You are on page 1of 2

C:\EB Info\Fiduciary issues\Supreme Court Considers ERISA LaRue v. deWolff, Boberg & Assoc 502(a)(2) & (3) .

pdf

® A report
PROSKAUER ROSE LLP
Client for clients
and friends

Alert of the Firm June 2007

Åçìêí=ÇÉíÉêãáåÉÇ=íÜ~í=i~oìÉÛë=Åä~áã=ëçìÖÜí=åçíÜáåÖ
U.S. Supreme Court ãçêÉ=íÜ~å=áãéÉêãáëëáÄäÉ=ãçåÉí~êó=Ç~ã~ÖÉë=ÄÉÅ~ìëÉ
íÜÉ=ãçåÉí~êó=êÉäáÉÑ=ëçìÖÜí=Äó=i~oìÉ=ï~ë=åçí=áå=íÜÉ
To Consider Available Ñçêã=çÑ=ãçåÉó=íÜ~í=~äêÉ~Çó=ÄÉäçåÖÉÇ=íç=Üáã=Äìí=ê~íÜÉê
ï~ë=áå=íÜÉ=Ñçêã=çÑ=äçëí=áåîÉëíãÉåí=çééçêíìåáíáÉëK
Remedies Under ERISA
lå=gìåÉ=NUI=OMMTI=íÜÉ=rKpK=pìéêÉãÉ=`çìêí=Öê~åíÉÇ Fourth Circuit’s Decisions
ÅÉêíáçê~êá áå=íÜÉ=Å~ëÉ=çÑ=i~oìÉ=îK=aÉtçäÑÑI=_çÄÉêÖ=C lå=~ééÉ~äI=i~oìÉ=Ñçê=íÜÉ=Ñáêëí=íáãÉ=~ííÉãéíÉÇ=íç=~ëëÉêí
^ëëçÅá~íÉëI=fåÅKI=kçK=MS=`áîK=URSI=íÜÉêÉÄó=~ÖêÉÉáåÖ=íç ~=Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEOF=çÑ=bofp^I=ïÜáÅÜ
ÅçåëáÇÉê=Üçíäó=ÅçåíÉëíÉÇ=áëëìÉë=ëìêêçìåÇáåÖ=íÜÉ ~ìíÜçêáòÉë=~=Åáîáä=~Åíáçå=Äó=~=é~êíáÅáé~åíI=ÄÉåÉÑáÅá~êó=çê
ëÅçéÉ=çÑ=êÉäáÉÑ=~î~áä~ÄäÉ=íç=QMNEâF=éä~å=é~êíáÅáé~åíë ÑáÇìÅá~êó=íç=êÉÅçîÉê=éä~å=äçëëÉë=êÉëìäíáåÖ=Ñêçã=~=ÄêÉ~ÅÜ
ìåÇÉê=íÜÉ=bãéäçóÉÉ=oÉíáêÉãÉåí=fåÅçãÉ=pÉÅìêáíó=^Åí çÑ=ÑáÇìÅá~êó=ÇìíóK==qÜÉ=cçìêíÜ=`áêÅìáí=`çìêí=çÑ=^ééÉ~äë
çÑ=NVTQ=Ebofp^FK==aÉéÉåÇáåÖ=çå=íÜÉ=é~íÜ=ÅÜçëÉåI êÉàÉÅíÉÇ=íÜáë=~êÖìãÉåíI=ÜçäÇáåÖ=íÜ~íI=íÜ~í=ÉîÉå=áÑ=íÜÉ
íÜÉ=pìéêÉãÉ=`çìêí=ã~ó=êÉëçäîÉ=íÜÉ=áëëìÉ=çÑ=ïÜÉíÜÉê Åä~áã=ïÉêÉ=åçí=ï~áîÉÇI=áí=ïçìäÇ=åçí=ÄÉ=~Åíáçå~ÄäÉ
ëìÅÜ=é~êíáÅáé~åíë=Å~å=çÄí~áå=ãçåÉí~êó=êÉäáÉÑ=Ñçê ÄÉÅ~ìëÉ=êÉÅçîÉêó=ìåÇÉê=íÜáë=ëìÄëÉÅíáçå=ãìëí=ÚáåìêÉ=íç
áåîÉëíãÉåí=äçëëÉë=ìåÇÉê=pÉÅíáçå=RMOE~FEOF=çÑ=bofp^I íÜÉ=ÄÉåÉÑáí=çÑ=íÜÉ=éä~å=~ë=~=ïÜçäÉIÛ=åçí=íç=é~êíáÅìä~ê
ïÜáÅÜ=ÖçîÉêåë=Åä~áãë=Ñçê=ÑáÇìÅá~êó=ÄêÉ~ÅÜ=çå=ÄÉÜ~äÑ éÉêëçåë=ïáíÜ=êáÖÜíë=ìåÇÉê=íÜÉ=éä~åIÒ=~åÇ=i~oìÉ=ï~ë
çÑ=éä~åë=~åÇ=íÜÉáê=é~êíáÅáé~åíëX=ìåÇÉê=pÉÅíáçå ëÉÉâáåÖ=çåäó=éÉêëçå~ä=êÉÅçîÉêó=EÅáíáåÖ=j~ëëK=jìíK=iáÑÉ
RMOE~FEPF=çÑ=bofp^I=ïÜáÅÜ=~ìíÜçêáòÉë=ëìáíë=Ñçê fåëK=`çK=îK=oìëëÉääI=QTP=rKpK=NPQI=NQM=ENVURFFK==få=ëç
Éèìáí~ÄäÉ=êÉäáÉÑ=íç=êÉãÉÇó=ëí~íìíçêó=îáçä~íáçåëX=çê êìäáåÖI=íÜÉ=`çìêí=ÇáëíáåÖìáëÜÉÇ=íÜçëÉ=Å~ëÉë=íÜ~í
ìåÇÉê=åÉáíÜÉê=ëí~íìíçêó=éêçîáëáçåK éÉêãáííÉÇ=áåÇáîáÇì~ä=~ÅÅçìåí=éä~å=é~êíáÅáé~åíë=íç=ëìÉI
ÉáíÜÉê=çå=ÄÉÜ~äÑ=çÑ=~=Åä~ëë=çê=çå=ÄÉÜ~äÑ=çÑ=íÜÉ=éä~åI
ìåÇÉê=pÉÅíáçå=RMOE~FEOFI=êÉ~ëçåáåÖ=íÜ~í=áå=íÜçëÉ=Å~ëÉë
District Court’s Decision íÜÉ=éçíÉåíá~ä=êÉÅçîÉêó=ï~ë=åçí=äáãáíÉÇ=íç=íÜÉ
i~oìÉ=ï~ë=~=é~êíáÅáé~åí=áå=Üáë=ÉãéäçóÉêÛë=QMNEâF áåÇáîáÇì~ä=éä~áåíáÑÑ=ïÜç=ÄêçìÖÜí=íÜÉ=ä~ïëìáíK
êÉíáêÉãÉåí=ë~îáåÖë=éä~å=ïÜÉêÉ=ÜÉ=ï~ë=éÉêãáííÉÇ=íç
ã~å~ÖÉ=Üáë=çïå=~ÅÅçìåí=Äó=ëÉäÉÅíáåÖ=Ñêçã=~=ãÉåì=çÑ
qìêåáåÖ=íç=i~oìÉÛë=Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEPFI=íÜÉ
áåîÉëíãÉåí=çéíáçåëK==i~oìÉÛë=Åçãéä~áåí=~ääÉÖÉÇ=íÜ~í
`çìêí=êÉàÉÅíÉÇ=i~oìÉÛë=~êÖìãÉåí=íÜ~í=íÜÉ=ã~âÉ
íÜÉ=éä~å=ÑáÇìÅá~êáÉë=ÄêÉ~ÅÜÉÇ=íÜÉáê=ÑáÇìÅá~êó=ÇìíáÉë=Äó
ïÜçäÉÒ=êÉäáÉÑ=ÜÉ=ëçìÖÜí=ÅçåëíáíìíÉÇ=~=Ñçêã=çÑ=çíÜÉê
Ñ~áäáåÖ=íç=Å~êêó=çìí=Üáë=áåîÉëíãÉåí=áåëíêìÅíáçåëI=~åÇ
~ééêçéêá~íÉ=Éèìáí~ÄäÉ=êÉäáÉÑÒ=ïáíÜáå=íÜÉ=ãÉ~åáåÖ=çÑ
íÜ~í=~ë=~=êÉëìäí=Üáë=áåíÉêÉëí=áå=íÜÉ=éä~å=ï~ë=ÇÉéäÉíÉÇ=Äó
pÉÅíáçå=RMOE~FEPFK==få=~ÇÇáíáçåI=íÜÉ=`çìêí=êÉàÉÅíÉÇ
~ééêçñáã~íÉäó=ANRMIMMMK==i~oìÉ=~ëëÉêíÉÇ=Üáë=éêáåÅáé~ä
i~oìÉÛë=~êÖìãÉåí=íÜ~í=Üáë=Åä~áã=ï~ë=~å~äçÖçìë=íç=~
Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEPFI=ïÜáÅÜ=~ìíÜçêáòÉë=~å
Åçããçå=ä~ï=ÄêÉ~ÅÜ=çÑ=íêìëí=~Åíáçå=Äó=~=ÄÉåÉÑáÅá~êó
~Åíáçå=Äó=~=é~êíáÅáé~åíI=ÄÉåÉÑáÅá~êóI=çê=ÑáÇìÅá~êó=íç
ëÉÉâáåÖ=íç=êÉÅçîÉê=äçëí=íêìëí=éêçÑáíë=Ô=~=Åä~áã=íÜ~í=íêìëí
çÄí~áå=çíÜÉê=~ééêçéêá~íÉ=Éèìáí~ÄäÉ=êÉäáÉÑKÒ==OV=rKpK`K
íêÉ~íáëÉë=Ü~îÉ=ä~ÄÉäÉÇ=~ë=éêçîáÇáåÖ=Éèìáí~ÄäÉÒ=êÉäáÉÑK
¬=NNPOE~FEPFK=
få=ëç=ÜçäÇáåÖI=íÜÉ=`çìêí=ÅçåÅäìÇÉÇ=íÜ~í=ëÅçéÉ=çÑ=êÉäáÉÑ
~î~áä~ÄäÉ=ìåÇÉê=pÉÅíáçå=RMOE~FEPF=ÇçÉë=åçí=áåÅäìÇÉ=~ää
qÜÉ=ÇáëíêáÅí=Åçìêí=Öê~åíÉÇ=ÇÉÑÉåÇ~åíëÛ=ãçíáçå=Ñçê êÉãÉÇáÉë=íÜ~í=~å=Éèìáíó=Åçìêí=ÅçìäÇ=Ü~îÉ=~ï~êÇÉÇ=Äó
àìÇÖãÉåí=çå=íÜÉ=éäÉ~ÇáåÖëI=ÑáåÇáåÖ=íÜ~í=i~oìÉ=Ñ~áäÉÇ=íç îáêíìÉ=çÑ=áíë=àìêáëÇáÅíáçå=çîÉê=íÜÉ=Åä~áã=~í=áëëìÉK
ëí~íÉ=~=ÅçÖåáò~ÄäÉ=Åä~áã=Ñçê=~ééêçéêá~íÉ=Éèìáí~ÄäÉ
êÉäáÉÑÒ=ìåÇÉê=pÉÅíáçå=RMOE~FEPFK==oÉäóáåÖ=çå=íÜÉ
i~oìÉ=íÜÉêÉ~ÑíÉê=éÉíáíáçåÉÇ=Ñçê=êÉÜÉ~êáåÖ=Éå=Ä~åÅI=~åÇ
pìéêÉãÉ=`çìêíÛë=ÇÉÅáëáçå=áå=dêÉ~íJtÉëí=iáÑÉ=~åÇ=^ååìáíó
ï~ë=ëìééçêíÉÇ=áå=íÜÉëÉ=ÉÑÑçêíë=Äó=íÜÉ=pÉÅêÉí~êó=çÑ
fåëK=`çK=îK=håìÇëçåI=RPQ=rKpK=OMQ=EOMMOFI=íÜÉ=ÇáëíêáÅí
i~ÄçêI=ïÜç=ÑáäÉÇ=~å=~ãáÅìë=ÄêáÉÑK==qÜÉ=cçìêíÜ=`áêÅìáí=ÇÉåáÉÇ EááF=íïç=çÑ=íÜÉ=gìëíáÅÉë=ïÜç=àçáåÉÇ=áå=íÜÉ=ã~àçêáíó=ÇÉÅáëáçå
i~oìÉÛë=ãçíáçå=Ñçê=êÉÜÉ~êáåÖI=Äìí=ÅçåëáÇÉêÉÇ=íÜÉ=pÉÅêÉí~êóÛë Ü~îÉ=ëáåÅÉ=ÄÉÉå=êÉéä~ÅÉÇK==tÜÉíÜÉê=çê=åçí=íÜÉ=åÉï=`çìêí
~êÖìãÉåíëK==få=êÉëéçåëÉ=íç=íÜçëÉ=~êÖìãÉåíëI=íÜÉ=`çìêí ïáää=~ÇÇêÉëë=~ää=íÜÉ=áëëìÉë=éêÉëÉåíÉÇ=êÉã~áåë=íç=ÄÉ=ëÉÉåK==qÜÉ
ÅçåÅäìÇÉÇ=íÜ~í=íÜ~í=íÜÉêÉ=ï~ë=åçíÜáåÖ=áå=íÜÉ=ëí~íìíÉ=íÜ~í `çìêí=ÅçìäÇI=Ñçê=Éñ~ãéäÉI=ÅçåÅäìÇÉ=íÜ~í=i~oìÉ=ï~áîÉÇ=Üáë
éêçîáÇÉÇ=Ñçê=~å=áåÇáîáÇì~ä=Åä~áã=íç=ÄÉ=~ëëÉêíÉÇ=Ñçê=íÜÉ Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEOFI=äáãáí=íÜÉ=ëìÄëí~åÅÉ=çÑ=áíë
ÄÉåÉÑáí=çÑ=íÜÉ=éä~åX=~åÇ=íÜ~íI=Åçåíê~êó=íç=íÜÉ=pÉÅêÉí~êóÛë ÇÉÅáëáçå=íç=i~oìÉÛë=Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEPFI=~åÇ=êìäÉ
~ëëÉêíáçåëI=áíë=ÜçäÇáåÖ=íç=íÜ~í=ÉÑÑÉÅí=ÇáÇ=åçí=ÅêÉ~íÉ=~å=áåíÉêJ ïáíÜ=êÉëéÉÅí=íç=íÜ~í=Åä~áã=çå=å~êêçï=ÖêçìåÇëK
ÅáêÅìáí=ÅçåÑäáÅí=ëáåÅÉ=~ää=çÑ=íÜÉ=Å~ëÉë=ÅáíÉÇ=Äó=íÜÉ=pÉÅêÉí~êó
áåîçäîÉÇ=~=ëìÄëÉí=çÑ=é~êíáÅáé~åíë=~åÇ=ÄÉåÉÑáÅá~êáÉë=ïÜç
~ääÉÖÉÇ=éä~å=äçëëÉëI=ïÜÉêÉ~ë=íÜáë=Å~ëÉ=áåîçäîÉÇ=~å=áåÇáîáÇì~ä
éä~áåíáÑÑ=~ääÉÖáåÖ=áåÇáîáÇì~ä=äçëëÉëK

Supreme Court Grant of Certiorari
i~oìÉ=íÜÉêÉ~ÑíÉê=éÉíáíáçåÉÇ=Ñçê=ÅÉêíáçê~êá ÄÉÑçêÉ=íÜÉ=pìéêÉãÉ
`çìêíK==få=êÉëéçåëÉ=íç=íÜÉ=éÉíáíáçåI=íÜÉ=pìéêÉãÉ=`çìêí
áåîáíÉÇ=íÜÉ=pçäáÅáíçê=dÉåÉê~ä=íç=ÑáäÉ=~=ÄêáÉÑ=ÉñéêÉëëáåÖ=íÜÉ
îáÉïë=çÑ=íÜÉ=råáíÉÇ=pí~íÉëK==qÜÉ=pçäáÅáíçê=dÉåÉê~ä=çéáåÉÇ
íÜ~í=íÜÉ=cçìêíÜ=`áêÅìáí=ÉêêÉÇ=áå=êÉàÉÅíáåÖ=ÄçíÜ=íÜÉ=pÉÅíáçå
RMOE~FEOF=Åä~áã=~åÇ=íÜÉ=pÉÅíáçå=RMOE~FEPF=Åä~áãI=~åÇ
çÄëÉêîÉÇ=íÜ~í=íÜÉ=Åçìêíë=çÑ=~ééÉ~äë=ïÉêÉ=ÇáîáÇÉÇ=ïáíÜ=êÉëéÉÅí
íç=ÄçíÜ=áëëìÉëK==cìêíÜÉêãçêÉI=íÜÉ=pçäáÅáíçê=dÉåÉê~ä
ÅçåíÉåÇÉÇ=íÜ~íI=áå=äáÖÜí=çÑ=bofp^Ûë=Äêç~Ç=éêÉÉãéíáçå
éêçîáëáçåI=íÜÉ=cçìêíÜ=`áêÅìáíÛë=ÇÉÅáëáçå=íÜêÉ~íÉåë=íç=äÉ~îÉ NEW YORK  LOS ANGELES  WA S H I N G T O N
ã~åó=éä~å=é~êíáÅáé~åíë=ïáíÜçìí=~åó=ÉÑÑÉÅíáîÉ=êÉÇêÉëë=Ñçê
BOSTON  B O C A R AT O N  N E WA R K
ÄêÉ~ÅÜÉë=çÑ=bofp^Ûë=ÑáÇìÅá~êó=ÇìíáÉëKÒ
NEW ORLEANS  PA R I S
táíÜ=êÉëéÉÅí=íç=i~oìÉÛë=Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEOFI=íÜÉ
pçäáÅáíçê=dÉåÉê~ä=~êÖìÉÇ=íÜ~í=áí=ï~ë=áêêÉäÉî~åí=ïÜÉíÜÉê=íÜÉ=ëìáí
áë=ÄêçìÖÜí=Äó=~=Åä~ëë=çê=ëìÄëÉí=çÑ=éä~å=é~êíáÅáé~åíë=ê~íÜÉê=íÜ~å Client Alert
~=ëáåÖäÉ=é~êíáÅáé~åí=ÄÉÅ~ìëÉI=x~zäíÜçìÖÜ=íÜÉ=åìãÄÉê=çÑ Proskauer Rose's Employee Benefits Litigation Group is a
~ÑÑÉÅíÉÇ=é~êíáÅáé~åíë=ÇáÑÑÉêëI=íÜÉ=å~íìêÉ=çÑ=íÜÉ=êÉäáÉÑ=Ô=íÜÉ significant and rapidly growing component of the Firm's
é~óãÉåí=çÑ=ãçåÉó=íç=íÜÉ=éä~å Ô=áë=íÜÉ=ë~ãÉ=ïÜÉíÜÉê=íÜÉ nationally-renowned Labor and Employment Law
êÉÅçîÉêó=áë=~ääçÅ~íÉÇ=íç=íÜÉ=~ÅÅçìåí=çÑ=çåÉ=é~êíáÅáé~åíI=~ Department, which has nearly 175 attorneys. The Group's
capabilities were recently boosted by the addition of a
åìãÄÉê=çÑ=é~êíáÅáé~åíëI=çê=ÉîÉêó=é~êíáÅáé~åí=áå=íÜÉ=éä~åKÒ==^ë superb team of attorneys led by the renowned ERISA
Ñçê=íÜÉ=Åä~áã=ìåÇÉê=pÉÅíáçå=RMOE~FEPFI=íÜÉ=pçäáÅáíçê=dÉåÉê~ä litigator, Howard Shapiro, the Chair of the Labor and
~êÖìÉÇI=áåíÉê=~äá~I=íÜ~í=áå=~å=~Åíáçå=Ñçê=ÄêÉ~ÅÜ=çÑ=íêìëí=Éèìáíó Employment Law Section of the ABA. With this addition,
éêçîáÇÉÇ=~=î~êáÉíó=çÑ=êÉãÉÇáÉëI=áåÅäìÇáåÖ=~=ëìêÅÜ~êÖÉÒ=çå=íÜÉ the Group - with nearly 30 litigators nationwide - is one
íêìëíÉÉ=áå=íÜÉ=~ãçìåí=êÉèìáêÉÇ=íç=êÉëíçêÉ=íÜÉ=î~äìÉë=çÑ=íÜÉ of the premier firms in defending complex and class
action employee benefits litigations. For more
íêìëí=Éëí~íÉ=~åÇ=íêìëí=ÇáëíêáÄìíáçåë=íç=ïÜ~í=íÜÉó=ïçìäÇ=Ü~îÉ information about this practice area, contact:
ÄÉÉå=áÑ=íÜÉ=íêìëí=Ü~Ç=ÄÉÉå=éêçéÉêäó=~ÇãáåáëíÉêÉÇKÒ==qÜìëI
~ÅÅçêÇáåÖ=íç=íÜÉ=pçäáÅáíçê=dÉåÉê~äI=~=ëìáí=~Ö~áåëí=~=ÑáÇìÅá~êó=íç
êÉÅçîÉê=äçëëÉë=Å~ìëÉÇ=Äó=~=ÄêÉ~ÅÜ=çÑ=ÑáÇìÅá~êó=Çìíó=åÉÅÉëë~êáäó Myron D. Rumeld
212.969.3021 – mrumeld@proskauer.com
ëÉÉâë=Éèìáí~ÄäÉ=êÉäáÉÑÒ=ìåÇÉê=pÉÅíáçå=RMOE~FEPFK
Russell L. Hirschhorn
212.969.3286 – rhirschhorn@proskauer.com
Implications for Plan Sponsors and Fiduciaries
qÜÉ=pìéêÉãÉ=`çìêíÛë=Öê~åíáåÖ=çÑ=ÅÉêíáçê~êá ïáää=Éå~ÄäÉ=íÜÉ Howard Shapiro
504.310.4085 – howshapiro@proskauer.com
`çìêíI=áÑ=áí=ÅÜççëÉëI=íç=êÉëçäîÉ=ã~åó=çÑ=íÜÉ=ëáÖåáÑáÅ~åí=áëëìÉë
íÜ~í=Ü~îÉ=ÇáîáÇÉÇ=íÜÉ=~ééÉää~íÉ=~åÇ=äçïÉê=Åçìêíë=ëáåÅÉ=íÜÉ Amy Covert
pìéêÉãÉ=`çìêíÛë=ÇÉÅáëáçå=áå=dêÉ~íJtÉëíI=~åÇ=áå=é~êíáÅìä~êI 973.274.3258 – acovert@proskauer.com
íÜÉ=áëëìÉë=~ëëçÅá~íÉÇ=ïáíÜ=Åä~áãë=Äó=QMNEâF=éä~å=é~êíáÅáé~åíë
íç=êÉÅçîÉê=áåîÉëíãÉåí=äçëëÉë=êÉëìäíáåÖ=Ñêçã=~ääÉÖÉÇ=ÄêÉ~ÅÜÉë Proskauer Rose is an international law firm that handles a full spectrum of legal
çÑ=ÑáÇìÅá~êó=ÇìíóK==qÜÉ=ìåÅÉêí~áåíó=~ë=íç=Üçï=íÜÉ=`çìêí=ïáää issues worldwide.
êìäÉ=áë=ÅçãéçìåÇÉÇ=Äó=íÜÉ=Ñ~Åí=íÜ~íW==EáF=dêÉ~í=tÉëí ï~ë
ÇÉÅáÇÉÇ=RJQ=ïáíÜ=~=ëíêçåÖ=ÇáëëÉåí=Äó=gìëíáÅÉ=dáåëÄÉêÖX=~åÇ This publication is a service to our clients and friends. It is designed only to give general information on the developments actually
covered. It is not intended to be a comprehensive summary of recent developments in the law, treat exhaustively the subjects covered,
provide legal advice or render a legal opinion.
You can also visit our Website at www.proskauer.com © 2007 PROSKAUER ROSE LLP. All rights reserved. Attorney Advertising.

2