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Cunningham v. Cornell (ERISA)
Manage episode 478151638 series 2286679
Content provided by Jake Leahy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Jake Leahy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
In Cunningham v. Cornell University, the Supreme Court addressed a fundamental pleading question under the Employee Retirement Income Security Act of 1974 (ERISA). Petitioners—former and current Cornell University employees—alleged that university fiduciaries violated ERISA §1106(a)(1)(C) by causing their retirement plans to pay excessive fees for recordkeeping services to Fidelity and TIAA-CREF, both parties in interest. The Second Circuit dismissed the claim, holding that plaintiffs must also plead that the transaction wasn’t exempt under §1108(b)(2)(A), which allows for reasonable arrangements with service providers.
The Supreme Court unanimously reversed. Writing for the Court, Justice Sotomayor held that §1106(a)(1)(C) sets out a categorical bar against certain transactions between plans and parties in interest, and plaintiffs need only plausibly plead the elements of that section to state a claim. The §1108 exemptions—such as those permitting “reasonable arrangements” for necessary services—are affirmative defenses that defendants must raise and prove. Citing Meacham v. Knolls Atomic Power Lab, the Court emphasized that statutory exemptions laid out in separate provisions do not become part of a plaintiff’s burden unless Congress says otherwise.
Just Sotomayor writing for a unanimous Court. Justice Alito filed a concurrence, joined by Justices Thomas and Kavanaugh.
Read by Jeff Barnum.
477 episodes
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Manage episode 478151638 series 2286679
Content provided by Jake Leahy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Jake Leahy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
In Cunningham v. Cornell University, the Supreme Court addressed a fundamental pleading question under the Employee Retirement Income Security Act of 1974 (ERISA). Petitioners—former and current Cornell University employees—alleged that university fiduciaries violated ERISA §1106(a)(1)(C) by causing their retirement plans to pay excessive fees for recordkeeping services to Fidelity and TIAA-CREF, both parties in interest. The Second Circuit dismissed the claim, holding that plaintiffs must also plead that the transaction wasn’t exempt under §1108(b)(2)(A), which allows for reasonable arrangements with service providers.
The Supreme Court unanimously reversed. Writing for the Court, Justice Sotomayor held that §1106(a)(1)(C) sets out a categorical bar against certain transactions between plans and parties in interest, and plaintiffs need only plausibly plead the elements of that section to state a claim. The §1108 exemptions—such as those permitting “reasonable arrangements” for necessary services—are affirmative defenses that defendants must raise and prove. Citing Meacham v. Knolls Atomic Power Lab, the Court emphasized that statutory exemptions laid out in separate provisions do not become part of a plaintiff’s burden unless Congress says otherwise.
Just Sotomayor writing for a unanimous Court. Justice Alito filed a concurrence, joined by Justices Thomas and Kavanaugh.
Read by Jeff Barnum.
477 episodes
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Similar to Supreme Court Decision Syllabus (SCOTUS Podcast)
"OPB Politics Now" is a weekly podcast that takes a deep dive into the hottest political topics in Oregon and the Northwest. Every Friday, OPB’s political reporters and special guests offer in-depth analysis, discussion and insight into candidates, events and issues.
…
continue reading
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continue reading
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continue reading
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