Opinion ID: 795275
Heading Depth: 5
Heading Rank: 1

Heading: Breach of fiduciary duty claims under ERISA

Text: 75 This Court has recognized an equitable claim by a participant against an ERISA plan fiduciary arising out of 29 U.S.C. § 1132(a)(3) when a fiduciary misleads a participant or beneficiary. See Krohn v. Huron Mem. Hosp'l, 173 F.3d 542, 546 (6th Cir.1999). Pursuant to § 1002(21)(A) of ERISA: 76 [A] person is a fiduciary with respect to a plan to the extent (i) he exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets . . . or (iii) he has any discretionary authority or discretionary responsibility in the administration of such plan. 77 29 U.S.C. § 1002(21)(A). ERISA also provides that a fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries. 29 U.S.C. § 1104(a)(1). 78 A fiduciary breaches his duty by providing plan participants with materially misleading information, regardless of whether the fiduciary's statements or omissions were made negligently or intentionally. Krohn, 173 F.3d at 547 (internal quotation and citation omitted). Misleading communications to plan participants regarding plan administration (for example, eligibility under a plan, the extent of benefits under a plan) will support a claim for a breach of fiduciary duty. Drennan v. Gen. Motors Corp., 977 F.2d 246, 251 (6th Cir.1992) (internal quotation and citation omitted). A lower court in this Circuit has applied the fiduciary duty/misrepresentation case law of this Court to a plaintiff's claim that a misrepresentation precluded her from seeking alternative sources of disability coverage. See Parks v. Fin. F.S.B., 345 F.Supp.2d 889, 897 (W.D.Tenn.2004). 79 To establish a claim for breach of fiduciary duty based on alleged misrepresentations concerning coverage under an employee benefit plan, a plaintiff must show: 80 (1) that the defendant was acting in a fiduciary capacity when it made the challenged representations; 81 (2) that these [representations] constituted material misrepresentations; and 82