July 2013

In a post from last year, I reported on how the Fifth Circuit had issued a decision In ACS Recovery Servs., Inc. v. Griffin, 676 F.3d 512, 514 (5th Cir. 2012), in which it held that an ERISA plan beneficiary and his lawyer had created a perfect settlement structure in which no one ever had enough possession or control over the substantial settlement proceeds to support an equitable remedy.

The Fifth Circuit decided that the shell game issue was “enbancworthy” and, in a May 7, 2013 decision, reversed the panel’s decision.
Continue Reading Fifth Circuit Ends “Texas Shell Game,” Holding that Plan Has an Equitable Remedy for Reimbursement

ERISA requires fiduciaries to follow a prudent person standard regarding investment decisions. For plans requiring investment in the employer’s stock, often called Employee Stock Ownership Plans, or ESOPs, courts have developed a presumption that the investment in employer stock is prudent. A recent 9th Circuit case has addressed the limits of that presumption. Harris v. Amgen, Inc., — F.3d –, 2013 WL 2397404 (9th Cir. June 4, 2013).
Continue Reading Presumption that Plan Administrator Acted Prudently Does Not Apply in Stock-Drop Case

The tough disability claims are often the ones where it is difficult or impossible to prove the medical condition with objective evidence (something that can be observed or measured). This requires the plan fiduciary to decide whether the subjective evidence is adequate. A recent decision, which found the fiduciary got it wrong, provides helpful guidance on how a fiduciary can evaluate subjective evidence without abusing its discretion.
Continue Reading Court Provides Guidance on Assessing Disability Claims Based on Subjective Evidence