Breach of Fiduciary Duty

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Browe v. CTC Corp., Nos. 19-677-CV, 19-813-CV, __ F.4th __, 2021 WL 4449878 (2d Cir. Sept. 29, 2021) (Before Circuit Judges Livingston, Lynch, and Bianco).

If you ever need to show someone a case to demonstrate how messy ERISA can be, you may want to consider this one. In this decision, the Second Circuit tackled a full buffet of ERISA issues, including statutes of limitations, “top hat” plan status, liability among fiduciaries, statutory penalties, and how to calculate and apportion remedies.

The trouble began when CTC Corporation, a Vermont photo-finishing company, decided to offer its employees a deferred compensation benefit plan in 1990. When the rise of digital photography obsoleted traditional film development, the company crumbled and so did the plan. CTC began using plan assets to fund the business in 2004, and eventually it was forced to cease doing business in 2014. This lawsuit, brought by several CTC employees against CTC and its managers, followed. The district court largely ruled for plaintiffs, but neither side was happy, and both appealed.
Continue Reading Pension Plan Participants Largely Prevail in a Kitchen Sink Appeal to the Second Circuit

Sacerdote v. New York University, No. 18-2707, __ F. 4th __, 2021 WL 3610355 (2d Cir. Aug. 16, 2021) (Before Circuit Judges Newman, Walker and Menashi).
This week’s notable decision is a partial victory for plaintiffs in the latest round of fee cases against universities that allegedly have not been too smart about their pension plan investments. The Second Circuit partially reversed the district court, which had dismissed or ruled in favor of the defendants on all claims.Continue Reading Second Circuit Sends NYU Back to the Drawing Board