Self-Funded Employee Benefit Plans in California Retain their Discretion to Decide Benefits and Are Less Likely to be Subject to Discovery in ERISA Litigation

The Ninth Circuit Court of Appeals recently held that the Employee Retirement Income Security Act of 1974 (“ERISA”) preempts application of California’s anti-discretionary clause law to self-funded employee benefits plans. From a practical standpoint, the decision: (1) prevents courts from reviewing evidence outside the plan administrator’s decision, (2) limits claimants’ (plan participants or beneficiaries) ability to seek discovery in ERISA cases, and (3) requires courts to give greater deference to administrative decisions.

Campbell Litigation, P.C.October 5, 2017ERISA, 9th CircuitComment

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