Bland vs. Fiatfallis North America Inc.

(7th U.S. Circuit Court of Appeals, March 15, 2005)

–Ruling: ‘Lifetime’ language without reservation clauses in plan documents creates ambiguity about vesting.

The court held that the presence of “lifetime” language without reservation of rights clauses in several retiree benefit plan documents created ambiguity about whether retiree benefits had vested. The case was remanded to resolve this issue. Documents obtained by the plaintiff while serving on the employee benefits committee were inadmissible and not subject to disclosure, as the documents were protected by attorney-client privilege.

The breach of fiduciary duty exception, under which a fiduciary of an ERISA plan must make available to beneficiaries any communications with an attorney that are intended to assist in the administration of the plan, was not available because the amendment or termination of plan benefits is not a fiduciary action. Certain documents protected by the work-product doctrine may be discoverable, and would be addressed on remand.