ERISA Preemption

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Hello, ERISA Watchers!  Getting this out a day early so I could wish you all a Happy Passover, Easter, and Sunday!  This was another relatively slow week for ERISA decisions.  I expect it to pick back up over the next few weeks.  

This week’s notable decision is Skornick v. Principal Financial Group, et al., No. 18-CV-4324 (CS), 2019 WL 1723741 (S.D.N.Y. Apr. 18, 2019), where the court determined that a group disability benefit policy purchased through Defendant Brooklyn Public Library (“the Library”) is subject to ERISA because it does not meet ERISA’s governmental plan exemption.
Continue Reading Court Holds that Brooklyn Public Library Disability Plan is Not Subject to ERISA Governmental Plan Exemption

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

Good morning, ERISA Watchers!  Last week was quite a busy week with notable Circuit Court decisions.  In Hager v. DBG Partners, Inc., No. 17-11147, __F.3d__, 2018 WL 4258968 (5th Cir. Sept. 6, 2018), the court addressed an issue of first impression for the Fifth Circuit concerning the availability of a remedy for a COBRA notice violation.  The court determined that payment of all medical expenses is compensatory damages which is not available under ERISA Section 502(a)(3).  But, a penalty is available under Section 502(c)(1) and the court could “discern no barrier to the court awarding the amount of [the participant’s] medical expenses as a penalty.”  The court remanded the case to the district court to determine whether to award a penalty and the amount of such penalty.
Continue Reading Circuit Courts Tackle Issues of First Impression and Preemption