Tuesday, November 13, 2007

Oral Argument Date Set for Supreme Court LaRue ERISA Case

4united_states_supreme_court_112904 The Legal Information Institute (LII) of Cornell Law School is reporting that oral argument has been set in the ERISA remedies case of LaRue v. DeWolff, Boberg & Assoc. (06-856) for Monday, November 26th (the Monday after the Thanksgiving Holiday).

At stake, the scope of remedies available in the 401(k) plan context under ERISA Sections 502(a)(2) and 502(a)(3).  LII writes:

James LaRue, an employee of the management consulting firm DeWolff, Bobert & Associates, sued his employer for improper management of his 401(k) pension plan. Under DeWolff's pension plan, LaRue could choose among a variety of investment options for his individual account. In his suit, LaRue alleged that DeWolff failed to follow his investment instructions. LaRue sued under sections 502(a)(2) and 502(a)(3) of the Employee Retirement Income Security Act (ERISA).

The Fourth Circuit held that neither section authorized LaRue's claim because it was an individual claim and because LaRue sought compensatory damages. LaRue argues that his claim benefits the plan as a whole rather than himself individually, and that he seeks equitable relief rather than compensatory damages. The outcome of this case will determine whether an individual can use these provisions to sue an employer for improper management of a pension fund.

Our previous coverage of this important ERISA case can be found here, here, and here. The Solicitor General sides with the plaintiffs in this case.

PS

https://lawprofessors.typepad.com/laborprof_blog/2007/11/oral-argument-d.html

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» LaRue v DeWolff, Broberg and the Concept of Administration Risk in ERISA Plans from Boston ERISA Law Blog
Oral argument at the Supreme Court is scheduled for Monday in LaRue v DeWolff, Broberg Associates, which presents the technical question of whether a loss to only one participants 401(k) plan is actionable as a breach of fiduciary duty... [Read More]

Tracked on Nov 21, 2007 8:02:17 AM

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