Labor & Employment Law

Supreme Court will review "likely harm" standard in ERISA claim

The US Supreme Court granted certiorari today to review a 2nd Circuit judgment. The case: CIGNA Corp v. Amara (Certiorari granted 06/28/2010)

After CIGNA converted its traditional defined benefit pension plan to a cash balance plan, it issued a summary plan description (SPD) to plan participants. Amara brought a class action claiming that CIGNA failed to comply with ERISA's notice requirements and SPD provisions. The trial court held for Amara; the 2nd Circuit affirmed. The finding was that the SPD misrepresented the terms of the plan itself.

Although CIGNA argued that the plaintiffs failed to show injury, the trial court found that it was enough that the participants had shown "likely harm" and that CIGNA had failed to establish harmless error. The US Supreme Court granted certiorari to review the 2nd Circuit judgment.

Full post as published by Ross' Employment Law Blog on June 28, 2010 (boomark / email).