The recent Supreme Court ruling in Tibble v. Edison might have led to a bit of overzealousness on the part of certain class action tort lawyers.
Law360.com reports that the U.S. Supreme Court has declined to take up a class action accusing Embarq Corp. and other companies of improperly changing employees’ retirement benefits, rejecting an argument from retired employees that a Tenth Circuit ruling in the case presented an important question about when retirement benefits can be interpreted as irrevocable.
The legal website says the high court announced Monday it would not hear the case, allowing to stand the Tenth Circuit’s finding that a trial court correctly dismissed Employee Retirement Income Security Act claims brought against Embarq, Sprint Nextel Corp. and other companies by 15 retired employees after the companies allegedly reduced life insurance and health coverage benefits.
“In their petition asking the Supreme Court to hear the case, the retirees had said the Tenth Circuit’s decision laid bare a disagreement among appeals courts about when cases that claim vested benefits were stripped can go to trial,” according to Law 360.
Upholding the case’s partial dismissal in February, the Tenth Circuit said the dismissal of some ERISA claims was warranted because no “clear and express language” existed in the contract saying that the plans had vested, the petitioners said.
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
