One controversial issue with respect to breach of fiduciary duty claims under ERISA is that while an individual plaintiff ( e.g. , a plan participant) may bring a civil action under Section 502(a)(2), the Supreme Court has found that any recovery must "inure[] to the benefit of a plan as a whole." LaRue v. DeWolff, Boberg & Associates

In LaRue , the plaintiff, a participant in a 401(k) plan administered by his former employer, requested that plan administrators change an investment in his individual account. The plan administrators failed to make this change, and the individual's account allegedly suffered losses of approximately $150,000. LaRue brought an action against his former employer and the 401(k) plan, claiming the plan administrator breached his fiduciary duty by neglecting to properly follow the investment instructions. Given that the plaintiff sought to recover losses only for himself, the participant could not sue under Section 502(a)(2).
In LaRue v. DeWolff, Boberg & Associates , a participant in a 401(k) plan requested that plan administrators change an investment in his individual account. The plan administrators failed to make this change, and the individual's account allegedly suffered losses. The participant brought an action against his former employer and the 401(k) plan, claiming the plan administrator breached his fiduciary duty by neglecting to properly follow the investment instructions. At issue in the LaRue case was whether an individual could bring an action under ERISA to recover the losses. The Supreme Court held that a plan participant in a 401(k) plan could sue a plan fiduciary under Section 502(a)(2) of ERISA to recover losses caused by a fiduciary breach that only affected his individual account. This report discusses breach of fiduciary duty claims under ERISA Section 502(a)(2) and the LaRue case, and will be updated as events warrant.