Participants without a remedy: Varity Corporation v. Howe

Article Abstract:

The US Supreme Court has granted certiorari in Varity Corp. v. Howe to determine if individuals can recover for breach of fiduciary duty. The US Courts of Appeals for the 9th and 11th Circuits have not permitted such a recovery, while other circuits have either paved the way or implicitly allowed such a recovery. An 8th Circuit case allowing such recovery is the one before the court. In addition to this issue, the court will decide whether an employer is guilty of breach of fiduciary duty for failing to reveal that employee benefits will at some future point be terminated when the employer has reserved the right to terminate an employee plan.

Exclusive and concurrent legislative powers, Preemption (Legislative power), Fiduciary duties

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Should a participant have the right to a jury trial in actions brought under ERISA section 502(a)(1)(B)?

Article Abstract:

The US Supreme Court's decision in Mertens v. Hewitt Associates, Inc. would appear to suggest that the right to a jury trial attaches to all ERISA actions in which legal remedies are sought, but certain actions under ERISA should not provide for this right because they are actions in equity. In Firestone Tire & Rubber Co. v. Bruch, the US Supreme Court found that review of the plan administrator's exercise of discretion should be based on trust law. At least in cases similar to Firestone, legal remedies should be found unavailable and no right to trial by jury should attach.

Laws, regulations and rules, Qualified benefit plans, Right to trial by jury

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In the courthouse that closed Microsoft's window: virtual reality or virtual anarchy?

Article Abstract:

The Ninth Circuit failed to address the most significant issues in the Microsoft worker classification case. Moreover, it is unclear what has actually been decided by the majority of the full 11-judge panel. The main issue concerned whether workers could be excluded from fringe benefits by mutual agreement, but that issue was mooted by the majority opinion. The worker classification issue was not considered either.

Microsoft Corp., MSFT

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