Lexis Legal News : Mealey's ERISA : Lawsuit Filings, Litigation, Settlements, Verdicts and Court News

Mealey's ERISA

February 20, 2019
Split 6th Circuit: Hoover Retirees’ Health Benefits Aren’t Unalterable

CINCINNATI — A trial court erred when it ruled that lifetime health care benefits promised to Hoover Co. retirees in multiple collective bargaining agreements (CBAs) were unalterable as the obligation ended when the last CBA ended, a divided Sixth Circuit U.S. Court of Appeals panel ruled Feb. 15 (Joseph Zino, et al. v. Whirlpool Corp., et al., Nos. 17-3851/3860, 6th Cir., 2019 U.S. App. LEXIS 4648).
February 20, 2019
Court Did Not Err In Finding Hilton Was Properly Complying With Permanent Injunction

WASHINGTON, D.C. — The District of Columbia Circuit U.S. Court of Appeals on Feb. 15 held that a lower federal court did not abuse its discretion when it found that Hilton Hotels Corp., the Hilton Hotels Retirement Plan and members of the plan's committees were adequately complying with their current duties under a permanent injunction and that it would no longer exercise supervisory jurisdiction over a class action in which a pension plan was found to have violated Employee Retirement Income Security Act's anti-backloading provision (Jamal J. Kifafi v. Hilton Hotels Retirement Plan, et al., No. 16-7002, D.C. Cir., 2019 U.S. App. LEXIS 4724).
February 19, 2019
U.S. High Court Denies USC’s Petition In Retirement Plan Excessive Fees Suit

WASHINGTON, D.C. — The U.S. Supreme Court on Feb. 19 denied a petition for writ of certiorari filed by the University of Southern California (USC) seeking review of a denial of its motion to compel arbitration in a lawsuit claiming that it charged excessive fees for its 403(b) retirement plan, as well as other breaches of fiduciary duties (University of Southern California, et al. v. Allen L. Munro, et al., No. 18-703, U.S. Sup.).
February 15, 2019
Employers, Reinsurer Say They Will Seek Dismissal Of Class Action Lawsuit

BROOKLYN, N.Y. — Employers and a reinsurer of an employee benefit plan on Feb. 14 tell a New York federal judge that they intend to seek dismissal of home health aides’ class action complaint over allegations they were cheated out of lost wages and benefits (Ynes M. Gonzalez de Fuente, et al. v. Preferred Home Care of New York LLC, et al., No. 18-6749, E.D. N.Y.).
February 14, 2019
9th Circuit Denies Rehearing In Abuse Of Discretion Disability Benefits Dispute

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Feb. 12 denied a long-term disability (LTD) plan administrator’s motion to reconsider its decision that the plan administrator abused its discretion in denying LTD benefits under the plan’s any-occupation standard because the plan administrator failed to properly consider restrictions placed on the claimant to stand (Jennifer Kott v. Agilent Technologies Inc. Disability Plan, No. 17-16584, 9th Cir., 2019 U.S. App. LEXIS 4235).
February 13, 2019
Breach Of Fiduciary Claim Stands As It Relates To Deficient Process Allegations

OAKLAND, Calif. — A California federal judge on Feb. 8 partially denied a defense motion to dismiss in a suit alleging that the defendants mismanaged an employee pension benefit plan after determining that the plaintiff sufficiently alleged a breach of fiduciary duty claim based on a theory that the defendants used a deficient process when selecting a replacement investment option for the plan (Michael F. Dorman, et al. v. The Charles Schwab Corp., et al., No. 17-285, N.D. Calif.).
February 11, 2019
Federal Judge Preliminarily Approves Settlement In Duke Retirement Plan Suit

GREENSBORO, N.C. — A North Carolina federal judge on Feb. 7 granted a motion for preliminary approval of a $10.6 million class action settlement in a suit filed by participants in Duke University’s 403(b) retirement plan after concluding that the settlement is fair, reasonable and adequate (David Clark, et al. v. Duke University, et al., No. 16-1044; Kathi Lucas, et al. v. Duke University, et al., No. 18-722, M.D. N.C.).
February 11, 2019
11th Circuit Upholds Ruling Finding Woman’s Claim For Future Benefits Premature

ATLANTA — A woman’s request for a declaration from her life insurance company that she is entitled to future total disability benefits under a policy governed by the Employee Retirement Income Security Act was properly dismissed by a federal judge in Florida, an 11th Circuit U.S. Court of Appeals panel ruled Feb. 8, holding that there is no ripe claim without an adverse determination by the insurer (Theresa Peer v. Life Liberty Assurance Co., No. 18-13173, 11th Cir., 2019 U.S. App. LEXIS 3956).
February 8, 2019
Disability Insurer Must Consider Actual Duties Of Claimant’s Own Occupation

PHILADELPHIA — A disability insurer was required to consider the actual duties of a claimant’s occupation rather than the duties of the occupation as performed in the national economy because the plan clearly defined the term “own occupation” as the work the claimant was performing immediately before the onset of the disability, the Third Circuit U.S. Court of Appeals said Feb. 7 in affirming a district court’s opinion (Christopher Patterson v. Aetna Life Insurance Co., No. 17-3566, 3rd Cir., 2019 U.S. App. LEXIS 3902).
February 8, 2019
Panel Allows State Law Claims, Says Claims Do Not Relate To ERISA Plan

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeal on Feb. 6 reversed a district court’s dismissal of state law claims alleged against health insurance companies that allegedly made misrepresentations about monthly premiums after determining that the state law claims are not preempted by the Employee Retirement Income Security Act because the alleged misrepresentations were made before the issuance of the health plans and, therefore, do not relate to an ERISA plan (The Depot Inc., et al. v. Caring for Montanans Inc., et al., No. 17-35597, 9th Cir., 2019 U.S. App. LEXIS 3671).
February 7, 2019
Plan Participants Ask 7th Circuit To Reverse Dismissal Of Fiduciary Breach Claims

CHICAGO — Plan participants in a Jan. 14 brief ask the Seventh Circuit U.S. Court of Appeals to reverse a lower court’s dismissal of their lawsuit against Northwestern University Retirement Plan and the university itself for alleged violations of fiduciary duty, contending that other federal circuit courts have recognized their allegations as fiduciary breaches pursuant to the Employee Retirement Income Security Act (Laura L. Divane, et al. v. Northwestern University, et al., No. 18-2569, 7th Cir.).
February 6, 2019
Texas Federal Judge Dismisses Second Amended Complaint In ERISA Suit Against Exxon

HOUSTON — A Texas federal judge on Feb. 4 granted Exxon Mobil Corp.’s motion to dismiss a second amended class action complaint asserting that the company and its officers failed to prudently manage a defined contribution benefit plan’s assets pursuant to the Employee Retirement Income Security Act because the plaintiffs failed to show that corrective disclosures would have benefitted rather than harmed the plan (Bobby D. Fentress, et al. v. Exxon Mobil Corporation, et al., No. 16-3484, S.D. Texas, 2019 U.S. Dist. LEXIS 16934).
February 6, 2019
Class Supplements Request For Approval Of ERISA Settlement

GREENSBORO, N.C. — In a Feb. 1 supplemental brief, participants in the Duke University 403(b) retirement plan defended their proposed $10.6 million settlement with the school as “fundamentally fair and adequate” (David Clark, et al. v. Duke University, et al., No. 16-1044; Kathi Lucas, et al. v. Duke University, et al., No. 18-722, M.D. N.C.).
February 6, 2019
2nd Circuit Refuses To Stay Duty-Of-Prudence Dispute For Supreme Court Review

NEW YORK — The Second Circuit U.S. Court of Appeals on Feb. 4 denied a motion by fiduciaries of an IBM employee stock option plan (ESOP) to stay its mandate that employees plausibly asserted a duty-of-prudence claim against them under the Employee Retirement Income Security Act pending their filing of a petition for a writ of certiorari in the U.S. Supreme Court (Larry W. Jander, et al. v. Retirement Plans Committee of IBM, et al., No. 17-3518, 2nd Cir.).
February 6, 2019
1st Circuit Affirms Finding Of No Fraud On Court In Pension Plan Benefit Dispute

BOSTON — The First Circuit U.S. Court of Appeals on Jan. 25 affirmed a district court’s ruling that the defendants named in a dispute over the termination of a pension plan did not commit any “fraud on the court” that would warrant overturning the lower court’s 2009 ruling that it did not have subject matter jurisdiction to hear the suit because the pension plan was a church plan and exempt from the requirements of the Employee Retirement Income Security Act (Olga Torres, et al. v. Bella Vista Hospital Inc., et al., No. 16-2316, 1st Cir., 2019 U.S. App. LEXIS 2574).
February 5, 2019
5th Circuit Partly Reverses Ruling In Coverage Dispute Over Weight Loss Surgery

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Jan. 31 found that a health plan administrator did not abuse its discretion in the first or second internal appeal of its denial of full coverage for a health plan beneficiary’s gastric bypass surgery, a follow-up surgery and care required after she experienced complications, reversing a lower court in part (Karen A. Rittinger v. Health Alliance Life Insurance Company, et al., No. 17-20646, 5th Cir., 2019 U.S. App. LEXIS 3201).
February 5, 2019
5th Circuit Partly Reverses Ruling In Coverage Dispute Over Weight Loss Surgery

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Jan. 31 found that a health plan administrator did not abuse its discretion in the first or second internal appeal of its denial of full coverage for a health plan beneficiary’s gastric bypass surgery, a follow-up surgery and care required after she experienced complications, reversing a lower court in part (Karen A. Rittinger v. Health Alliance Life Insurance Company, et al., No. 17-20646, 5th Cir., 2019 U.S. App. LEXIS 3201).
February 1, 2019
Additional Briefing Requested On Adequacy Of Proposed Settlement With Duke University

GREENSBORO, N.C. — A North Carolina federal judge on Jan. 29 requested that participants in Duke University’s retirement plan supplement their motion for preliminary approval of a $10.6 million settlement it reached with the university in two class actions alleging excessive fees and imprudent investment funds in violation of the Employee Retirement Income Security Act to further address the adequacy of the proposed settlement (David Clark, et al. v. Duke University, et al., No. 16-1044, and Kathi Lucas, et al. v. Duke University, et al., No. 18-722, M.D. N.C.).
January 31, 2019
Split 6th Circuit: Agents Were Properly Classified As Independent Contractors

CINCINNATI — American Family Insurance Co. and its affiliates properly classified its agents as independent contractors, a split Sixth Circuit U.S. Court of Appeals panel ruled Jan. 29, reversing a trial court ruling in favor of the agents on claims that they had been misclassified and deprived of rights and protections provided under various laws, including the Employee Retirement Income Security Act (Walid Jammal, et al. v. American Family Insurance Company, et al., No. 17-4125, 6th Cir., 2019 U.S. App. LEXIS 2905).
January 31, 2019
Split 6th Circuit: Agents Were Properly Classified As Independent Contractors

CINCINNATI — American Family Insurance Co. and its affiliates properly classified its agents as independent contractors, a split Sixth Circuit U.S. Court of Appeals panel ruled Jan. 29, reversing a trial court ruling in favor of the agents on claims that they had been misclassified and deprived of rights and protections provided under various laws, including the Employee Retirement Income Security Act (Walid Jammal, et al. v. American Family Insurance Company, et al., No. 17-4125, 6th Cir., 2019 U.S. App. LEXIS 2905).