The logo of a Walmart Superstore is seen during the outbreak of the coronavirus disease (COVID-19), in Rosemead, California, U.S., June 11, 2020. Picture taken June 11, 2020. REUTERS/Mario Anzuoni
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A federal appeals court on Tuesday revived much of lawsuit by a Walmart greeter’s widow who blames the mega-retailer for the cancelation of her husband’s life insurance policy and for overcharging him for disability insurance premiums.
The 6th U.S. Circuit Court of Appeals said a lower court erred in dismissing Ruth Mae Chelf’s claims for breach of fiduciary duty based on the “ministerial function” exception to ERISA, the federal law governing employee benefit plans.
That defense was unavailable to Walmart because it protects only those “who have no power to make any decisions as to plan policy, interpretations, practices or procedures” from being held to the high standard of care required of fiduciaries, Circuit Judge Jane B. Stranch wrote for the appeals court.
“To the contrary, (Walmart) was a fiduciary as it indisputably exercised control over the Plan’s assets when it handled Mr. Chelf’s premiums, exercised control over the disposition of the Plan’s assets, and had discretionary authority over the...
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