October Term 2013 · Docket 12-751
Does ERISA shield ESOP fiduciaries from prudence claims?
Plaintiffs seek damages for alleged mismanagement. Defendants seek a legal presumption of prudence.
Verified source milestones
- — An official oral-argument transcript was verified.
- — 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
Mr. Long argued that offering employer stock is presumptively prudent.
Mr. Kneedler addressed the interests of employees as plan participants.
justice_questions
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 11, lines 25-37 — Transcript, file page 11, lines 25-37
- Official Supreme Court Transcript — file page 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 33-41 — Transcript, file page 3, lines 33-41
- Official Supreme Court Transcript — file page 4, lines 17-21 — Transcript, file page 4, lines 17-21
- Official Supreme Court Transcript — file page 4, lines 37-43 — Transcript, file page 4, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 9-13 — Transcript, file page 4, lines 9-13
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 5, lines 31-41 — Transcript, file page 5, lines 31-41
- Official Supreme Court Transcript — file page 55, lines 45-3 — Transcript, file page 55, lines 45-3
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
- Official Supreme Court Transcript — file page 56, lines 7-13 — Transcript, file page 56, lines 7-13
- Official Supreme Court Transcript — file page 58, lines 4-7 — Transcript, file page 58, lines 4-7
- Official Supreme Court Transcript — file page 6, lines 43-7 — Transcript, file page 6, lines 43-7
- Official Supreme Court Transcript — file page 7, lines 29-39 — Transcript, file page 7, lines 29-39
- Official Supreme Court Transcript — file page 8, lines 35-39 — Transcript, file page 8, lines 35-39
- Official Supreme Court Transcript — file page 9, lines 15-23 — Transcript, file page 9, lines 15-23
- Official Supreme Court Transcript — file page 9, lines 49-19 — Transcript, file page 9, lines 49-19
A citizen's guide to the whole case
What this case is about
This case tests the standard of care for ERISA fiduciaries managing employee stock ownership plans.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
How the case got here
The Supreme Court heard oral argument in this case on April 2, 2014.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 58, lines 4-7 — Transcript, file page 58, lines 4-7
What each side wants
Plaintiffs want full fiduciary liability for stock losses.
Defendants want a presumption that stock offers are prudent.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
What each side says
Plaintiffs argue fiduciaries must act with undiluted loyalty.
Defendants argue statutory design implies a presumption of prudence.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
What the justices asked
Justice Sotomayor asked if the plan required exclusive stock purchases.
Justice Kagan asked about fiduciaries with inside information on value.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 11, lines 25-37 — Transcript, file page 11, lines 25-37
- Official Supreme Court Transcript — file page 3, lines 33-41 — Transcript, file page 3, lines 33-41
- Official Supreme Court Transcript — file page 4, lines 17-21 — Transcript, file page 4, lines 17-21
- Official Supreme Court Transcript — file page 4, lines 37-43 — Transcript, file page 4, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 9-13 — Transcript, file page 4, lines 9-13
- Official Supreme Court Transcript — file page 5, lines 31-41 — Transcript, file page 5, lines 31-41
- Official Supreme Court Transcript — file page 55, lines 45-3 — Transcript, file page 55, lines 45-3
- Official Supreme Court Transcript — file page 56, lines 7-13 — Transcript, file page 56, lines 7-13
- Official Supreme Court Transcript — file page 58, lines 4-7 — Transcript, file page 58, lines 4-7
- Official Supreme Court Transcript — file page 6, lines 43-7 — Transcript, file page 6, lines 43-7
- Official Supreme Court Transcript — file page 7, lines 29-39 — Transcript, file page 7, lines 29-39
- Official Supreme Court Transcript — file page 8, lines 35-39 — Transcript, file page 8, lines 35-39
- Official Supreme Court Transcript — file page 9, lines 15-23 — Transcript, file page 9, lines 15-23
- Official Supreme Court Transcript — file page 9, lines 49-19 — Transcript, file page 9, lines 49-19
Why it matters
This dispute defines the legal duty of care for plan managers. It determines the scope of fiduciary liability in corporate retirement plans.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
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 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 11, lines 25-37 — Transcript, file page 11, lines 25-37
- Official Supreme Court Transcript — file page 3, lines 33-41 — Transcript, file page 3, lines 33-41
- Official Supreme Court Transcript — file page 4, lines 17-21 — Transcript, file page 4, lines 17-21
- Official Supreme Court Transcript — file page 4, lines 37-43 — Transcript, file page 4, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 9-13 — Transcript, file page 4, lines 9-13
- Official Supreme Court Transcript — file page 5, lines 31-41 — Transcript, file page 5, lines 31-41
- Official Supreme Court Transcript — file page 55, lines 45-3 — Transcript, file page 55, lines 45-3
- Official Supreme Court Transcript — file page 56, lines 7-13 — Transcript, file page 56, lines 7-13
- Official Supreme Court Transcript — file page 58, lines 4-7 — Transcript, file page 58, lines 4-7
- Official Supreme Court Transcript — file page 6, lines 43-7 — Transcript, file page 6, lines 43-7
- Official Supreme Court Transcript — file page 7, lines 29-39 — Transcript, file page 7, lines 29-39
- Official Supreme Court Transcript — file page 8, lines 35-39 — Transcript, file page 8, lines 35-39
- Official Supreme Court Transcript — file page 9, lines 15-23 — Transcript, file page 9, lines 15-23
- Official Supreme Court Transcript — file page 9, lines 49-19 — Transcript, file page 9, lines 49-19
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 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
- Official Supreme Court Transcript — file page 24, lines 27-1 — Transcript, file page 24, lines 27-1
- Official Supreme Court Transcript — file page 3, lines 17-31 — Transcript, file page 3, lines 17-31
- Official Supreme Court Transcript — file page 43, lines 49-31 — Transcript, file page 43, lines 49-31
- Official Supreme Court Transcript — file page 56, lines 5-5 — Transcript, file page 56, lines 5-5
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.