Court Reconsiders Remanded Benefit Case
The Seventh Circuit Court of Appeals recently granted disability benefits to a former employee of Wal-Mart Stores Inc. who had been turned down for coverage twice.
McCutchen may influence other court decisions
The recent 3rd U.S. Circuit Court of Appeals ruling in U.S. Airways, Inc. v. McCutchen, 2011 U.S.App.LEXIS 22883 (3d Cir. Nov. 16, 2011) dealt with the question of whether the equitable doctrine of unjust enrichment could be used to mitigate an ERISA benefit plan’s claim for reimbursement. McCutchen involved a claim brought by a medical […]
A Crucial Distinction Exists in the Types of Plans
An issue that never seems to go away is where courts should draw the line between an employee benefit plan and insurance coverage purchased by an individual through an arrangement made available by an employer.
Determining When a Cause of Action Accrues
One of the most confusing aspects of ERISA litigation is the determination of when a cause of action accrues. As the defendant learned to its detriment in’ Withrow v. Bache Halsey Stuart Shield Inc. Salary Protection Plan, 2011 U.S.App.LEXIS 17526 (9th Cir. August 23, 2011), the failure to effectively trigger an accrual of a cause of action prevented a statute of limitations from running for about 25 years. The case involved a stockbroker, Valerie Withrow, who became employed by Bache (now Prudential Securities) in 1979
Courts Consider Who Can Be Sued as the Defendant
A simple issue that has nonetheless confounded the courts in Employee Retirement Income Security Act (ERISA) benefits litigation is the question of who may be sued as a defendant.
Converting to cash balance plans can be tricky
Pension plans in the United States have undergone a dramatic transformation over the past 30 years. The traditional defined-benefit plan which offers an annuity for a stated amount based on salary and years of service has been virtually eliminated and replaced by defined-contribution plans, popularly known as the “401(k) plan,” where the employee contributes a […]