October Term 2006 · Docket 05-1448
Must an employer consider merging pension plans before terminating them?
Crown Vantage wants to end over-funded pension plans without merging them. The union argues the law requires considering a merger first.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Crown Vantage argues it had no duty to consider a merger.
The union argues the law requires considering a merger as a fiduciary duty.
justice_question
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 19-27 — Transcript, file page 10, lines 19-27
- Official Supreme Court Transcript — file page 10, lines 29-31 — Transcript, file page 10, lines 29-31
- Official Supreme Court Transcript — file page 10, lines 37-47 — Transcript, file page 10, lines 37-47
- Official Supreme Court Transcript — file page 11, lines 15-23 — Transcript, file page 11, lines 15-23
- Official Supreme Court Transcript — file page 11, lines 3-11 — Transcript, file page 11, lines 3-11
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
- Official Supreme Court Transcript — file page 4, lines 7-17 — Transcript, file page 4, lines 7-17
- Official Supreme Court Transcript — file page 5, lines 25-49 — Transcript, file page 5, lines 25-49
- Official Supreme Court Transcript — file page 6, lines 35-51 — Transcript, file page 6, lines 35-51
- Official Supreme Court Transcript — file page 7, lines 37-23 — Transcript, file page 7, lines 37-23
- Official Supreme Court Transcript — file page 8, lines 31-35 — Transcript, file page 8, lines 31-35
- Official Supreme Court Transcript — file page 8, lines 45-19 — Transcript, file page 8, lines 45-19
- Official Supreme Court Transcript — file page 9, lines 35-45 — Transcript, file page 9, lines 35-45
- Official Supreme Court Transcript — file page 9, lines 51-9 — Transcript, file page 9, lines 51-9
A citizen's guide to the whole case
What this case is about
Crown Vantage filed for bankruptcy and ended twelve pension plans. The union claims the company ignored a legal duty to consider merging those plans. The company says it had no such duty.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
How the case got here
The Supreme Court heard oral argument in this case on April 24, 2007.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 7-17 — Transcript, file page 4, lines 7-17
What each side wants
Crown Vantage wants the Court to say it had no duty to consider a merger.
The union wants the Court to say the company must consider a merger before terminating plans.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
What each side says
Crown Vantage argues an employer has no fiduciary duty to consider merging plans.
The union argues the law defines a fiduciary duty that includes considering a merger.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
What the justices asked
Justice Kennedy asked whether the duty is a fiduciary or sponsor obligation.
Justice Souter asked what options exist when a plan terminates, including mergers.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 19-27 — Transcript, file page 10, lines 19-27
- Official Supreme Court Transcript — file page 10, lines 29-31 — Transcript, file page 10, lines 29-31
- Official Supreme Court Transcript — file page 10, lines 37-47 — Transcript, file page 10, lines 37-47
- Official Supreme Court Transcript — file page 11, lines 15-23 — Transcript, file page 11, lines 15-23
- Official Supreme Court Transcript — file page 11, lines 3-11 — Transcript, file page 11, lines 3-11
- Official Supreme Court Transcript — file page 5, lines 25-49 — Transcript, file page 5, lines 25-49
- Official Supreme Court Transcript — file page 6, lines 35-51 — Transcript, file page 6, lines 35-51
- Official Supreme Court Transcript — file page 7, lines 37-23 — Transcript, file page 7, lines 37-23
- Official Supreme Court Transcript — file page 8, lines 31-35 — Transcript, file page 8, lines 31-35
- Official Supreme Court Transcript — file page 8, lines 45-19 — Transcript, file page 8, lines 45-19
- Official Supreme Court Transcript — file page 9, lines 35-45 — Transcript, file page 9, lines 35-45
- Official Supreme Court Transcript — file page 9, lines 51-9 — Transcript, file page 9, lines 51-9
Why it matters
This case defines the limits of an employer's duty when ending pension plans. It determines whether companies must explore merging plans before terminating them. The outcome shapes how employers manage over-funded pension assets during bankruptcy.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 19-27 — Transcript, file page 10, lines 19-27
- Official Supreme Court Transcript — file page 10, lines 29-31 — Transcript, file page 10, lines 29-31
- Official Supreme Court Transcript — file page 10, lines 37-47 — Transcript, file page 10, lines 37-47
- Official Supreme Court Transcript — file page 11, lines 15-23 — Transcript, file page 11, lines 15-23
- Official Supreme Court Transcript — file page 11, lines 3-11 — Transcript, file page 11, lines 3-11
- Official Supreme Court Transcript — file page 4, lines 7-17 — Transcript, file page 4, lines 7-17
- Official Supreme Court Transcript — file page 5, lines 25-49 — Transcript, file page 5, lines 25-49
- Official Supreme Court Transcript — file page 6, lines 35-51 — Transcript, file page 6, lines 35-51
- Official Supreme Court Transcript — file page 7, lines 37-23 — Transcript, file page 7, lines 37-23
- Official Supreme Court Transcript — file page 8, lines 31-35 — Transcript, file page 8, lines 31-35
- Official Supreme Court Transcript — file page 8, lines 45-19 — Transcript, file page 8, lines 45-19
- Official Supreme Court Transcript — file page 9, lines 35-45 — Transcript, file page 9, lines 35-45
- Official Supreme Court Transcript — file page 9, lines 51-9 — Transcript, file page 9, lines 51-9
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
- Official Supreme Court Transcript — file page 18, lines 41-19 — Transcript, file page 18, lines 41-19
- Official Supreme Court Transcript — file page 27, lines 29-37 — Transcript, file page 27, lines 29-37
- Official Supreme Court Transcript — file page 4, lines 19-23 — Transcript, file page 4, lines 19-23
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.