and dismissal in an unpublished decision Fleming v. Kellogg Company et al., No. 23-1966....more

Holland & Hart - Employers' Lawyers

Employer Considerations Following Wave of 401(k) Forfeiture Lawsuits

Over the past year, numerous employers and their 401(k) plan fiduciaries have faced lawsuits regarding how forfeited employer contributions to their 401(k) plan are utilized. This wave of lawsuits began approximately a year...more

McAfee & Taft

Gavel to Gavel: Fiduciary committees offer shield against welfare plan litigation

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Investment and administrative committees for employer-sponsored retirement plans have long been the gold standard for a company to carry out its fiduciary obligations to plan participants as required by the Employee...more

Winstead PC

Court Affirms Summary Judgment For An Executrix’s Estate Based On Limitations

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In In re Estate of Maun, a brother sued his sister’s estate for her performance as executrix of their mother’s estate since the late 1980s. No. 13-22-00576-CV, 2024 Tex. App. LEXIS 52 (Tex. App.—Corpus Christi January 4,...more

Mayer Brown

Northern District of Texas Expands Fiduciary Exposure by Permitting ESG Proxy Voting Theory to Go to Trial

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Case Name and Number: Spence v. American Airlines, Inc., et al., No. 4:23-cv-00552 - INTRODUCTION - On June 20, 2024, Judge Reed O’Connor in the Northern District of Texas (the “court”) denied a motion for summary...more

Proskauer - Employee Benefits & Executive...

Massachusetts District Court Grants Motion to Dismiss 401(k) Fiduciary Breach and Prohibited Transaction Claims

A federal district court in Massachusetts dismissed ERISA fiduciary breach and prohibited transaction claims against 401(k) plan fiduciaries, ruling that the prohibited transaction claims were time-barred and the fiduciary...more

Proskauer - Employee Benefits & Executive...

Putative ESOP Class Action Dismissed for Failure to Exhaust Administrative Remedies

The decision in Bolton v. Inland Fresh Seafood Corp. of America Inc., No. 22-cv-4602 (N.D. Ga. Dec. 5, 2023)should serve as a reminder to all ERISA practitioners that, if litigating in courts of the Eleventh Circuit,...more

Proskauer - Corporate Defense and Disputes

Delaware Chancery Court Holds that High Standard for Oversight Liability Applies to Corporate Officers

The Delaware Court of Chancery recently held that claims for breach of the fiduciary duty of oversight are not easier to plead against corporate officers than against corporate directors. The decision in Segway Inc. v. Cai...more

Warner Norcross + Judd

How Should a Personal Representative Respond When Interested Persons Disagree Over Validity of a Proffered Will?

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The Michigan Court of Appeals recently issued a decision that offers guidance as to how a personal representative should respond when the interested persons disagree over the validity of a proffered will. In re Estate of...more

Holland & Knight LLP

Tenth Circuit Dismisses Claims Related to High-Cost Funds, High Recordkeeping Fees

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The U.S. Court of Appeals for the Tenth Circuit issued its decision in Matney v. Barrick Gold of North America, et al. on Sept. 6, 2023, finding that participants in an employer-sponsored defined contribution retirement plan...more

Bricker Graydon LLP

Fidelity Bonds v. Fiduciary Insurance - Do You Know the Difference?

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As you may be aware, Employee Retirement Income Security Act (ERISA) fidelity bonds and fiduciary liability insurance are not the same. Both serve to mitigate risk for fiduciaries, and are critical aspects of an employee...more

Winstead PC

Court Granted Mandamus Relief To Vacate A Temporary Restraining Order In A Fiduciary Case

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In In re Sanchez, a plaintiff filed suit against a defendant for (1) conspiracy; (2) fraud and conspiracy to commit fraud; (3) aiding and abetting/conspiracy; (4) breach of fiduciary duty; and (5) Texas Theft Liability Act...more

Conyers

Make No Mistake: Examining the Hastings-Bass Rule on Fiduciaries’ Mistakes Under Cayman Islands Law

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The Cayman Islands reformed its trust laws to provide a statutory mechanism by which flawed decisions of trustees and other fiduciaries can be set aside on application to the court. The codification of the Hastings‑Bass rule...more

Proskauer - Employee Benefits & Executive...

Two More District Courts Reject ERISA Fee and Performance Claims as Insufficient

Two recent district court decisions add to the growing number of courts granting motions to dismiss putative ERISA class actions challenging defined contribution plan fees and investment performance. These decisions from the...more

Lathrop GPM

(Almost) Ten Top Tips for Fiduciaries to Avoid Litigation

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​​​​​​​Fiduciaries sometimes find themselves in the unenviable position of facing conflict, whether with or among beneficiaries. In this article we offer some tips for preventing and managing conflicts and approaching the...more

Bass, Berry & Sims PLC

Supreme Court Hears Oral Argument: Are Allegations of Excessive Retirement Plan Fees Sufficient to State a Claim under ERISA?

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On December 6, the U.S. Supreme Court heard oral argument in the case of Hughes v. Northwestern University. The question at issue is whether allegations that a defined-contribution retirement plan paid fees that substantially...more

Faegre Drinker Biddle & Reath LLP

Lessons Learned from Recent Fiduciary Victories

There is nothing a plan sponsor or ERISA fiduciary can do to prevent allegations of fiduciary breach; however, there are many things they can do to be prepared to rebut such claims. Unfortunately, because of “headline news,”...more

Goodwin

ERISA Litigation Update - October 2021

Goodwin on

Welcome to Goodwin’s ERISA Litigation Update. Litigation involving ERISA-governed benefits plans has exploded in recent years. Lawyers in our award-winning ERISA Litigation practice have extensive experience litigating these...more

Littler

Ontario, Canada Court Finds With-Cause Dismissal of Long-term Fiduciary Employee Justified

Littler on

In Goruk v. Greater Barrie Chamber of Commerce, 2021 ONSC 5005, the Ontario Superior Court found that the Chamber of Commerce (COC) was justified in dismissing with cause a 75-year-old, long-term employee with no prior...more

Verrill

Recent Court Decisions Extend the Statute of Limitations for Breach of Fiduciary Duty Lawsuits under ERISA

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ERISA Fiduciary Duties and Liability - Under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), a plan fiduciary must (i) act prudently, for the exclusive purposes of providing benefits to plan...more

Proskauer - Employee Benefits & Executive...

District Court Dismisses Investment and Recordkeeping Claims Against 401(k) Plan Fiduciaries

A Kentucky federal district court ruled that a participant in CommonSpirit Health’s 401(k) plan failed to state plausible claims for breach of fiduciary duty related to the fees and performance of actively managed target date...more

Winstead PC

A Limitation-Of-Liability Clause May Or May Not Be Enforceable For Breach Of Fiduciary Duty Claims

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Parties often add limitation-of-liability clauses to their agreements. These types of clauses can purport to limit a party’s claims or damages or both. ...more

Holland & Knight LLP

Ruling: ERISA Does Not Preempt Certain State-Law Claims Against "Dual-Hat" Officers, Directors

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In Halperin v. Richards, the U.S. Court of Appeals for the Seventh Circuit considered whether the Employee Retirement Income Security Act of 1974 (ERISA) preempted certain state-law corporate liability claims against officers...more

Goodwin

ERISA Litigation Update - April 2021

Goodwin on

Welcome to Goodwin’s ERISA Litigation Update. Litigation involving ERISA-governed benefits plans has exploded in recent years. Lawyers in our award-winning ERISA Litigation practice have extensive experience litigating these...more

McDermott Will & Emery

Health Plan Sponsor Assessed Attorneys' Fees for Pursuing Meritless ERISA Claims against Plan Administrators

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The US Court of Appeals for the Eighth Circuit upheld an award of attorneys’ fees payable by a health plan sponsor to the plan administrators that the plan sponsor had sued. See Central Valley Ag Cooperative, et al. v....more

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