Last term’s U.S. Supreme Court decision upholding time limitations to sue regarding Employee Retirement Income Security Act welfare benefit plans, as well as the cases decided since by lower courts, provides important guidance to drafters of ERISA plan provisions. Those charged with drafting such plans would be well served to include contractual limitations on the time to sue in order to provide nationwide unanimity in enforcement, avoid the litigation of stale claims and set expectations of plan participants.
In Heimeshoff v. Hartford Life and Accident Insurance, 134 S.Ct. 604, 187 L.Ed. 2d 529 (2013), the Supreme Court unanimously held under ERISA that a contractual limitation on the time to file suit (sometimes referred to as a contractual statute of limitations) is enforceable unless that period is “unreasonably short” or contrary to a controlling statute. Resolving a circuit split, the Supreme Court further held that the limitations period can begin to run before the participant’s cause of action accrues.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
