Barbara J. Fuller v. SunTrust Banks, Inc.
744 F.3d 685
11th Cir.2014Background
- Fuller sued SunTrust and related fiduciaries under ERISA for alleged breaches of loyalty and prudence in selecting and retaining proprietary STI Classic Funds in the SunTrust 401(k) Plan.
- The Plan offered proprietary STI Classic Funds (later RidgeWorth) and, beginning in 2005, non-proprietary funds; Fuller invested in three STI Classic Funds and cashed out on October 12, 2005.
- The class period runs from April 25, 2002 to December 31, 2010, on behalf of participants with balances in the STI Classic Funds.
- Counts allege prohibited transactions (Count 1) and fiduciary breaches of prudence and loyalty (Count 2), plus related derivative claims (Counts 4–5) and a stand-alone count about an additional fund (Count 3 for STI International Fund).
- Defendants moved to dismiss arguing (i) lack of standing for STI International Fund, (ii) ERISA’s six-year and three-year limitations periods, and (iii) other dismissal grounds; the district court partially granted and denied, then ultimately dismissed Counts 2, 4, and 5 as time-barred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Count 2 is timely under ERISA § 413(2). | Fuller contends three-year bar does not apply. | SunTrust argues three-year bar applies due to actual knowledge. | Three-year period does not apply at this stage. |
| Whether Count 2 is barred by ERISA § 413(1)’s six-year limit. | Count 2 claims timely as ongoing breaches after 2004. | Count 2 time-barred because initial selection occurred before 2004. | Count 2 is time-barred under six-year statute. |
| Whether Fuller had standing to challenge STI International Fund (Count 3). | Fuller invested in STI International Fund, thus standing. | Fuller lacked investment in STI International Fund; no standing. | Fuller lacked standing for Count 3; not appealed. |
| Whether the district court properly applied discovery/knowledge-based limitations at Rule 12(b)(6). | Documents attached show Fuller lacked actual knowledge; disputed authentication aside. | Documents show knowledge triggering three-year bar. | Court rejected three-year bar; did not resolve authentication; nonetheless Count 2 barred on six-year analysis. |
Key Cases Cited
- David v. Alphin, 704 F.3d 327 (4th Cir. 2013) (initial selection breach same as ongoing claim; six-year bar applies to time of initial selection)
- Tibbie v. Edison International, 729 F.3d 1110 (9th Cir. 2013) (six-year period begins at design/initial designation; changes in circumstances may restart period)
- DiFelice v. U.S. Airways, Inc., 497 F.3d 410 (4th Cir. 2007) (changed circumstances following an event can affect limitations analysis)
- Phillips v. Alaska Hotel and Restaurant Employees Pension Fund, 944 F.2d 509 (9th Cir. 1991) (three-year limitations cannot be restarted by continued breaches absent a new breach)
- Lanfear v. Home Depot, Inc., 679 F.3d 1267 (11th Cir. 2012) (Rule 12(b)(6) standards in ERISA cases; undisputed documents and standards for consideration)