The landmark decision of the Supreme Court in LaRue v. DeWolff, Boberg & Associates, Inc., No. 06-856 February 20, 2008 (“LaRue”) will be referenced in employee benefits law text books for years to come.
James LaRue filed a suit, alleging that by failing to execute his investment direction DeWolff and the Plan breached their fiduciary duties. As a consequence under ERISA section 502(a)(2), he sought to recover the amount he lost due to that failure. As a result of the Court ruling in his favor, any single participant in a defined contribution plan now has a cause of action under ERISA if fiduciary misconduct causes a loss to his or her account. This brings to light the need for greater care to be taken in the manner in which plan assets are invested and administered. (more…)
