In Re Iron Workers Local 25 Pension Fund, 811 F. Supp. 2d 1295

Fund is ERISA pension plan with ~5,000 participants, governed by a Trust Agreement; Joint Board of Trustees comprises 3 Union Trustees and 3 Employer Trustees; Trustees hired Sullivan Ward as fund counsel; contingency fee agreement with Sullivan Ward paid 1/3 of net recovery after $250,000 hourly fees; Watson Wyatt acted as Fund actuary and later advised on funding shortfall; litigation against Watson Wyatt settled for $110 million with fees paid to Sullivan Ward from settlement proceeds.

Issue	Plaintiff's Argument	Defendant's Argument	Held
ERISA fiduciary status of Sullivan Ward	Sullivan Ward exercised control over plan assets	Sullivan Ward provided legal services, not fiduciary control	Sullivan Ward not an ERISA fiduciary
Trustees' fiduciary duties during litigation	Trustees breached duties by the fee arrangement and oversight	Trustees prudently managed litigation and reviewed costs	Trustees did not breach ERISA fiduciary duties
Contingent fee arrangement as prohibited transaction	Fee structure violated ERISA § 1106(a)	Contract was reasonable, necessary, and within § 1108(b)(2)	Fee agreement not a prohibited transaction

Briscoe v. Fine, 444 F.3d 478 (6th Cir.2006) (fiduciary status depends on control over plan assets and decision-making)
Pappas v. Buck Consultants, Inc., 923 F.2d 531 (7th Cir.1991) (fiduciary status in professional advisers depends on exerting control over plan assets)
Donovan v. Cunningham, 716 F.2d 1455 (5th Cir.1983) (trustees may rely on counsel but are not insulated from imprudence liability)
Chao v. Hall Holding Co., Inc., 285 F.3d 415 (6th Cir.2002) (prudent process and independent judgment standard for fiduciaries)
Custer v. Sweeney, 89 F.3d 1156 (4th Cir.1996) (professional advisers may be fiduciaries if they exercise control over plan assets)
Mertens v. Hewitt Assocs., 508 U.S. 248 (U.S. 1993) (definition of ERISA fiduciary in functional terms of control over plan)