Cypen & Cypen NEWSLETTER for May 21, 2015 |
Stephen H. Cypen, Esq., Editor ![]() |
1. CLAIM FOR ONGOING BREACH OF FIDUCIARY DUTY TO MONITOR INVESTMENTS AND REMOVE IMPRUDENT ONES NOT BARRED BY 6-YEAR STATUTE OF LIMITATIONS: A fiduciary normally has the continuing duty of some kind to monitor investments and remove imprudent ones. A plaintiff may allege that a fiduciary breached the duty of prudence by failing properly to monitor investments and remove imprudent ones. In such case, so long as the allowed alleged breach of the continued duty occurred within six years of suit, the claim is timely. The U.S. Ninth Circuit Court of Appeals erred by applying a 6-year statutory bar based solely on the initial selection of three funds without considering the contours of the alleged breach of fiduciary duty. Tibble v. Edison International, Case No. 13-550 (U.S. May 18, 2015), as reported by benefitslink.com. 8. KEEP THOSE CARDS AND LETTERS COMING: Several readers regularly supply us with suggestions or tips for newsletter items. Please feel free to send us or point us to matters you think would be of interest to our readers. Subject to editorial discretion, we may print them. Rest assured that we will not publish any names as referring sources. 9. PLEASE SHARE OUR NEWSLETTER: Our newsletter readership is not limited to the number of people who choose to enter a free subscription. Many pension board administrators provide hard copies in their meeting agenda. Other administrators forward the newsletter electronically to trustees. In any event, please tell those you feel may be interested that they can subscribe to their own free copy of the newsletter at http://www.cypen.com/subscribe.htm. 10. REMEMBER, YOU CAN NEVER OUTLIVE YOUR DEFINED RETIREMENT BENEFIT.
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