Supreme Court of the United States

Larue v. Dewolff, Boberg & Associates, Inc.

February 20, 2008552 U.S. 248

Summary

The Court held that ERISA § 502(a)(2) permits a participant in a defined-contribution plan to recover, on behalf of the plan, losses caused by fiduciary misconduct that diminishes the value of assets in the participant's individual account. The Court distinguished the limitation applicable to injuries distinct from plan injuries and explained that the statutory focus on protecting the entire plan does not bar recovery for account-specific losses in a defined-contribution plan. The Court vacated the Court of Appeals' judgment and remanded, declining to decide the alternative § 502(a)(3) issue or the merits of petitioner's allegations. Justice Thomas, concurring in the judgment, agreed with the result but relied on the statutory text rather than the evolution of pension plans.

Holding

  • Whether ERISA § 502(a)(2) authorizes recovery for losses to a participant's individual account in a defined-contribution plan.. Although § 502(a)(2) does not provide a remedy for individual injuries distinct from injuries to the plan, it authorizes recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account.
  • Whether the case was moot because petitioner was no longer a participant in the plan.. The case was not moot because a former employee may remain a plan participant when asserting a colorable claim for benefits.

Docket 06-856

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