Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Category Archives: Fiduciary Liability/ERISA

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Supreme Court Agrees to Hear “Continuing Violation” ERISA Case

Posted in Fiduciary Liability/ERISA
The U.S. Supreme Court has agreed to hear a closely-watched ERISA case, Tibble v. Edison International.  The court has limited its grant to the question: [w]hether a claim that ERISA plan fiduciaries breached their duty of prudence by offering  higher-cost retail-class mutual funds to plan participants, even though identical lower-cost institution-class mutual funds were available,… Continue Reading

Broadly Worded Securities Exclusion Does Not Unambiguously Bar Coverage for ERISA Lawsuits

Posted in Bad faith/duty to settle, Fiduciary Liability/ERISA
Applying Nevada law, a federal district court has held that a broadly worded securities exclusion does not unambiguously bar coverage for underlying Employee Retirement Income Security Act (ERISA) lawsuits alleging that the insured company breached its fiduciary duties by failing to explain the risks associated with investing in the company via an employee retirement plan. … Continue Reading

SCOTUS Closes One Door but Opens Another in ERISA Stock Drop Cases

Posted in Fiduciary Liability/ERISA
The Supreme Court of the United States on Wednesday rejected the so-called “Moench presumption” that investment by an ESOP in company stock is prudent unless the company is on the brink of collapse.  Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (June 25, 2014).  The court determined that ESOP fiduciaries are not entitled to any special… Continue Reading