Employment – ERISA — statute of limitations

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U.S. Court of Appeals for the 7th Circuit

Civil

Employment – ERISA — statute of limitations

Where employees lack actual knowledge of a breach of fiduciary duty, the statute of limitations is six years.

“In the case of an ERISA plan that invokes a § 1108 exception to a § 1106 prohibition, the plaintiff does not have actual knowledge of an alleged violation until she knows that the exception does not apply. These plaintiffs did not have actual knowledge of the violations based on the information defendants provided. That information claimed that defendants had been prudent, had used appropriate procedures to evaluate the Antioch buy-out transaction, and had concluded that the consideration would be adequate. To the extent defendants argue that this approach extends the limitations period too long, the response is that the six-year limit in § 1113(1) remains applicable to protect defendants from stale claims.”

Reversed and Remanded.

12-3330 Fish v. GreatBanc Trust Co.

Appeal from the United States District Court for the Northern District of Illinois, Shadur, J., Hamilton, J.