Opinion ID: 175947
Heading Depth: 3
Heading Rank: 6

Heading: Statute of limitations for the Plaintiffs' claims against Fidelity

Text: The Plaintiffs' final argument on appeal is that the district court erred in dismissing their claims against Fidelity pursuant to ERISA's statute of limitations. They claim that Fidelity breached its fiduciary duties as trustee of the Plans by failing to sue the other cofiduciaries on behalf of the Plans. The Plaintiffs contend that Fidelity had actual knowledge of a fiduciary breach by the OC Defendants when OC filed for bankruptcy in October 2000. All parties therefore agree that Fidelity's statute-of-limitations period for bringing a suit against the cofiduciaries would have expired three years later, in October 2003. The Plaintiffs' claim against Fidelity thus accrued in October 2003, at which point no suit had been brought by Fidelity. But the Plaintiffs did not sue Fidelity until December 2006, so if the Plaintiffs had actual knowledge of the relevant facts regarding Fidelity's alleged breach before December 2003, their claim against Fidelity is time-barred. All of the quarterly account statements in the record contain references to Fidelity and at least one specifically has a Message from Fidelity. Moreover, the October 5, 2000 letter from CEO Hiner informs Plan participants that their 401(k) investments were maintained in trusts separate from the company. Finally, the SPDs identify Fidelity as the trustee and were provided to at least some of the Plaintiffs. All of the Plaintiffs therefore had actual knowledge by October 2000 that Fidelity was intimately involved in the Plans and that the Plans were held in a trust, and at least some of the Plaintiffs knew that Fidelity was the trustee for the Plans. Moreover, by October 2003, the Plaintiffs knew that no one had brought suit against OC on behalf of the Plans or the Plan participants and that their losses had not been recouped. This constitutes knowledge of all the relevant facts; i.e., their investments had suffered, Fidelity was significantly involved in managing the Plans, and no one had sued OC on behalf of the Plans. See Wright, 349 F.3d at 330. The Plaintiffs did not need to know that Fidelity was legally deemed a trustee or that, as such, it had a duty to sue the Plan fiduciaries. Because the Plaintiffs had actual knowledge of the relevant facts regarding Fidelity's alleged breach by October 2003, but did not file suit until December 2006, their claims against Fidelity are barred by ERISA's three-year statute of limitations.