Forum
U.S. Supreme Court
Case Status
Decided
Docket Number
06-856
Term
2007 Term
Oral Argument Date
November 26, 2007
Questions Presented
1. Does §502(a)(2) of ERISA permit a participant to bring an action to recover losses attributable to his account in a “defined contribution plan” that were caused by fiduciary breach?
2. Does §502(a)(3) permit a participant to bring an action for monetary “make-whole” relief to compensate for losses directly caused by fiduciary breach (known in premerger courts of equity as “surcharge”)?
Case Updates
Supreme Court affirms expansive remedies under ERISA
February 20, 2008
The Supreme Court disagreed with NCLC, holding that a participant in a defined contribution pension plan may sue a fiduciary under ERISA when the claim is that the fiduciary breach caused an individual loss to his 401(k) plan account. The Court did not address the second issue in the case: whether an action by a plan participant against a fiduciary to recover losses caused by a breach of duty seeks “equitable relief” for purposes of ERISA Section 502(a)(3).
U.S. Chamber files amicus brief
September 11, 2007
NCLC urged the High Court to uphold a Fourth Circuit decision addressing two issues: 1) whether a participant in a defined contribution pension plan may sue to recover losses to the plan caused by a breach of fiduciary duty, even when those losses affected only the participant’s individual account; and 2) whether an action by a plan participant against a fiduciary to recover losses caused by a breach of duty seeks “equitable relief” for purposes of ERISA Section 502(a)(3). In its brief, NCLC argued that judicial expansion of ERISA remedies beyond what Congress intended would encourage more litigation, and impose unpredictable costs on employers and other plan sponsors.