''Donovan v. Bierwirth'', 680 F.2d 263 (2d Cir. 1982), is a
US labor law
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the " inequality of bargaining power" between employees and employers, especially employers "organized in ...
case, concerning the fiduciary duty owed to an employee benefit plan governed by the
Employee Retirement Income Security Act (ERISA).
Facts
The Secretary of Labor claimed that trustees of the Grumman Corporation Pension Plan breached a
fiduciary duty
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, fo ...
in ยงยง 1104(a) and 1106(b)
[.] by not tendering stock when
LTV launched a takeover bid of Grumman Corp, and also by buying more shares.
Judgment
For the Second Circuit, Judge Friendly held that faced with a conflict of interest, a fiduciary is expected to obtain independent counsel and perhaps to suspend his or her service as fiduciary for a time.
Judges Pierce and Metzner concurred.
See also
*
United States labor law
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the " inequality of bargaining power" between employees and employers, especially employers "organized in ...
References
External links
* {{caselaw source
, case = ''Donovan v. Bierwirth'', 680 F.2d 263 (2d Cir. 1982)
, courtlistener =https://www.courtlistener.com/opinion/405063/raymond-j-donovan-secretary-of-the-united-states-department-of-labor-v/
, justia =https://law.justia.com/cases/federal/appellate-courts/F2/680/263/200404/
, leagle =https://www.leagle.com/decision/1982943680f2d2631887
1982 in United States case law
United States Court of Appeals for the Second Circuit cases
United States labor case law
1982 in labor relations