October Term 2021 · Docket 19-1401
Does ERISA require plan administrators to choose low-cost investment options?
the sides that brought the case claim Northwestern University breached fiduciary duties by selecting high-cost funds. The university argues this case threatens to overhaul retirement plan management through damages lawsuits.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
- — An official Court opinion 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. Frederick argued that Congress enacted ERISA to impose the highest known fiduciary duty.
Mr. Garre argued that this case is part of a wave of lawsuits aimed at changing fiduciary practices through damages.
Mr. Huston argued that ERISA text requires administrators to act with care, skill, prudence, and diligence.
Mr. Frederick urged the Court to remand the case because the lower court treated it as a motion to dismiss.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 35-1 — Transcript, file page 10, lines 35-1
- Official Supreme Court Transcript — file page 11, lines 13-19 — Transcript, file page 11, lines 13-19
- Official Supreme Court Transcript — file page 11, lines 35-41 — Transcript, file page 11, lines 35-41
- Official Supreme Court Transcript — file page 12, lines 29-7 — Transcript, file page 12, lines 29-7
- Official Supreme Court Transcript — file page 13, lines 13-15 — Transcript, file page 13, lines 13-15
- Official Supreme Court Transcript — file page 13, lines 21-23 — Transcript, file page 13, lines 21-23
- Official Supreme Court Transcript — file page 13, lines 27-29 — Transcript, file page 13, lines 27-29
- Official Supreme Court Transcript — file page 13, lines 33-35 — Transcript, file page 13, lines 33-35
- Official Supreme Court Transcript — file page 13, lines 45-11 — Transcript, file page 13, lines 45-11
- Official Supreme Court Transcript — file page 14, lines 17-25 — Transcript, file page 14, lines 17-25
- Official Supreme Court Transcript — file page 14, lines 29-15 — Transcript, file page 14, lines 29-15
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 65, lines 29-37 — Transcript, file page 65, lines 29-37
- Official Supreme Court Transcript — file page 65, lines 49-15 — Transcript, file page 65, lines 49-15
- Official Supreme Court Transcript — file page 67, lines 25-21 — Transcript, file page 67, lines 25-21
- Official Supreme Court Transcript — file page 68, lines 33-43 — Transcript, file page 68, lines 33-43
- Official Supreme Court Transcript — file page 68, lines 47-11 — Transcript, file page 68, lines 47-11
- Official Supreme Court Transcript — file page 69, lines 15-15 — Transcript, file page 69, lines 15-15
- Official Supreme Court Transcript — file page 69, lines 33-35 — Transcript, file page 69, lines 33-35
- Official Supreme Court Transcript — file page 69, lines 39-41 — Transcript, file page 69, lines 39-41
- Official Supreme Court Transcript — file page 71, lines 25-37 — Transcript, file page 71, lines 25-37
- Official Supreme Court Transcript — file page 71, lines 49-25 — Transcript, file page 71, lines 49-25
- Official Supreme Court Transcript — file page 72, lines 39-41 — Transcript, file page 72, lines 39-41
- Official Supreme Court Transcript — file page 73, lines 21-31 — Transcript, file page 73, lines 21-31
- Official Supreme Court Transcript — file page 8, lines 17-39 — Transcript, file page 8, lines 17-39
- Official Supreme Court Transcript — file page 86, lines 9-25 — Transcript, file page 86, lines 9-25
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
A citizen's guide to the whole case
What this case is about
This case tests the scope of fiduciary duties under ERISA. the sides that brought the case argue that selecting expensive funds violates the duty of prudence. The university contends that courts should not second-guess investment choices through retroactive damages claims.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
How the case got here
The Supreme Court heard oral argument in this case on December 6, 2021.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 86, lines 9-25 — Transcript, file page 86, lines 9-25
What each side wants
the sides that brought the case want the Court to reverse the dismissal and allow their damages claim to proceed.
The university wants the Court to affirm the dismissal and block the damages claim.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
What each side says
the sides that brought the case argue that wasting beneficiaries' money on high-cost funds is imprudent and violates ERISA's fiduciary duty.
The university argues that allowing damages actions for past conduct would revolutionize fiduciary practices and threaten university retirement plans.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
What the justices asked
Justice Breyer asked where the complaint states that the university did not offer lower-cost share classes.
Justice Thomas asked how much cost difference would be required before a strategy becomes legally significant.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 35-1 — Transcript, file page 10, lines 35-1
- Official Supreme Court Transcript — file page 11, lines 13-19 — Transcript, file page 11, lines 13-19
- Official Supreme Court Transcript — file page 11, lines 35-41 — Transcript, file page 11, lines 35-41
- Official Supreme Court Transcript — file page 12, lines 29-7 — Transcript, file page 12, lines 29-7
- Official Supreme Court Transcript — file page 13, lines 13-15 — Transcript, file page 13, lines 13-15
- Official Supreme Court Transcript — file page 13, lines 21-23 — Transcript, file page 13, lines 21-23
- Official Supreme Court Transcript — file page 13, lines 27-29 — Transcript, file page 13, lines 27-29
- Official Supreme Court Transcript — file page 13, lines 33-35 — Transcript, file page 13, lines 33-35
- Official Supreme Court Transcript — file page 13, lines 45-11 — Transcript, file page 13, lines 45-11
- Official Supreme Court Transcript — file page 14, lines 17-25 — Transcript, file page 14, lines 17-25
- Official Supreme Court Transcript — file page 14, lines 29-15 — Transcript, file page 14, lines 29-15
- Official Supreme Court Transcript — file page 65, lines 29-37 — Transcript, file page 65, lines 29-37
- Official Supreme Court Transcript — file page 65, lines 49-15 — Transcript, file page 65, lines 49-15
- Official Supreme Court Transcript — file page 67, lines 25-21 — Transcript, file page 67, lines 25-21
- Official Supreme Court Transcript — file page 68, lines 33-43 — Transcript, file page 68, lines 33-43
- Official Supreme Court Transcript — file page 68, lines 47-11 — Transcript, file page 68, lines 47-11
- Official Supreme Court Transcript — file page 69, lines 15-15 — Transcript, file page 69, lines 15-15
- Official Supreme Court Transcript — file page 69, lines 33-35 — Transcript, file page 69, lines 33-35
- Official Supreme Court Transcript — file page 69, lines 39-41 — Transcript, file page 69, lines 39-41
- Official Supreme Court Transcript — file page 71, lines 25-37 — Transcript, file page 71, lines 25-37
- Official Supreme Court Transcript — file page 71, lines 49-25 — Transcript, file page 71, lines 49-25
- Official Supreme Court Transcript — file page 72, lines 39-41 — Transcript, file page 72, lines 39-41
- Official Supreme Court Transcript — file page 73, lines 21-31 — Transcript, file page 73, lines 21-31
- Official Supreme Court Transcript — file page 8, lines 17-39 — Transcript, file page 8, lines 17-39
Why it matters
The outcome defines the standard for selecting retirement plan investments. It determines whether plan administrators face personal liability for choosing higher-cost funds. This affects the financial security of millions of workers and the structure of university retirement plans.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
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 35-1 — Transcript, file page 10, lines 35-1
- Official Supreme Court Transcript — file page 11, lines 13-19 — Transcript, file page 11, lines 13-19
- Official Supreme Court Transcript — file page 11, lines 35-41 — Transcript, file page 11, lines 35-41
- Official Supreme Court Transcript — file page 12, lines 29-7 — Transcript, file page 12, lines 29-7
- Official Supreme Court Transcript — file page 13, lines 13-15 — Transcript, file page 13, lines 13-15
- Official Supreme Court Transcript — file page 13, lines 21-23 — Transcript, file page 13, lines 21-23
- Official Supreme Court Transcript — file page 13, lines 27-29 — Transcript, file page 13, lines 27-29
- Official Supreme Court Transcript — file page 13, lines 33-35 — Transcript, file page 13, lines 33-35
- Official Supreme Court Transcript — file page 13, lines 45-11 — Transcript, file page 13, lines 45-11
- Official Supreme Court Transcript — file page 14, lines 17-25 — Transcript, file page 14, lines 17-25
- Official Supreme Court Transcript — file page 14, lines 29-15 — Transcript, file page 14, lines 29-15
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 65, lines 29-37 — Transcript, file page 65, lines 29-37
- Official Supreme Court Transcript — file page 65, lines 49-15 — Transcript, file page 65, lines 49-15
- Official Supreme Court Transcript — file page 67, lines 25-21 — Transcript, file page 67, lines 25-21
- Official Supreme Court Transcript — file page 68, lines 33-43 — Transcript, file page 68, lines 33-43
- Official Supreme Court Transcript — file page 68, lines 47-11 — Transcript, file page 68, lines 47-11
- Official Supreme Court Transcript — file page 69, lines 15-15 — Transcript, file page 69, lines 15-15
- Official Supreme Court Transcript — file page 69, lines 33-35 — Transcript, file page 69, lines 33-35
- Official Supreme Court Transcript — file page 69, lines 39-41 — Transcript, file page 69, lines 39-41
- Official Supreme Court Transcript — file page 71, lines 25-37 — Transcript, file page 71, lines 25-37
- Official Supreme Court Transcript — file page 71, lines 49-25 — Transcript, file page 71, lines 49-25
- Official Supreme Court Transcript — file page 72, lines 39-41 — Transcript, file page 72, lines 39-41
- Official Supreme Court Transcript — file page 73, lines 21-31 — Transcript, file page 73, lines 21-31
- Official Supreme Court Transcript — file page 8, lines 17-39 — Transcript, file page 8, lines 17-39
- Official Supreme Court Transcript — file page 86, lines 9-25 — Transcript, file page 86, lines 9-25
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Verified official opinions and orders
Title and summary sources
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
- Official Supreme Court Transcript — file page 4, lines 23-15 — Transcript, file page 4, lines 23-15
- Official Supreme Court Transcript — file page 42, lines 37-33 — Transcript, file page 42, lines 37-33
- Official Supreme Court Transcript — file page 59, lines 23-19 — Transcript, file page 59, lines 23-19
- Official Supreme Court Transcript — file page 65, lines 15-27 — Transcript, file page 65, lines 15-27
- Official Supreme Court Transcript — file page 94, lines 15-53 — Transcript, file page 94, lines 15-53
Revision history
- Revision 1 · Post Opinion ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Post Opinion ·
Correction: Migrated to the dated official Court activity contract without model use.