10-1469 George v. Kraft Foods Global, Inc.

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ERISA
Breach of fiduciary duty

Summary judgment was improperly granted to the defendant on a breach of fiduciary duty claim under ERISA, where the 401(k) plan had a unitized structure.

“[T]he district court’s grant of summary judgment rests on its finding that the undisputed facts established that defendants actually made a reasoned decision between the status quo and the various proposed solutions. Since we conclude that this finding is not supported by the record, we cannot affirm on the grounds given by the district court. Moreover, the district court’s characterization of the fiduciaries’ actions has clouded the presentation of the issues on appeal. Defendants devote most of their brief to arguing that we must defer to the Plan fiduciaries’ decision; however, as noted, they fail to direct us to the decision entitled to deference. Although plaintiffs point out that defendants never made a reasoned decision, they also contend that even if they did there is a genuine issue of material fact as to whether that decision could be described as prudent. In this regard, plaintiffs argue that because Altria saw fit to switch to real-time trading, a reasonable trier of fact could conclude that it was imprudent for Kraft to fail to follow suit.”
Affirmed in part, and Reversed in part.

10-1469 George v. Kraft Foods Global, Inc.

Appeal from the United States District Court for the Northern District of Illinois, Schenkier, Mag. J., Adelman, J.

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