Litigation with Fringe Benefit Funds

Recent case law has supported this theory and Funds have responded by amending plan documents to provide that all unpaid fringe benefits funds are “plan assets” when due.   In order to find that an officer is a fiduciary, however, the officer must have notice.   We have successfully litigated this issue on behalf of corporate officers.  The court agreed with our position that the Funds’ claims should be dismissed – the officers could not have been fiduciaries for holding plan assets subject to ERISA liability if the officers had no notice of the changes to the plan documents which changed the officers’ fiduciary status.

Our litigation and motion practice resulted in a successful dismissal of personal liability against the officers in this case.  The Funds attempted to amend their complaint (4 times in total) to state valid claims.  We convinced the court that each proposed complaint should be dismissed for failure to state a valid claim against the individuals.

Sometimes aggressively seeking dismissal at the beginning of the case is the best litigation strategy.

A copy of the Court’s opinions are available below for your review.

O-Order Dismissing Second Motion to Amend Complaint 042915

O-Order Granting Motion to Dismiss Count III 071714

O-Order re Motion for Leave to Amend Complaint 102714