Lane Powell attorney Mike Baylous writes an excellent summary here on big changes to ERISA in the 9th Circuit.

Remember that old argument that equitable claims should be dismissed because they are duplicative?

Not so anymore in the 9th Circuit (or the 8th Circuit for that matter).

Here is the case of Moyle v. Liberty Mut. Ret. Benefits Plan 05-20-16 Moyle v Liberty Mutual, ___ F.3d ___, 2016 WL 2946271 (9th Cir May 20, 2016).

FACTS:  Former employees eligible for ERISA governed retirement benefits claimed they were wrongfully denied past service credit for time worked. In this class action Plaintiffs asserted a variety of claims, including (1) claims for benefit payments for past service credit under Section 1132(a)(1)(B); and (2) equitable remedies under Section 1132(a)(3).

ISSUE: Whether Plaintiffs’ claims for payment under Section 1132(a)(1(B) and equitable claims under Section 1132(a)(3) were duplicative?

9th CIRCUIT HELD:  Claims for payment under Section 1132(a)(1(B) and equitable claims under Section 1132(a)(3) are “alternative” claims and not “duplicative” claims.

  1. Plaintiffs can present § 1132(a)(1)(B) and § 1132(a)(3) as alternative – rather than duplicative – theories of liability. P. 20.
  2. The Ninth Circuit agreed with the Eighth Circuit’s application, in Silva v. Metro. Life Ins. Co., 762 F.3d 711 (8th Cir. 2014), of CIGNA Corp. v. Amara, 563 U.S. 421 (2011). P. 23.
  3. “Some of our pre-Amara cases held that litigants may not seek equitable remedies under § 1132(a)(3) if § 1132(a)(1)(B) provides adequate relief. However, those cases are now “clearly irreconcilable” with Amara and are no longer binding.” (Citations omitted). P. 25.
  4. “This approach not only comports with Amara and Varity, it also adheres to the Federal Rules of Civil Procedure, which requires that “[a] pleading that states a claim for relief must contain … a demand for the relief sought, which may include relief in the alternative or different types of relief.” Fed.R.Civ.P. 8(a)(3) (emphasis added).  P. 26.
  5. “Finally, allowing plaintiffs to seek relief under both § 1132(a)(1)(B) and § 1132(a)(3) is consistent with ERISA’s intended purpose of protecting participants’ and beneficiaries’ interests. See, e.g., 29 U.S.C. § 1001; see also Varity, 516 U.S. at 513 (“ERISA’s basic purposes favor a reading … that provides the plaintiffs with a remedy.”).” P. 26.
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Photo of Mike Reilly Mike Reilly

Mike Reilly is a nationally recognized labor, employment and employee benefits attorney, named one of the “Top 100 Most Powerful Employment Attorneys in the Nation” for the past five consecutive years by Human Resource Executive®. He has decades of experience providing strategic employment…

Mike Reilly is a nationally recognized labor, employment and employee benefits attorney, named one of the “Top 100 Most Powerful Employment Attorneys in the Nation” for the past five consecutive years by Human Resource Executive®. He has decades of experience providing strategic employment advice, and has represented clients in more than 75 jury trials, arbitrations, bench trials and claims before the EEOC and Washington State Human Rights Commission.

Small and large employers retain Mike for his strategic advice and decades of experience in employment issues and litigation, business decisions and litigation avoidance. Mike provides advice in claims involving discrimination, retaliation, wrongful discharge, disability accommodation, ERISA and non-ERISA employee benefit claims, and wage/hour claims. He served as lead counsel in an employee raiding/trade secret case as reported in the Wall Street Journal, and defends employers in class action claims.

Mike’s remarks on employment issues have been quoted in NewsweekCorporate Legal TimesSeattle TimesEmployee Relations Law JournalPuget Sound Business JournalCFO.com, and other professional journals and management publications. Chambers USA’s Guide to America’s Leading Lawyers for Businessrates Mike in the top ranking (band one) for his work in labor and employment law, and has described him as “one of Seattle’s top-rate attorneys” who is “truly phenomenal [with] superb legal instincts” and “an amazingly assertive litigator.” His clients include Nordstrom, Seattle Seahawks, Home Depot, KeyBank, Starbucks, Fred Hutchinson Cancer Research Center, Red Robin and Seattle Chamber of Commerce, among others.