Document: 473 U.S. 134 105 S.Ct. 3085 87 L.Ed.2d 96 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, et al., Petitionersv.Doris RUSSELL. No. 84-9. Argued Jan. 16, 1985. Reargued April 24, Decided June 27, Syllabus Respondent, a claims examiner for petitioner insurance company (petitioner), is beneficiary under employee benefit plans administered by and governed the Employee Retirement Income Security Act of 1974 (ERISA). In May 1979, respondent became disabled with back ailment, received plan benefits until October 17, when petitioner's disability committee terminated her based on an orthopedic surgeon's report. Respondent then requested review that decision, March 11, 1980, administrator reinstated further medical reports, retroactive were paid in full. But claiming she had been injured improper refusal to pay from sued California Superior Court, alleging various causes action state law ERISA. Petitioner removed case Federal District which granted motion summary judgment, holding, inter alia, ERISA barred any extracontractual damages arising out original denial respondent's claim benefits. The Court Appeals reversed pertinent part, holding 132 days took process violated fiduciary's obligation good faith fair diligent manner, this violation gave rise cause § 409(a) could be asserted pursuant 502(a)(2) authorizing civil enforcement Section provides "[a]ny person who fiduciary respect breaches responsibilities, obligations, or duties imposed upon fiduciaries title shall personally liable make such losses resulting breach, restore profits have made through use assets fiduciary, subject other equitable remedial relief as court may deem appropriate, including removal fiduciary." Held: does not provide extra-contractual caused untimely processing claims. Pp. 139-148. (a) text contains no express authority award damages, there nothing support conclusion delay disputed gives private compensatory punitive relief. Rather, shows Congress did intend authorize except itself. Not only relevant relationship characterized at outset one "with plan," but potential personal liability "to . plan." 139-144. (b) Nor can implied. While member class whose was enacted and, view pre-emptive effect ERISA, state-law impediment implying remedy, legislative intent consistency scheme judiciary imply action. provisions 502(a) strong evidence remedies it incorporate expressly. 145-148. 722 F.2d 482 (CA9 1983), reversed. John E. Nolan, Jr., Washington, D.C., petitioners. Brad Naley Baker, Hermosa Beach, Cal., respondent. Justice STEVENS delivered opinion Court. 1 question presented decision whether, (ERISA), held participant 2 Doris Russell, Massachusetts Mutual Life Insurance Company (hereafter petitioner), two eligible employees. Both are funded general both 3 1979 ailment. She when, report surgeon, On 22, internal November submitted own psychiatrist indicating suffered psychosomatic physical manifestations rather than illness. After examination second February 15, confirmed temporarily disabled, 1980. Two later full.1 4 Although has all contractually entitled, terminated, eligibility restored. Among allegations, asserts administering high-ranking officials (1) ignored readily available documenting disability, (2) applied unwarrantedly strict standards, (3) deliberately claim, regulations promulgated Secretary Labor.2 interruption payments allegedly forced husband cash his retirement savings which, turn, aggravated psychological condition Accordingly, pleading 5 United States Central moved judgment. motion, pre-empted "ERISA bars plaintiff's Salary Continuance Plan subsequent thereof." App. Pet. Cert. 29a. 6 appeal, Ninth Circuit affirmed part part. (1983). agreed complaint alleged See id., 487-492. reasoned days3 manner. Id., 488. concluded 502(a)(2). 489-490. It read authorization "such appropriate" giving "wide discretion awarded," damages. 490-491. 7 According Appeals, "remedy wrong aggrieved individual whole," meant merely contractual loss benefits, "that will compensate party injuries sustained direct proximate breach duty," "damages mental emotional distress." 490. Moreover, "is against personally, 490, n. 8. 8 also recovered 409(a), although decided permitted if "acted actual malice wanton indifference rights beneficiary." 492. believed result supported congressional purpose broad redress prevent violations Act. 9 We certiorari, 469 816, 81, 83 29 (1984), components Appeals' 409 authorizes recovery damages.4 defends judgment its reasoning basis well arguing event remedy should inferred analysis employed Cort v. Ash, 422 66, 78, 95 2080, 2088, 45 26 (1975). reject arguments. 10 * As caption implies, establishes "Liability Breach Fiduciary Duty."5 Specifically, provides: 11 "(a) Any each fiduciary. A section 411 Act."6 88 Stat. 886, U.S.C. 1109(a). Sections 501 502 authorize, respectively, criminal former penalties willfully violates reporting disclosure requirements Act,7 latter identifies six types actions brought parties. Most our inquiry 502(a), part: 12 "A brought— 13 "(1) beneficiary— 14 "(A) provided subsection (c) section, 15 "(B) recover due him terms plan, enforce clarify future plan; 16 "(2) Secretary, participant, appropriate ." 891, 1132(a). 17 There disagreement bring 409. contends, however, inures whole. find contention 409, statutory defining beneficiary. 18 focused reference appropriate." entire examined, emphasis between entity becomes apparent. Thus, plan. ."8 19 To directly opening clause proscribed acts, "catchall" phrase end—skipping over intervening language establishing benefiting, first instance, solely plan—would divorce being construed context construct entirely new entities Cf. FMC Seatrain Lines, Inc., 726, 734, 93 1773, 1779, 36 620 (1973); Jones, 131 1, 19, 669, 671, 33 L.Ed. 90 (1889). This "blue pencil" method interpretation—omitting words clauses deemed task hand—impermissibly ignores subsists. Jarecki G.D. Searle & Co., 367 303, 307, 81 1579, 1582, 859 (1961). case, mode interpretation would render superfluous preceding providing singularly slight following after relief." specified includes "removal fiduciary"—an example kind "plan-related" more specific succeeds. contextual reading statute makes abundantly clear draftsmen primarily concerned possible misuse assets, protect beneficiary.9 20 course true obligations administrators serve interest participants beneficiaries specifically, them authorized principal trustees relate proper management, administration, investment fund maintenance records, information, avoidance conflicts interest.10 Those described Part Title Act, entitled "Fiduciary Responsibility," see §§ 401-414, 874-890, 1101-1114, whereas relating procedures found 5, dealing "Administration Enforcement." 503, 893, 1132(a), 1133. concerns denied—§ 503—merely specifies every comply certain Labor.11 21 Secretary's contemplate "shall promptly, ordinarily 60 plan's receipt request review, unless special circumstances require extension time processing, rendered soon possible, 120 review." CFR 2560.503-1(h)(1)(i) (1984). Nothing statute, expressly either itself greater required determine merits application treated having denied 60- 120-day period elapsed. 2560.503-1(h)(4) ("If furnished within time, review" (emphasis added)). provision therefore enables claimant determined, just he challenge outright 22 Significantly, explicitly plan—§ 502(a)(1)(B), quoted supra, 140—says about consequences administrators' claim. really right And persuades us short, unlike we do beneficiary.12 II 23 Relying four-factor U.S., S.Ct., 2088,13 argues implied even four factors unquestionably claim: remedy. factors—legislative scheme—point opposite direction. "unless structure, some source, essential predicate implication simply exist." Northwest Airlines, Inc. Transport Workers, 451 77, 94, 101 1571, 67 750 (1981). "The federal engraft matter how salutary, provide." Sierra Club, 287, 297, 1775, 1781, 68 24 voluminous history contradicts position. early version contained "legal equitable" Senate House Committee Reports "the full range legal courts." H.R.Rep. 93-533, p. (1973), U.S.Code Cong. Admin.News 1974, pp. 4639, 4655, Leg.Hist. 2364; S.Rep. 93-127, 35 4838, 4871, 621. appeared describing bill before debate floor Senate-House Conference finalized operative language.14 passed Representatives ultimately adopted deleted. relied below, therefore, little help understanding whether intended 25 carefully integrated finally enacted, forgot assumption inadvertent omission especially suspect close consideration ERISA's interlocking, interrelated, interdependent scheme, turn "comprehensive reticulated statute." Nachman Corp. Pension Benefit Guaranty Corp., 446 359, 361, 100 1723, 1726, 64 354 (1980). If example, adhered initial determination panoply devices disposal. her, filed 502(a)(1)(B) accrued obtain declaratory contract, enjoin improperly refusing future. administrator's willful larger systematic hypothetical asked Finally, answer concern attorney's fees might present barrier suits small claims, thereby risking underenforcement beneficiaries' rights, noted fees. 502(g), 892, amended, 1132(g)(1). reluctant tamper crafted evident care stated Transamerica Mortgage Advisors, Lewis, 444 242, 246, 62 146 (1979): "[W]here particular remedies, must chary others into it." Touche Ross Co. Redington, 442 560, 571-574, 99 2479, 2486-2488, 61 82 (1979). presumption omitted strongest comprehensive system enforcement." 97, 1583.15 27 contrast repeatedly emphasized defined benefits,16 stark absence—in history—of intention damages.17 Because "neither nor reveals create need carry Ash further." 31, 31. III 28 structure provide, imply, 30 Reversed. 31 BRENNAN, whom WHITE, MARSHALL, BLACKMUN join, concurring 32 wide array measures employee-benefit they their plans. file action, 502(a)(1)(B); "for 409," 502(a)(2); act practice violations," 502(a)(3) added).1 presents single, narrow question: "appropriate relief" referred duty. that, because broadly appropriate,"2 section. 482, 488-489 I agree Court's today fairly "remedies plan" individuals, ante, 142, accordingly look elsewhere Indeed, since already "other [ERISA] reason construe expansively order these individuals penumbra "equitable 34 resolve, course, what extent 502(a)(3). addressed courts below briefed parties amici. Thus properly emphasizes "we occasion consider damages." Ante, 139, 5. save another day questions mishandling constitute actionable set forth 404(a), nature redress" dicta opinion, sweeping ground resolution above. takes limit binding 409,3 points seems speak generally ever remarks incompatible history, purposes ambiguous discussion certainly different readings, without controlling significance beyond write separately outline believe approach take construing emphasize issues left open today's decision. suggesting most run itself, opposed beneficiaries. 142-144. apparently thinks fact "are 5." 143. associated restricted those spelled 503. 37 suggests fully traditional trust-law duties, strongly disagree. acknowledges footnote, 9, 404(a) sets governing standard "a discharge and—(A) exclusive of: (i) beneficiaries."5 That carrying exercise care, skill, prudence, diligence" "prudent man acting like capacity." demonstrates standards trust ERISA,6 black-letter owe running administration payment benefits.7 govern claims-administration process.8 38 suggestion concerning distinction Parts thoroughly unconvincing. "redress" "any plan."9 404(a)'s fiduciary-duty appear I, "PROTECTION OF EMPLOYEE BENEFIT RIGHTS." whenever 404(a).10 claims-processing beneficiary's corresponding necessarily limited light important remains disposition controversy them. 39 Russell Congress' overall restrict scope behalf 139-142, squarely (1975).11 40 disposing relatively straightforward issue, observations role enforcing suggests, "crafted" "carefully integrated" so "interlocking, scheme" " 'tamper with.' 146, 147. 41 discussion, say respectfully, unnecessary completely erroneous. correct ERISA; sought 409,12 cannot purport resolve many contexts arise statute. constrictive judicial inaccurate insofar recover, addition violations. instructed injunctive plans, secure fees, additional precisely "fine-tune" scheme. while bearing go 42 develop common fashioning presenting Report Senate, Senator Javits, ranking minority Labor Public Welfare sponsors "[i]t body substantive developed deal involving welfare pension plans."13 Williams, Committee's Chairman Act's sponsor, similarly "will regarded laws States, similar fashion 301 Management Relations Act."14 301, "authorizes law" collective-bargaining agreements, derived "looking policy legislation effectuate policy." Textile Workers Lincoln Mills, 353 448, 451, 457, 77 912, 915, 918, 972 (1957).15 principles onto 6, fundamental concept give necessary protection interests."16 preclude delineation remedies; far barring process, directs undertake it. 43 reserves form resolving begin ascertaining above withheld;17 logical step, given remedies.18 law, next allowance significantly conflict aspect addition, always bear mind ultimate disallowance best underlying ERISA—enforcement aspects promotion interests ----. 44 concur qualified permanent regularly paid. regulations, 505, 893-894, 1133, 1135, 2560.503-1(h) discuss infra, 144, 3091. measured evidence, date accept position point. cross-petition questioned relies disclaims reliance 502(a)(3), Tr. Oral Arg. 31-32. prohibits convicted enumerated offenses serving regulated 887, 1111. reads follows: "Any portion subtitle, regulation issued provision, conviction fined $5,000 imprisoned year, both; individual, fine exceeding $100,000." 1131. consists 101-111, imposes elaborate administrators. 840-851, 1021-1031. H.R.Conf.Rep. 93-1280, 320 (1974), 5038, reprinted Subcommittee Welfare, 94th Cong., 2d Sess., Legislative History 4587 (Comm. print 1976) (hereinafter Leg. Hist.); 93-383, 8, 32, 4890, Hist. 1076, 1100, 1173; 619. crucible mismanagement designed abuses Cong.Rec. 29932 (1974) ("[T]he responsibility respecting handling, assets") (remarks Sen. Williams), 4743; 29951 ("This establish judicially enforceable insure honest, faithful, competent management funds") Bentsen), 4795; 29954 ("[I]nstances arisen funds used managers [T]his reduce substantially potentialities abuse") Nelson), 4803; 29957 ("In frequently themselves abused responsible manipulate poor investments them") Ribicoff), 4811; ("[M]isuse, manipulation, too frequent") 4812; 29961 mismanaged") Clark), 4823; 29194 (ERISA "provisions handling worker's money") Rep. Biaggi), 4661; 29196-29197 ("These plans") Dent), 4668; 29206 "fiduciary guard fraud abuse Brademas), 4694. Consistent objective, 502(a)(2), classes party-plaintiffs: Labor, participants, beneficiaries, fiduciaries. Inclusion indicative duty representative capacity shared financial integrity loyalty With regard loyalty, 406, self-dealing sales exchanges hand, "parties interest" "disqualified persons," other. 879-880, 1106. same vein, 408(c)(2) compensating full-time employees unions employers. 885, 1108(c)(2). 404, among person" measure fiduciaries' decisions assets. 877, 1104(a)(1)(B). 404 mandates beneficiaries." 1104(a)(1). 503 "In accordance shall— adequate notice writing denied, setting reasons denial, written manner calculated understood afford reasonable opportunity named denying claim." Labor's rulemaking power 894, 1135. reach determining implicit one, several relevant. First, plaintiff 'one especial enacted,' Texas Pacific R. Rigsby, 241 33, 39, 484, 874 (1916) supplied)—that is, favor plaintiff? Second, indication intent, explicit implicit, deny one? See, e.g., National Railroad Passenger Assn. Passengers, 414 453, 458, 460, 94 690, 693, 694, 646 (Amtrak ). Third, consistent finally, traditionally relegated area basically inappropriate infer law?" 2088 (citations omitted). H.R. "[c]ivil relief, equitable, restrain responsibility, obligation, 2, 93d Sess. (Mar. 4, 1974), 3816. (It earlier bills. S. 603, 1st (Apr. 18, 1973), 579; 1179, 501(d), (Aug. 21, 950.) Middlesex County Sewerage Authority Sea Clammers Assn., 453 14-15, 2615, 2623-2624, 69 435 (1981); Industries, Radcliff Materials, 630, 639-640, 2061, 2066-2067, 500 295, 1780, (1974); Nashville Milk Carnation 355 373, 375-376, 78 352, 353-354, 340 (1958); Switchmen Mediation Board, 95, (1943); Botany Worsted Mills 278 282, 289, 49 129, 132, 73 379 (1929). 374-375, 1732-1733, (1980); 29196 4665; 119 30041 1633. lest cost discourage growth 2348, 2356; 29949 4791; 29210-29211 4706-4707. full: 409; "(3) beneficiary, (A) (B) (ii) "(4) [section] 105(c); "(5) otherwise (b), title, title; "(6) collect penalty (i)." 1109, "(b) No committed ceased 138 ("We certiorari damages"); 138, 4; 144 ("[W]e beneficiary"); 148. 136, 142-144, 146-148. Duties Claims Administration 1296, 1104(a), [A] and— beneficiaries; defraying expenses diligence prevailing prudent familiar matters conduct enterprise character aims; "(C) diversifying minimize risk large losses, clearly so; "(D) documents instruments IV." 4649 ("The essence, codifies applicable evolution trusts"); 13, 4651: existing modifications These salient place twofold fiduciary: situation conditions act, consistently previously enumerated, inconsistent section." 28-29 303 5083 beneficiaries"); Williams); Fund Transport, 472 559, 570, 2833, 2840, 86 447 (1985) ("Congress invoked trusts define [fiduciary] responsibility"); NLRB Amax Coal 322, 329, 2789, 2794, 672 (1981) ("Where uses accumulated settled meaning equity infer, dictates, means established terms"); Leigh Engle, 727 113, 122 (CA7 1984); Donovan Mazzola, 716 1226, 1231 1983); Sinai Hospital Baltimore, For Health Care Employees, 697 562, 565-566 (CA4 1982); Bierwirth, 680 263, 271 (CA2), cert. 459 1069, 103 488, 74 631 (1982). Restatement (Second) Trusts 182 (1959); G. Bogert Bogert, Law 109 (1973). 29929 Williams) added) "strict control plan"); Admin.News, 5081 (re delegating "allocation delegation benefits"). "recover "clarify receive "relief duty." 326-327. 29933 (beneficiaries "as violations"). Trust-law nature, include monetary Trustees 862 (2d ed. 1982) Trustees); 199, 205 (1959). unavailable reasons, 157-158, withheld denominated "equitable." Torts 874, Comment b (1979) ("Violation Duty") (although "[t]he defaulting negligent trustee equity," harm relation"). Judicial Construction An specifically third Ash: one?," plaintiff?" 2088. "Section [502] allows sue [409]. However, not, [409]." Brief 14; 2. 29942 (1974). 29933. 327, 5107 ("All State Labor-Management 1947"). Society Professional Engineers 679, 688, 98 1355, 1363, 55 637 (1978) (footnote omitted): "Congress Sherman delineate concrete situations. perfectly expected shape statute's mandate drawing common-law tradition. Rule Reason, origins precedents long antedating served purpose." me incorporation deserves generous flexible construction. A. Scott, 1638 (1967). 205, (1959) (beneficiary "which put trust"); 862. absence dispositive, "in enacting exacting funds." F.2d, added); 565-566. "Where rule source uniform. Yet, where compatible national resorted Here, guidance. insurance, pensions, programs, pre-existing experience experiment yet, inexperience. Much states thus developed, particularly field, statutory. areas public concern, legislatures quite active regulatory schemes, sources doubt play major development plans." Wayne Chemical, Columbus Agency Service 426 F.Supp. 316, 325 (ND Ind.), modified grounds, 567 692 1977).

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