Employee Benefits

Lawsuit Failed to Shed Light on New Pension Maneuver

Some companies are moving obligations for executive benefits into rank-and-file pension plans in a move that allows them to immediately deduct contributions. The Wall Street Journal reports that the practice is “a dubious use of tax law” that could drain assets from pension plans and make them more likely to…

Aug 4, 2008 4:02 PM CDT

Supreme Court Favors ERISA Claimant Who Alleged Administrator Conflict

The U.S. Supreme Court has ruled an insurer that administers an employee benefits plan has a conflict of interest when it has the dual role of determining whether an employee is eligible for benefits and paying the benefits out of its own pocket. The majority opinion (PDF posted by SCOTUSblog)…

Jun 19, 2008 2:24 PM CDT

DOJ Opinion OKs Social Security Benefits for Gay Couple’s Child

A Justice Department legal opinion says federal law does not bar the Social Security Administration from paying benefits to the nonbiological child of a woman who entered into a civil union in Vermont. The October opinion (PDF), released on June 9, says the Defense of Marriage Act, which bars federal…

Jun 18, 2008 1:01 PM CDT

$11.2M Deal Covers Error in Enron Settlement Payout

Enron employees who lost their retirement cash when the company collapsed were disappointed a second time when it was revealed that a company distributing a $218 million settlement payout got the first distribution wrong. Additional payouts were left in limbo as lawyers argued who should be held responsible. Now the…

Mar 14, 2008 3:47 PM CDT

Judge Allows Eating-Disorder Insurance Suit

A New Jersey judge has refused to dismiss a lawsuit seeking better insurance coverage for eating disorders. The suit claims Aetna Inc. is improperly classifying eating disorders as a mental illness with no biological basis, the New Jersey Law Journal reports. The classification allows the insurer to limit coverage under…

Feb 29, 2008 1:48 PM CST

Court’s 401(k) Ruling Suggests a ‘Next Frontier’ of ERISA Litigation

Lawyers who defend pension plan administrators are buoyed by a concurrence by the chief justice in yesterday’s U.S. Supreme Court decision allowing lawsuits by individuals against their 401(k) plans. The plaintiff, James LaRue, claims administrators twice ignored instructions to move his money to a more lucrative fund, costing him $150,000.…

Feb 21, 2008 2:31 PM CST

Supreme Court Allows Lawsuit Alleging Mishandled 401(k)

Updated: The U.S. Supreme Court ruled today that an employee who says he lost $150,000 because of a mishandled 401(k) plan may sue the administrators for a breach of fiduciary duty, SCOTUSblog reports. The Associated Press reports that the decision “has implications for 50 million workers with $2.7 trillion invested…

Feb 20, 2008 4:52 PM CST

Court Accepts ERISA Case Involving Pension Rights After Divorce

The U.S. Supreme Court has agreed to decide the validity of a divorcing spouse’s waiver of a right to the other’s pension benefits under the Employee Retirement Income Security Act, SCOTUSblog reports. The New Orleans-based 5th U.S. Circuit Court of Appeals had ruled (PDF) in the case, Kennedy v. Plan…

Feb 19, 2008 6:04 PM CST

N.J. Ethics Opinion Allows Ghostwritten Pleadings for Indigent Clients

A New Jersey ethics opinion says lawyers may ethically draft pleadings for litigants without telling the court—in limited circumstances. Opinion 713 by the New Jersey Supreme Court’s Advisory Committee on Professional Ethics says lawyers may ghostwrite pleadings to help someone who can’t afford a lawyer or as part of a…

Jan 29, 2008 1:06 PM CST

Law’some Gifts!

The law is a jealous mistress, making it tough to find time to do holiday shopping. Here are our gift ideas for clients and colleagues—both naughty and nice.

Dec 1, 2007 8:25 PM CST

Supreme Court Likely to Allow Individual’s 401(k) Suit

The U.S. Supreme Court appears likely to allow a lawsuit against the administrators of a 401(k) plan accused of causing an individual’s $150,000 loss, the New York Times reports. The issue in LaRue v. DeWolff, Boberg & Associates Inc. is whether the Employee Retirement Income Security Act allows suits for…

Nov 27, 2007 1:28 PM CST

Court Considers Right to Sue for Mishandled 401(k)

Three justices from the U.S. Supreme Court’s liberal wing appeared sympathetic today to arguments on behalf of a man who lost $150,000 in his 401(k) plan. James LaRue claims he lost the money because administrators of his 401(k) retirement plan twice failed to follow his direction to move the money…

Nov 26, 2007 6:59 PM CST

Health Plans More Aggressive in Seeking Legal Recoveries, Thanks to High Court

Some people who are injured and receive a settlement or verdict are getting a big surprise: More litigation from the health plan that paid their benefits and now wants the money back. Employee health plans are getting more aggressive about enforcing subrogation clauses that permit recovery of the money, buoyed…

Nov 20, 2007 11:55 AM CST

Taking On the Job

The court weighs worker rights in age bias, benefits suits

Nov 1, 2007 9:02 PM CDT

Dead, Cautious Clients May Spoil High Court Appeals

One client whose balloon catheter burst later died, but his lawyer sought a U.S. Supreme Court appeal without knowing it. Another client who sued the administrator of a 401(k) plan withdrew his money from the account at issue. And now Supreme Court appeals filed in their names could be tossed.…

Sep 20, 2007 11:59 AM CDT