Good morning, ERISA Watchers! There were several appellate court decisions this past week, but I want to highlight a district court case that presents a good lesson for employers and plan participants alike when it comes to changes to plan benefits. In Boyles, Jr. v. American Heritage Life Insurance Company, et al., No. 3:15-CV-274, 2019 WL 1767565 (W.D. Pa. Apr. 22, 2019), Plaintiff Boyles brought suit for the denial of disability benefits against his former employer, St. Marys Insurance Agency; the president of his former employer, Jeffrey Azzato; the employer’s former long-term disability insurer, Allstate; and the employer’s current LTD insurer, Unum. He also alleged that Azzato and St. Marys breached their fiduciary duties to him.
Continue Reading Court Holds Employer Has No Affirmative Duty to Inform Participant of Change in Disability Insurers
Fourth Circuit Affirms Multi-Million Judgment Against Trustee for Breach of Fiduciary Duty to Employee Stock Ownership Plan
This week’s notable decision is Brundle v. Wilmington Tr., N.A., No. 17-1873, __F.3d__, 2019 WL 1287632 (4th Cir. Mar. 21, 2019), as amended (Mar. 22, 2019), where the Fourth Circuit Court of Appeals affirmed the district court’s findings that the ESOP trustee caused the ESOP to overpay for the corporation’s stock by $ 29,773,250. The district court awarded attorneys’ fees to the participant’s counsel under 29 U.S.C. § 1132(g)(1) in the amount of $ 1,819,631.11 and an additional $1.5 million in fees from the damages award.
On appeal, Wilmington challenged the district court’s liability and damages determinations and its award of $1.5 million in non-statutory attorneys’ fees. Brundle cross-appealed and challenged as inadequate the same portion of the attorneys’ fees award.
Continue Reading Fourth Circuit Affirms Multi-Million Judgment Against Trustee for Breach of Fiduciary Duty to Employee Stock Ownership Plan
No Preemption! 9th Circuit Revives Employers’ State-Law Claims Against Health Insurance Companies for Hidden Surcharges and Kickbacks
Good morning, ERISA Watchers! I just returned from the ABA Employee Benefits Committee Mid-Winter Meeting in Nashville, where I got to see many of you and add several new subscribers! As a reminder, and for the new folks, all the cases discussed in this newsletter are hyperlinked to the full text of the decision if you want to read more.
The first of this week’s notable decisions is The Depot, Inc. v. Caring for Montanans, Inc., No. 17-35597, __F.3d__, 2019 WL 453485 (9th Cir. Feb. 6, 2019), a published decision from the Ninth Circuit addressing fiduciary actions, plan assets, remedies and preemption.
Continue Reading No Preemption! 9th Circuit Revives Employers’ State-Law Claims Against Health Insurance Companies for Hidden Surcharges and Kickbacks