United States Third Circuit

In a class action suit against Schering-Plough Corporation and certain of its officers and directors under ERISA section 502(a)(2) arising out of the offering and management of an ERISA plan, district court's conclusion that a release signed by plaintiff-class representative in connection with her separation from the corporation violated ERISA and was therefore void, and an order certifying the class, is vacated and remanded where: 1) ERISA section 410(a) does not render plaintiff's individual release and covenant not to sue void against public policy, and the effect of her release, therefore, must be considered as the section extends only to contractual or other devices that purports to alter the statutory obligations of a fiduciary under ERISA, and not to reach a release of claims signed by an individual claiming the breach of a fiduciary duty; 2) plaintiff's release does not bar her from bringing the section 502(a)(2) claim on behalf of the Plan; 3) the district court must give further consideration to the interests of the members of the class, and the impact of the release and covenant not to sue, as bearing on plaintiff's ability to be an adequate class representative; and 4) district court erred in granting an open-ended class period.

Appellate Information

• Decided 12/21/2009
• Published 12/21/2009

Judges

• Before:  RENDELL and AMBRO, Circuit Judges, and McVERRY, District Judge.

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• Kent A. Mason, Esq., Davis & Harman, Washington, DC, for Amicus-Appellant American Benefits Council.


• For Appellees:
  
• Eric C. Bosset, Esq., [Argued], Covington & Burling, Washington, DC, Douglas S. Eakeley, Esq., Lowenstein Sandler, Roseland, NJ, for Appellant Schering Plough Defendants., Katherine B. Bernstein, Esq., Edward W. Ciolko, Esq., Peter H. LeVan, Jr., Esq., [Argued], Joseph H. Meltzer, Esq., Barroway, Topaz, Kessler, Meltzer & Check, Radnor, PA, Joseph J. DePalma, Esq., Jennifer Sarnelli, Esq., Lite, DePalma, Greenberg & Rivas, Newark, NJ, Susan D. Pontoriero, Esq., Sea Girt, NJ, for Appellees Michele Wendel, Adrian Fields, Jingdong Zhu, on behalf of himself and All others similarly situated., Elizabeth Hopkins, Esq., [Argued], U.S. Department of Labor, Washington, DC, for Amicus Appellee Secretary of Labor., Jay E. Sushelsky, Esq., American Association of Retired Persons, Washington, DC, for Amicus Appellee American Association of Retired Persons., Agnieszka Fryszman, Esq., Cohen Milstein, Sellers & Toll, Washington, DC, for Amicus Appellee Pension Rights Center.