On June 18, 2007, the U.S. Supreme Court granted certiorari in the case of LaRue v. DeWolff, Boberg & Associates, Inc., No. 06 Civ. 856, thereby agreeing to consider hotly contested issues surrounding the scope of relief available to 401(k) plan participants under the Employee Retirement Income Security Act of 1974 (ERISA). Depending on the path chosen, the Supreme Court may resolve the issue of whether such participants can obtain monetary relief for investment losses under Section 502(a)(2) of ERISA, which governs claims for fiduciary breach on behalf of plans and their participants; under Section 502(a)(3) of ERISA, which authorizes suits for equitable relief to remedy statutory violations; or under neither statutory provision.
District Court’s Decision
LaRue was a participant in his employer’s 401(k) retirement savings plan where he was permitted to manage his own account by selecting from a menu of investment options. LaRue’s complaint alleged that the plan fiduciaries breached their fiduciary duties by failing to carry out his investment instructions, and that as a result his interest in the plan was depleted by approximately $150,000. LaRue asserted his principal claim under Section 502(a)(3), which authorizes an action by a participant, beneficiary, or fiduciary to obtain other "appropriate equitable relief". 29 U.S.C. § 1132(a)(3).
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