Diane Soubly Quoted in The National Law Journal "Retirement Plan Suits Gain in Federal Appellate Courts"

Diane Soubly was quoted in the August 4, 2008 issue of The National Law Journal in the article “Retirement Plan Suits Gain in Federal Appellate Courts.” The article reported on the recent 1st U.S. Circuit Court of Appeals decision that allows former employees who have redeemed retirement accounts to sue the retirement plan administrators for alleged fiduciary breaches that diminish their account payout.

Diane remarked, “This 1st Circuit decision allowing former participants to sue fiduciaries, coupled with a recent U.S. Supreme Court decision allowing participants to sue fiduciaries for alleged plan losses, may prompt courts to find such plan losses legal in nature rather than equitable and allow jury trials in ERISA cases…. It will increase the costs of defending and resolving ERISA litigation cases." She further noted that, “Although the ERISA statute doesn't provide for jury trials, the U.S. Constitution protects a plaintiff's right to a trial when there are legal damages at stake.”

N.B.: Diane notes that where plaintiffs seek the restoration of plan losses for alleged breach of fiduciary duty, courts may erroneously conclude that such damages are ‘legal relief’ and that the Seventh Amendment provides a jury trial for such damages.