Sole shareholder and officer of company contributing to union plan who used employee salary reduction amounts to pay company creditors is fiduciary and personally liable
Article Abstract:
The diversion of withheld employee union benefit plan contributions to pay business creditors by a business owner with authority and control over the benefit funds falls within the scope of ERISA. The 2d Circuit Court of Appeals held a business owner personally liable for breach of ERISA-defined fiduciary duty in Lopresti v. Terwilliger. The court held that the exercise of authority and control over the funds satisfied the functional ERISA definition of fiduciary.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1997
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Employers and insurers held liable under COBRA
Article Abstract:
Courts have held that employers that offer health insurance plans to workers and insurance companies that provide these plans can be liable for COBRA violations and breaches of fiduciary duty. A breach of fiduciary duty can occur when an employer or an insurer fails to provide a COBRA election to an accident victim or when an employer terminates coverage for a beneficiary who is mentally incompetent when the beneficiary fails to pay premiums on time.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1992
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General Motors liable for fiduciary breach where automaker failed to reveal planned benefit changes to laid-off workers
Article Abstract:
The 6th Circuit held in Drennan v General Motors Corp that the auto company had breached its ERISA plan fiduciary duties to workers by not notifying them of proposed changes in their severance benefits after a plant shutdown. This decision shows the risks of the dual role of employer and pension plan fiduciary. The case is also the first time courts have held employer decisions about fringe benefits to be fiduciary decisions.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1992
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- Abstracts: The spike in mergers is prompting U.S. courts to compel corporate parties who have not signed any arbitration agreements to arbitrate international disputes
- Abstracts: Let companies fund executive pensions. Code s. 162(m) deduction limitation does not apply to compensation paid to officers who resign before year-end
- Abstracts: Corporate law - a safe harbor proposal to define the limits of directors' fiduciary duty to creditors in the "vicinity of insolvency." (Case Note)
- Abstracts: Expert opinions put to the test; decision addresses accommodations for disabled. Economic testimony under fire; courts are increasingly finding economists unreliable as expert witnesses
- Abstracts: Intellectual property rights coming of age in Asia; emerging Asian economies are increasing protection of patents, trademarks and copyrights