News & Analysis as of

Third-Party Fiduciary Duty

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Be Choosy When Picking Your 401(k) Plan’s TPA

I was very lucky that when I started as an ERISA attorney in 1998, I worked as a staff attorney for a third-party administrator (TPA). It gave me insight and experience that I could never have gotten as an attorney working...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Picking the cheapest provider can be a breach of fiduciary

When it comes to health and fitness, you constantly hear studies about what foods fight or cause cancer. Of course, those studies are then debunked. I remember how oat bran was cited to cut down on cholesterol and how...more

Charles E. Rounds, Jr. - Suffolk University...

When virtual representation is not an option in trust-reformation litigation

In an external contract-based or tort-based dispute between the trustee and a third party to the trust relationship, the beneficiaries are generally not necessary parties. But all beneficiaries (of an irrev. trust) whose...more

Jackson Lewis P.C.

Conjuring Health Plan Hygiene: The Final Chapter

Jackson Lewis P.C. on

As we conclude our “Health Plan Hygiene” blog series, we reflect on the important insights shared about fiduciary responsibilities under the Employee Retirement Income Security Act of 1974 (ERISA) and highlight the risk posed...more

Jackson Lewis P.C.

Health Plan Hygiene Part 4 – Show Me the Money

Jackson Lewis P.C. on

Our “health plan hygiene” series has focused on steps that fiduciaries of employer-sponsored group health plans can take to ensure they meet their fiduciary responsibilities. This issue has been brought to the forefront...more

Jackson Lewis P.C.

Health Plan Hygiene Part 3 – Best Practices for TPA Evaluation, Selection, and Contracting

Jackson Lewis P.C. on

A health plan’s fiduciaries are responsible for administering the health plan. Because most employers are not in the business of administering health benefits, they outsource the day-to-day health plan administration to a...more

ArentFox Schiff

Cross-Plan Offsetting: Recent Eighth Circuit Opinion Affirms Dismissal of Cross-Plan Offsetting Case Concluding Plaintiffs Did Not...

ArentFox Schiff on

In a recent opinion, Smith et al. v. UnitedHealth Group Inc. et al., the US Court of Appeals for the Eighth Circuit affirmed the dismissal of an Employee Retirement Income Security Act (ERISA) class action suit brought by...more

Charles E. Rounds, Jr. - Suffolk University...

Trustee in breach of trust conveys trust property to a third party: Is the transferee a necessary party to an action for breach...

If the trustee in breach of trust conveys the trust property to a third party to the trust relationship, would the transferee be a necessary party to any action for breach of trust that the trust beneficiaries might bring?...more

Charles E. Rounds, Jr. - Suffolk University...

Trustee’s Duty To Defend Trust Property From Third-Party Claims Versus Trustee’s Duty To Defend Trust’s Very Existence, As Well...

A longstanding and critical incident of a trustee’s fiduciary duty of loyalty is the duty to vigorously defend the trust’s very existence, as well as all its material provisions (hereinafter “existence defense”), unless it...more

Husch Blackwell LLP

When the Payor is Also the Decisionmaker in ERISA Benefits Lawsuits Under 29 U.S.C. § 1132(a)(1)(B)

Husch Blackwell LLP on

When the same health plan administrator both administers a benefit plan and pays the benefits due under the plan, it is considered by courts to have a structural conflict of interest. That conflict of interest is not...more

King & Spalding

Florida Appellate Court Holds that Bank Does Not Owe Fiduciary Duties to Customer in Connection with Lending to Third-Party

King & Spalding on

On August 30, 2023, the Florida Third District Court of Appeal affirmed the dismissal of negligence claims against First National Bank of South Miami brought by a group of limited liability companies after a bank customer...more

Husch Blackwell LLP

Anatomy of an ESOP

Husch Blackwell LLP on

ESOPs can pay fair market value for the stock: Stock purchased by an ESOP must be appraised by an independent third party expert working with a trustee for the ESOP who must also be independent from the seller. The ESOP is...more

Pullman & Comley - Labor, Employment and...

Mortgage or other Third Party Loan Investments in Your Plan?  Do they Pass Muster under IRS Issue Snapshot?

The IRS Issue Snapshot-Third Party Loans from Plans dated August 23, 2022 is a short advice document for examiners to use when auditing tax-qualified retirement plans that invest in mortgages or other third party loans. IRS...more

Winstead PC

Suing Attorneys In Texas For Participating in Fiduciary Breaches

Winstead PC on

It is not uncommon for an attorney to execute all or part of his or her client’s wishes, which may be in breach of a fiduciary duty owed by the client to a third party. The third party can certainly sue the client for...more

Winstead PC

Court Holds That Engineer Does Not Owe Fiduciary Duties To A Non-Client

Winstead PC on

In Hussion St. Bldgs., LLC v. TRW Eng’rs, Inc., the plaintiff landowner claimed its real property was injured by the failure of an engineering firm involved in developing the adjoining property to include a water-detention...more

Lathrop GPM

South Dakota Supreme Court Limits Ability of Trust Beneficiaries to Sue on Behalf of Trust

Lathrop GPM on

In a recent opinion, the South Dakota Supreme Court held that trust beneficiaries lacked standing to bring claims against a third party on behalf of the trust. In so holding, the court explained that trustees typically are...more

King & Spalding

The Insider: Key Developments for Chief Legal Officers and Corporate Legal Teams

King & Spalding on

Welcome to the inaugural issue of The Insider. This new publication from King & Spalding’s Public Companies Practice, which will be produced periodically, is focused on key developments for chief legal officers and their...more

Farrell Fritz, P.C.

The Duty to Disclose Third-Party Offers Amidst Buy-Out Negotiations, Revisited

Farrell Fritz, P.C. on

In 2011 and 2012, the New York Court of Appeals decided a series of difficult cases addressing the circumstances under which a contractual waiver or release included in a buyout or other agreement between co-owners of closely...more

Foley & Lardner LLP

The Board's Role in Corporate Compliance is Changing - Fast

Foley & Lardner LLP on

Key Takeaways from Foley's National Directors Institute Conference Panel - When it comes to a corporate board’s oversight of compliance programs, it’s no longer business as usual. In 2019, a Delaware court shifted the...more

Morrison & Foerster LLP

Chancery Allows Limited Discovery In Books And Records Action To Test Stockholder’s Purpose

On July 24, 2020, the Court of Chancery in Delaware rejected defendant Centene Corporation’s broad document requests and third-party subpoenas issued as part of a stockholder action to inspect books and records, but allowed...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending February 7, 2020

Carlton Fields on

Real Property Update - Fraudulent Transfer: Real property that was worth less than mortgage encumbering it was not an asset per the plain language of section 726.102(2) and, therefore, could not support fraudulent transfer...more

Winstead PC

Cautionary Note for Private Company Owners: Third Party Investors Can Create Thorny Problems

Winstead PC on

Like fish need water in which to swim, private company owners need to secure capital on an almost continuous basis. Capital is necessary to develop the company’s products and services, to retain top talent and to market and...more

Winstead PC

Because Fraud By Nondisclosure Cannot Occur After A Transaction Is Consummated, Employees Generally Do Not Owe A Duty To Disclose...

Winstead PC on

In CLC Roofing v. Helzer, a roofer purchased shingles from a seller and stored them on the seller’s property. No. 02-17-00229-CV, 2019 Tex. App. LEXIS 5927 (Tex. App.—Fort Worth July 11, 2019, no pet. history). ...more

BakerHostetler

Ohio Federal Court Rejects Attempt to Certify Class Against Third-Party Plan Administrator Under ERISA § 502(a)(3)

BakerHostetler on

Employee Retirement Income Security Act (ERISA) claims can potentially involve significant amounts in controversy, and in an effort to broaden the pool of potential defendants, ERISA plaintiffs are often fond of arguing that...more

Latham & Watkins LLP

English High Court Confirms the Scope of Freezing Injunctions in Relation to Third-Party Assets

Latham & Watkins LLP on

Third-party assets controlled (de facto or de jure) by the respondent are ordinarily outside the scope of a freezing injunction unless exceptional circumstances can be established. In the recent case of FM Capital Partners...more

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