The U.S Court of Appeals for the First Circuit (covering Maine, Massachusetts, New Hampshire, Puerto Rico, and Rhode Island) recently awarded a victory to employers litigating claims “related to” certain employer-sponsored benefit plans.
On June 16, 2025, the court affirmed an award of summary judgment in favor of Santander Bank N.A. (“Santander”) in Orabona vs. Santander Bank, N.A., an action brought by a former employee who alleged the company terminated her employment in an effort to avoid paying her severance benefits. In rendering its decision, the First Circuit reaffirmed that employees cannot assert state law claims against employers if the resolution of such claims requires the analysis or interpretation of an Employee Retirement Income Security Act (ERISA) plan. The court reasoned that because Congress has promulgated federal laws governing the legal standards and enforcement remedies for disputes concerning ERISA benefits, any state law claim related to such benefits is “preempted,” i.e., superseded, by federal law, and therefore nonviable.
Plaintiff Lorna Orabona began working as a high-earning mortgage development officer for Santander’s predecessor in 2008. In 2022, the company terminated her employment “for cause” after it determined that she had sent company emails to her private email address in violation of Santander’s Code of Conduct. Around the time of Orabona’s termination, Santander also instituted a large-scale national layoff — which...
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