99-1786 Great-West Life & Annuity Insurance Co., et al. v. Knudson, et al.

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The Court rejects petitioners’ argument that they are entitled to relief under sec. 502(a)(3)(A) because they seek “to enjoin a[n] act or practice”-respondents’ failure to reimburse the Plan-“which violates … the [plan’s] terms.” An injunction to compel the payment of money past due under a contract, or specific performance of a past due monetary obligation, was not typically available in equity. Those rare cases in which an equity court would decree specific performance of a contract to transfer funds were suits that, unlike the present case, sought to prevent future losses that were either incalculable or would be greater than the sum awarded.

Local Effect: In a case with similar facts, Wal-Mart Stores, Inc. v. Wells, 213 F.3d 398 (7th Cir. 2000), the Seventh Circuit permitted the imposition of a constructive trust on the funds. The key difference, however, is that the funds in that case were still in the participant’s attorney’s possession, whereas here they had been paid to other creditors. The decision in this case is thus consistent with Wal-Mart v. Wells.

Scalia, J.; Stevens, J., dissenting; Ginsburg, J., dissenting.

Certiorari to the United States Court of Appeals for the Ninth Circuit, 208 F.3d 221, affirmed.