Judy Batchelor v. Oak Hill Medical Group

This is an appeal from a grant of summary judgment dismissing plaintiffs’ claim for damages for breach of fiduciary duty under ERISA, 29 U.S.C. §§ 1001-1461 (1982 & Supp. IV 1986). Defendant Oak Hill Medical Group (“Oak Hill”) is a consortium of physicians operating several medical clinics. The plaintiffs are nurses ánd other medical service support personnel who work in those clinics. They sued Oak Hill after the pension fund administrator Oak Hill had selected went bankrupt. The district court granted summary judgment for Oak Hill because it found that Oak Hill owed no duty under ERISA toward plaintiffs, and because ERISA preempted any possible pendent state law claims.

The principal issue we must decide in this appeal is whether, under the provisions of ERISA, the plaintiffs, may maintain an action against Oak Hill for breach of fiduciary duties in connection with the selection of a third party as fund administrator. We find that a limited fiduciary duty under ERISA does exist under the facts alleged by plaintiffs, and therefore reverse and remand.

Plaintiffs sued for breach of fiduciary duty under 29 U.S.C. § 1109 (a). That section provides in pertinent part:

Standing for…