Elena David v. J. Alphin
704 F.3d 327
| 4th Cir. | 2013Background
- ERISA fiduciaries at Bank of America faced claims over Bank-affiliated mutual funds in two BOA plans (401(k) and a Pension Plan).
- Pension Plan is defined-benefit; 401(k) Plan is defined-contribution; CBC managed investment options for the Plans.
- District court dismissed Pension Plan claims for lack of Article III standing and later granted summary judgment on time-barred 401(k) claims.
- Plaintiffs amended to TAC with Removal and Selection Classes for the 401(k) Plan; Counts I–IV targeted fiduciary breaches and prohibited transactions.
- District court held 401(k) claims time-barred and dismissed all remaining claims; appeal followed.
- Court affirms district court’s rulings on standing and limitations, and dismisses TAC with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether pension-fund plaintiffs have Article III standing. | David argues Sprint grants representational standing for ERISA plan injuries. | Appellees reject Sprint as inapplicable to ERISA defined-benefit plans. | No representational standing under Sprint for Pension Plan. |
| Whether trust-law theories confer standing. | Plaintiffs rely on trust law to equate beneficiary standing with fiduciary breaches. | Trust-law principles do not extend to ERISA standing here. | Trust-law standing rejected. |
| Whether plaintiffs have a concrete injury-in-fact. | Breaches diminished Pension Plan assets and jeopardized benefits. | No concrete injury where plan is overfunded and benefits vest independently of plan investments. | No Article III injury-in-fact. |
| Whether Counts I–IV are timely under ERISA limitations. | Counts arise from initial fund selection and ongoing failure to remove funds; accrual may restart. | Initial selection in 1999; removal failures do not restart limitations; accrual for Count IV occurs in 1999. | Counts I–IV barred by § 1113(1)(A); Count IV accrual in 1999. |
Key Cases Cited
- Sprint Commc’ns Co. v. APCC Servs., Inc., 554 U.S. 269 (U.S. 2008) (assignee standing and representational standing principles involved)
- Vermont Agency of Nat. Resources v. United States ex rel. Stevens, 529 U.S. 765 (S. Ct. 2000) (relator standing; partial assignment of government’s damages claim)
- Hughes Aircraft Co. v. Jacobson, 525 U.S. 432 (U.S. 1999) (defined-benefit plan participants have fixed rights; injury requires plan-level risk)
- LaRue v. DeWolff, Boberg & Associates, Inc., 552 U.S. 248 (U.S. 2008) (injury-in-fact requires risk to plan or benefits; individual entitlement fixed)
- In re Mutual Funds Inv. Litig., 529 F.3d 207 (4th Cir. 2008) (standing considerations in ERISA context; constitutional standing required)
- Wilmington Shipping Co. v. New England Life Ins. Co., 496 F.3d 326 (4th Cir. 2007) (ERISA standing and damages analysis; plan context)