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Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Arbitration

Eighth Circuit

Sutton v. DST Systems Inc, No. 4:21-09052, 2021 WL 4896545 (W.D. Mo. Oct. 20, 2021) (Judge Nanette K. Laughrey). For the third week in a row, DST Systems, Inc. is ordered to pay the arbitration awards against it. Briefly stated, DST failed to monitor and ensure the rebalancing of overly concentrated investments in its defined contribution retirement plan. This mismanagement resulted in lawsuits from plan participants in Missouri in which DST argued successfully in favor of compulsory arbitrations. Hundreds of plan participants subsequently brought arbitration proceedings against DST.
Continue Reading Your ERISA Watch – Week of October 27, 2021

Reetz v. Lowe’s Companies, Inc., No. 5:18-CV-00075-KDB-DCK, 2021 WL 4771535 (W.D.N.C. Oct. 12, 2021) (Judge Kenneth D. Bell). 

This week’s notable decision is a surprising loss for participants in Lowe’s 401(k) pension plan against the plan’s investment manager, Aon Hewitt Investment Consulting, following class certification, success on summary judgment, and a multi-million-dollar, court-approved settlement with Lowe’s inside fiduciaries.   

Plaintiff Benjamin Reetz, a former Lowe’s employee and 401(k) plan participant, brought suit against Lowe’s, the administrative committee of the plan, and Aon, claiming numerous breaches of fiduciary duty with respect to Aon’s design and implementation of a new investment strategy and line-up for the plan. Following class certification, plaintiff’s claims against Lowe’s and the administrative committee were resolved through a class action settlement totaling $12.5 million. But the claims against Aon proceeded to a bench trial.
Continue Reading Lowe’s 401(k) Participants Lose at Trial After Winning Every Battle

Warmenhoven v. NetApp, Inc., No. 19-16960, __ F.4th __, 2021 WL 4143107 (9th Cir. Sept. 13, 2021) (Before Circuit Judges Christen and Bade, and District Judge Gary Feinerman).

Although ERISA does not require that welfare benefits vest, courts recognize that they can vest when an employer promises to provide such benefits for life. This case explores the thorny issue of when such a promise of lifetime healthcare benefits is irrevocable and, if not irrevocable, when such a promise constitutes a fiduciary breach and therefore lay the foundation for an equitable relief claim. 
Continue Reading Promises, Promises: Statements in a PowerPoint About Lifetime Health Benefits May Bind Employer