Tibble v. Edison Int'l (13-550)
argument 13-550Tibble v. Edison Int'l
Supreme Court of the United States
59 min
7 speakers
8 chapters
transcribed 5 days ago
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What is the central legal question the Supreme Court is reviewing in Tibble v. Edison International?
We'll hear argument next today in thirteen five five zero, Tibble versus Edison International. Mr Frederick. Thank you, Mr Chief Justice, and may it please the court. This court granted Certieri to decide whether Arissa's statute of limitations bars claims for breaches of fiduciary duty regarding investment options that were added to a plan more than six years before the suit was filed. The answer is no. The statute does not bar such claims for three reasons. First, ERISA's fiduciary duties include monitoring existing investment options and removing imprudent ones. Second, each failure to review and remove an imprudent investment option starts a new statute of limitations.
is some evidence as to what exactly that monitoring entails. I I took your uh brother's uh responsive brief. as saying it can't be a f a complete due diligence that you do when you buy something, otherwise the funds would grind to a halt. So Where in The record. Is there some proof of what the monitoring or what the level of monitoring should have been and what the breach was here? Justice
Sodemeyer, we were precluded at summary judgment from making the argument that the continued imprudence of maintaining these investment options was a breach of fiduciary duty. The district court's summary judgment order, and I would direct the court to petition appendix two sixty two to two sixty three. Barred us from bringing imprudence claims as to the funds added in nineteen ninety nine. At page one hundred eighty in the petition appendix, the district court explained that applying a circuit precedent known as Phillips. The Plaintiffs had to prove that there was a change in circumstances significant enough to make the uh continued investment in that uh investment option an imprudent one. So the theory that we were precluded by the summary judgment order from advancing was the theory that keeping this investment option available
uh during this time period was imprudent.
But if if if we agree that there had to be some significant event or change that would trigger The uh the need to re examine this investment. Then we would affirm.
That's correct. Okay. Um what what happened at trial was that after the summary judgment order The judge barely opened the door to say, if plaintiffs you can show that there was a significant enough change, I'll allow you to prove that there was that it was equivalent to the new selection of an investment option. And and we lost on that issue as a factual matter. That was affirmed on appeal.
has to be reviewed every year as though it was a new purchase?
No. Our position is that the periodic duty to monitor requires at least some familiarity with the filings of that particular fund and an awareness of what the expenses and performance of it are. This expense ratio information, Justice Scalia, is readily available on the internet, it is readily available with a phone call or two, it is part of the SEC filings, and unlike an initial review where a fund manager would look at thousands of mutual funds in the industry All that we're saying here is that the trustee should have looked at what was publicly available information about the very mutual funds that were part of this particular plan.
that there was this committee that met Periodically. Two reviewed investments. I think you said they met quarterly. Correct. And that there had been as a result of those quarterly reviews. Changes. That's correct. Investments.
That's correct. And in fact, the district court found that as to a fund that was being reviewed in two thousand three, they discovered that there were institutional shares available and they immediately switched to the lower cost institutional shares. But the district court further found that as to the other funds that were added in two thousand two the trustees had never made an inquiry about the availability of lower cost institutional funds.
I that was one of the questions I had in my own mind. Did you ever argue below that Once they found out about the institutional um the institutional uh funds
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Chapters
8 chapters
1
What is the central legal question the Supreme Court is reviewing in Tibble v. Edison International?
0:01–7:52
2
How does the petition argue that the six‑year statute of limitations does NOT bar a claim for imprudent monitoring?
7:52–14:19
3
What does the petition define as the fiduciary’s ongoing duty to monitor and remove imprudent investment options?
14:19–22:54
4
When does a “change in circumstances” trigger a new limitations period under ERISA?
22:54–30:39
5
What factual findings did the district court make about the 2002 and 1999 fund selections?
30:39–37:39
6
Why do the Second and Seventh Circuits differ from the Ninth, Fourth, and Eleventh Circuits on monitoring claims?
37:39–44:23
7
How do the parties dispute the scope of the fiduciary’s duty to look for cheaper share classes?
44:23–51:31
8
What relief does the petition request from the Supreme Court and why?
51:31–59:42