Background

• Appellees AS executrix and sister sued for breach of contract seeking recovery of ERISA benefits paid to decedent's surviving spouse.
• Settlement agreement associated with separate maintenance waived rights to life insurance proceeds and retirement benefits between spouses.
• Plan administrator paid ERISA benefits to the surviving spouse, not withheld under the divorce-related waiver.
• Appellant moved to dismiss under OCGA § 9-11-12(b)(6), arguing ERISA preemption forecloses state-law claims.
• Trial court granted partial dismissal relying on Kennedy v. Plan Administrator; court of appeals reversed, holding state-law breach claim not precluded.
• Georgia Supreme Court affirmed Court of Appeals: once ERISA funds are paid, state-law claims against the beneficiary may proceed.

Issues

Key Cases Cited

• Boggs v. Boggs, 520 U.S. 833 (U.S. 1997) (ERISA aims to protect participants and defray admin costs)
• Kennedy v. Plan Admin. for DuPont Sav. & Invest. Plan, 555 U.S. 285 (U.S. 2009) (estates cannot recover after funds distributed under ERISA plan; no view on post-distribution remedies)
• Eickhoff v. Eickhoff, 263 Ga. 498 (Ga. 1993) (ERISA funds once delivered are not protected by anti-alienation; state claims may proceed)
• Pardee v. Pardee, 112 P.3d 308 (Ok. Civ. App. 2004) (ERISA funds delivery terminates administrator oversight; state claims viable)
• Sweebe v. Sweebe, 474 Mich. 151 (Mich. 2006) (waiver of interests in retirement benefits allowed despite ERISA framework)
• Estate of Kensinger v. URL Pharma, Inc., 674 F.3d 131 (3d Cir. 2012) (post-distribution claims against beneficiaries do not implicate ERISA protections)
• NCNB Fin. Servs. v. Shumate, No. 829 F. Supp. 178 (W.D. Va. 1993) (ERISA funds post-delivery fall outside plan protections)
• Staelens v. Staelens, 677 F. Supp. 2d 499 (D. Mass. 2010) (courts differ on application of ERISA remedies in certain waivers)