Fluid Components Intl. v. Corporate Benefit Consultants

ORDER DENYING MOTION TO DISMISS AND REMANDING THE CASE

I. INTRODUCTION

Plaintiff Fluid Components Inti. (“FCI”) is the sponsor of a defined benefit plan (the “Plan”) qualified under the Employer Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq. (First Amended Complaint (“Complaint”) ¶ 10.) Defendants are companies and individuals who acted as professional consultants to FCI in the creation and operation of the Plan. Plaintiffs originally filed this case in state court and Defendants subsequently removed it based on ERISA preemption of Plaintiffs claims. Defendants have made a motion to dismiss on the basis of ERISA preemption. The parties have stipulated that should the Court deny the motion to dismiss, the entire action should be remanded to state court.

Plaintiffs claims are pleaded as state law claims for negligence, intentional misrepresentation, negligent misrepresentation, breach of common law fiduciary duty and nondisclosure of known facts. The question before the Court is whether ERISA preempts a state law claim for an outside consultant’s malpractice based on consulting and administrative services performed for Plaintiffs ERISA plan. While the…