In a unanimous decision, the Supreme Court has ruled in favor ofparticipants in Edison International’s 401(k) plan who claimedcompany fiduciaries violated their duty to monitor threeretail-class mutual funds.
The decision in Tibble vs. Edison International overturns theruling of the 9th Circuit Court of Appeals, which upheld a rulingfrom U.S. District Court for the Central District of California infavor of Edison.
“ERISA’s fiduciary duty is derived from the common law oftrusts, which provides that a trustee has a continuingduty–separate and apart from the duty to exercise prudence inselecting investments at the outset—to monitor, and removeimprudent, trust investments,” wrote Justice Stephen Breyer, whodelivered the opinion for the court.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
