LaRue v. DeWolff, Boberg & Associates, Inc.
Filed February 20,2008
Cite as 06-856

Decision on motion for judgment on the pleadings reversed

Defendant DeWolff, Boberg & Associates, Inc. is a nationwide management consulting firm organized under the laws of South Carolina. It manages, and as such a fiduciary of, an ERISA-regulated 401(k) retirement savings plan in which its employees participate.

Plaintiff James LaRue has participated in this 401(k) plan since 1993. He contended that in 2001 and 2002, he instructed DeWolff to make changes in his account but said changes were never carried out.

As a consequence, plaintiff filed a complaint against DeWolff and the plan arguing that:

• the omission resulted to a breach of fiduciary duty


• due to said omissions, his “interest” in the plan had been depleted by $150,000.00

Defendants filed a motion for judgment on the pleadings which the trial court granted on ground that such remedy is not available.

The judgment of the trial court was affirmed on appeal on two grounds that plaintiff was:

• claiming a loss to his account rather than a loss to the plan as a whole


• not seeking "equitable relief" within the meaning of ERISA Section 502(a).

The case was brought before the Supreme Court. It held that the Court of Appeal erred in finding that Plaintiff could not sue for his individual injury distinct from plan injuries. Although Sec. 502 (a)(2) does not provide a remedy from plan injuries, it permits recovery for fiduciary breaches that depletes the value of plan assets in a participant's individual account.

Hence, the Supreme Court reversed the judgment of the 4th Circuit Court.