Summary
Since a seminal court case in 1985, courts have largely, if not unanimously, concluded that individuals cannot sue ERISA plan fiduciaries for individual losses to the plan. The Internal Revenue Code which governs such suits states that fiduciaries are liable to make good any losses to a plan resulting from a breach of their duties. The argument was that monetary damages could be provided only for the plan as a whole, so employees could sue only on behalf of the plan, not themselves. This article looks at the potential effects on ESOPs.