Osberg v. Foot Locker Remanded by Second Circuit

The U.S. Court of Appeals for the Second Circuit on February 13 issued a decision in Osberg v. Foot Locker, remanding the case to the district court to determine whether the plaintiffs have shown they are entitled to plan reformation.

The ERISA Industry Committee (ERIC) filed an amicus brief last fall arguing that the Second Circuit should uphold the summary judgment dismissal of the district court. 

The case involves a claim by plaintiffs that the communications regarding the conversion of the sponsor’s pension plan to a cash balance plan were misleading. The plaintiffs claimed they were entitled to an equitable remedy of either plan reformation to conform the plan to their alleged understanding of the plan communications or surcharge (monetary damages) equal to the difference between the value of their pension benefit based on plan terms and the supposed miscommunications.

The Court upheld the summary judgment dismissal of the plaintiffs’ 204(h) claim on the basis that the plaintiffs did not seek the correct remedy for such a violation and the claim for equitable surcharge on the basis that it is moot in lieu of the claim for reformation.

ERIC members can read more here.