<nobr>Sep 24, 2007</nobr>

ERIC Submits Amicus Brief in Key Employee Benefit Case

LaRue v. DeWolff, Boberg & Associates

ERIC September 11 submitted to the Supreme Court an amicus brief on behalf of the respondents in the upcoming case LaRue v. DeWolff, Boberg & Associates. The Supreme Court in June granted a petition for certiorari in LaRue (ERIC filed a memorandum with the Solicitor urging that certiorari was not warranted). The Court's 2007-2008 term begins on the first Monday in October, and its decision in LaRue could have enormous significance for employers.

LaRue involves an individual's claim for damages that allegedly were incurred by his account in a defined contribution plan resulting from a plan fiduciary's failure to carry out the participant's investment instructions. The U.S. Court of Appeals for the 4th Circuit held that the participant did not have a cause of action under ERISA section 502(a)(2) or (3), finding that a recovery under section 502(a)(2) must inure to the benefit of the plan as a whole, whereas the participant was seeking a recovery solely for his personal benefit, and because section 502(a)(3) (which authorizes actions for equitable relief) does not authorize an action to recover compensatory damages. The participant did not make a claim for benefits under section 502(a)(1).

ERIC argues in the brief that the petitioner has illegitimately recast a claim for plan benefits as a claim for breach of fiduciary duty, and that his claim to recover benefits falls within the scope of section 502(a)(1)(B). Many plan participants and beneficiaries with similar claims have filed actions under section 502(a)(1)(B) to enforce their claims, and have been awarded relief, including monetary relief, to make up for the plan's failure to provide the benefits to which the claimant was entitled under the terms of the plan.


Websites:

ERIC Amicus Brief

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