{"ID":54822,"name":"Harris Trust \u0026 Savings Bank v. Salomon Smith Barney, Inc.","href":"https:\/\/api.oyez.org\/cases\/1999\/99-579","view_count":0,"docket_number":"99-579","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Harris Trust \u0026 Savings Bank","second_party":"Salomon Smith Barney, Inc.","timeline":[{"event":"Argued","dates":[955947600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/38392"},{"event":"Decided","dates":[960786000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/38393"}],"lower_court":{"ID":12,"name":"United States Court of Appeals for the Seventh Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/12"},"facts_of_the_case":"\u003Cp\u003ESection 406(a) of the Employee Retirement Income Security Act of 1974 (ERISA) bars a fiduciary of an employee benefit plan from causing the plan to engage in certain prohibited transactions with a \u0022party in interest.\u0022 Such a party encompasses entities that a fiduciary might be inclined to favor at the expense of the plan\u0027s beneficiaries. After the Ameritech Pension Trust (APT), an ERISA pension plan, allegedly entered into a transaction prohibited by ERISA with Salomon Smith Barney Inc., APT\u0027s fiduciaries sued Salomon under section 502(a)(3), which authorizes a fiduciary to bring a civil action to obtain appropriate equitable relief.\u0022 Salomon arguing that section 502(a)(3) only authorizes a suit against the fiduciary who caused the plan to enter the prohibited transaction. Ultimately, the District Court held that ERISA provides a private cause of action against nonfiduciaries who participate in a prohibited transaction. In reversing, the Court of Appeals held that the authority to sue under section 502(a)(3) does not extend to a suit against a nonfiduciary \u0022party in interest\u0022 to a transaction barred by section 406(a).\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes section 502(a)(3) of the Employee Retirement Income Security Act of 1974, which authorizes a \u0022participant, beneficiary, or fiduciary\u0022 of a plan to bring a civil action to obtain \u0022appropriate equitable relief\u0022 to redress violations of ERISA, extend to a suit against a nonfiduciary \u0022party in interest\u0022 to a transaction barred by section 406(a)?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EYes. In a unanimous opinion delivered by Justice Clarence Thomas, the Court held that Section 502(a)(3)\u0027s authorization to a plan \u0022participant, beneficiary, or fiduciary\u0022 to bring a civil action for \u0022appropriate equitable relief\u0022 extends to a suit against a nonfiduciary \u0022party in interest\u0022 to a prohibited transaction barred by section 406(a). \u0022We reject,\u0022 wrote Justice Thomas that, \u0022absent a substantive provision of ERISA expressly imposing a duty upon a nonfiduciary party in interest, the nonfiduciary party may not be held liable under [section 502(a)(3)].\u0022 Justice Thomas concluded that \u0022[section 502(a)(3)] itself imposes certain duties, and therefore that liability under that provision does not depend on whether ERISA\u0027s substantive provisions impose a specific duty on the party being sued.\u0022\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":17414,"name":"Beth S. 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