Tibble v. Edison International

The Supreme Court decides Tibble v. Edison International.

Document Excerpt

 

Held: The Ninth Circuit erred by applying §1113’s statutory bar to abreach of fiduciary duty claim based on the initial selection of the investments without considering the contours of the alleged breach offiduciary duty. ERISA’s fiduciary duty is “derived from the common 2 TIBBLE v. EDISON INT’L Syllabus

law of trusts,” Central States, Southeast & Southwest Areas Pension Fund v. Central Transport, Inc., 472 U. S. 559, 570, which provides that a trustee has a continuing duty—separate and apart from theduty to exercise prudence in selecting investments at the outset—tomonitor, and remove imprudent, trust investments. So long as aplaintiff’s claim alleging breach of the continuing duty of prudenceoccurred within six years of suit, the claim is timely. This Court expresses no view on the scope of respondents’ fiduciary duty in this case, e.g., whether a review of the contested mutual funds is required,and, if so, just what kind of review. A fiduciary must discharge hisresponsibilities “with the care, skill, prudence, and diligence” that aprudent person “acting in a like capacity and familiar with such matters” would use. §1104(a)(1). The case is remanded for the Ninth Circuit to consider petitioners’ claims that respondents breached their duties within the relevant 6-year statutory period under §1113, recognizing the importance of analogous trust law.

 

729 F. 3d 1110, vacated and remanded.

BREYER, J., delivered the opinion for a unanimous Court.

Link

http://www.supremecourt.gov/opinions/14pdf/13-550_97be.pdf

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