Eleventh Circuit ends ERISA exhaustion for statutory claims
Groom Law says the unanimous ruling leaves the exhaustion requirement in place for most denial-of-benefits claims.
At a glance
The Eleventh Circuit has overturned decades-old precedent requiring ERISA plaintiffs to exhaust administrative remedies before suing over statutory claims, including breach of fiduciary duty.
Groom principal Andrew Salek-Raham, quoted in Law360, said the remaining dispute is over how a suit is classified.
Under that split, a fiduciary-breach allegation can now reach court without first going through the plan's review process; most benefit denials still must clear it.
The Eleventh Circuit has overturned decades-old precedent requiring ERISA plaintiffs to exhaust administrative remedies before suing over statutory claims, including breach of fiduciary duty. Groom Law's summary describes the ruling as unanimous and says it leaves the exhaustion requirement in place for most denial-of-benefits claims.
Groom principal Andrew Salek-Raham, quoted in Law360, said the remaining dispute is over how a suit is classified. A case may be "really a claim for benefits that plaintiffs are trying to dress up as a breach of fiduciary duty claim" that should instead go through the administrative claims process.
Under that split, a fiduciary-breach allegation can now reach court without first going through the plan's review process; most benefit denials still must clear it.
Plans outside the Eleventh Circuit face the exhaustion requirement as before.
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