Monday, July 15, 2013

Seventh Circuit Allows Participant to Seek Monetary Damages for Alleged Fiduciary Breach

The U.S. Court of Appeals for the Seventh Circuit in a June 13 ruling adopted the U.S. Supreme Court’s view in Cigna Corp. v. Amara in ruling that a health plan participant is permitted to seek “make-whole relief” in the form of monetary damages in alleged fiduciary breach claims against the participant’s plan.

A three-judge panel of the Seventh Circuit vacated and remanded a 2011 district court ruling, allowing the participant to seek equitable relief under ERISA section 502(a)(3) to receive monetary damages when the defendant is a trustee in the alleged fiduciary breach of misrepresenting plan coverage level.

The case, Kenseth v. Dean Health Plan, Inc., is available here.

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