Are you responsible for the actions of the prior members of the retirement plan committee? Fiduciaries have a duty to remedy the continuing effect of their predecessors’ breach if they know of the breach. But what type of knowledge is required for liability to attach? In Fuller v. SunTrust Banks, Inc., a federal court evaluated whether actual or constructive knowledge is sufficient. The court found that successor fiduciaries must have actual knowledge of their predecessors’ breach to be held liable. In so finding, the court rejected plaintiffs’ reliance on general trust law principles which adopt a constructive knowledge standard, and favored the approach endorsed by the Department of Labor and other courts which require actual knowledge. Although the court’s reasoning is arguably circular at times and may be appealed, the decision is a win for today’s plan fiduciaries seeking to avoid liability for their predecessors’ mistakes.
KMK Law articles and blog posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. The laws/regulations and interpretations thereof are evolving and subject to change. Although we will attempt to update articles/blog posts for material changes, the article/post may not reflect changes in laws/regulations or guidance issued after the date the article/post was published. Please consult with counsel of your choice regarding any specific questions you may have.
ADVERTISING MATERIAL.
© 2022 Keating Muething & Klekamp PLL. All Rights Reserved
- Partner
Antoinette Schindel practices in KMK Law's Employee Benefits & Executive Compensation Group. Antoinette regularly advises employers regarding Affordable Care Act (ACA) compliance issues, including health coverage and ...
- Partner
Lisa Wintersheimer Michel is the leader of the Employee Benefits & Executive Compensation Group. Her practice primarily involves all aspects of qualified retirement plans, including profit sharing plans, 401(k) plans ...
Topics/Tags
Select- Labor & Employment Law
- Arbitration
- Coronavirus
- Employment Law
- Labor Law
- Employee Benefits and Executive Compensation
- Discrimination
- Disability Discrimination
- Race Discrimination
- IRS
- OSHA
- Department of Labor
- NLRB
- Employer Policies
- Sexual Orientation Discrimination
- Litigation
- Americans with Disabilities Act
- Retirement
- Social Media
- Accommodation
- ERISA
- National Labor Relations Act
- National Labor Relations Board
- Employer Handbook
- Employment Litigation
- Reasonable Accommodation
- ACA
- Affordable Car Act
- Wage & Hour
- EEOC
- NLRA
- ADAAA
- Title VII
- Federal Arbitration Act
- Unions
- Employer Rules
- Sexual Harassment
- 401(k)
- Technology
- Privacy
- Transgender Issues
- Workplace Accommodations
- FMLA
- Employment Settlement Agreements
- Disability
- Workplace Violence
- Paycheck Protection Program
- Sixth Circuit
- Equal Employment Opportunity Commission
- Fair Labor Standards Act
- Securities Law
- Preventive Care Benefits
- Health Savings Account
- SECURE Act
- US Department of Labor Employee Benefits Security Administration
- Religion Discrimination
- Gender Identity Discrimination
- Posting Requirements
- Class Action Litigation
- Disability Law
- E-Discovery
- Evidence
- Benefits
- Overtime Pay
- Representative Election Regulations
- Family and Medical Leave Act
- Environmental Law
- Department of Justice
- Privacy Laws
- Healthcare Reform
- Older Workers' Benefit Protection Act (OWBPA)
- Telecommuting
- Electronically Stored Information
- Affirmative Action
- Compensable Time
- Equal Opportunity Clause
- Pregnancy Discrimination
- Security Screening
- Supreme Court
- Occupational Safety and Health Administration
- E-Discovery Case Law
- Electronic Data Discovery
- ESI
- Unemployment Insurance Integrity Act
- American Medical Association
- Attendance Policy
- Return to Work
- Seniority Rights
- Classification
- Confidentiality
- Disability Leave
- Equal Pay
- Fair Minimum Wage
- Federal Minimum Wage
- Genetic Information Discrimination
- Media Policy
- Misclassification
- National Origin Discrimination
- Retaliation
- Social Media Content
- State Minimum Wage
- Wage Increase
- Employment Incentives
- HIRE Act
- Social Security Tax
- Taxation
- Antitrust
Recent Posts
- The Practical Employment Law Podcast: The Future of Arbitration
- The Practical Employment Law Podcast: The Gig Economy
- The Practical Employment Law Podcast: Labor & Employment Law Update Week of 3/7/2022
- The Practical Employment Law Podcast: Labor & Employment Law Update Week of 2/7/2022
- Supreme Court Re-Implements Stay of Vaccine Mandate for Employers, Upholds CMS Mandate
- The Practical Employment Law Podcast: Twelve Thoughts About Vaccine Mandates
- Update on Status of Federal Contractor Mandate and OSHA’s ETS
- The Practical Employment Law Podcast: Employment Law Advice from Ebenezer Scrooge
- Update on Status of All Federal Vaccine Mandates
- The Practical Employment Law Podcast: Federal Vaccine Mandate(s) Update