Justia U.S. Supreme Court Opinion Summaries

Respondents, on behalf of beneficiaries of the CIGNA Corporation's ("CIGNA") Pension Plan, challenged the new plan's adoption, claiming that CIGNA's notice of the changes was improper, particularly because the new plan in certain respects provided them with less generous benefits. At issue was whether the district court applied the correct legal standard, namely, a "likely harm" standard, in determining that CIGNA's notice violations caused its employees sufficient injury to warrant legal relief. The Court held that although section 502(a)(1)(B) of the Employee Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C. 1022(a), 1024(b), 1054(h), did not give the district court authority to reform CIGNA's plan, relief was authorized by section 502(a)(3), which allowed a participant, beneficiary, or fiduciary "to obtain other appropriate relief" to redress violations of ERISA "or the [plan's] terms." The Court also held that, because section 502(a)(3) authorized "appropriate equitable relief" for violations of ERISA, the relevant standard of harm would depend on the equitable theory by which the district court provided relief. Therefore, the Court vacated and remanded for further proceedings.

Montana alleged that Wyoming breached Article V(A) of the Yellowstone River Compact ("Compact"), 65 Stat. 666, by allowing its pre-1950 water appropriators to increase their net water consumption by improving the efficiency of their irrigation systems where the new systems employed sprinklers that reduced the amount of wastewater returned to the river, thus depriving Montana's downstream pre-1950 appropriators of water to which they were entitled. At issue was whether Article V(A) allowed Wyoming's pre-1950's water users, diverting the same quantity of water for the same irrigation purpose and acreage as before 1950, to increase their consumption of water by improving their irrigation systems even if it reduced the flow of water to Montana's pre-1950 users. The Court held that Montana's increased-efficiency allegation failed to state a claim for breach of the Compact under Article V(A) where Article V(A) incorporated the ordinary doctrine of appropriation without significant qualification and where, in Wyoming and Montana, that doctrine allowed appropriators to improve their irrigation systems, even to the detriment of downstream appropriators.

Respondents filed a complaint against AT&T Mobility LLC ("AT&T"), which was later consolidated with a putative class action, alleging that AT&T had engaged in false advertising and fraud by charging sales tax on phones it advertised as free. AT&T moved to compel arbitration under the terms of its contract with respondents and respondents opposed the motion contending that the arbitration agreement was unconscionable and unlawfully exculpatory under California law because it disallowed classwide procedures. The district court denied AT&T's motion in light of Discover Bank v. Superior Court and the Ninth Circuit affirmed. At issue was whether the Federal Arbitration Act ("FAA"), 9 U.S.C. 2, prohibited states from conditioning the enforceability of certain arbitration agreements on the availability of classwide arbitration procedures. The Court held that, because it "stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress," quoting Hines v. Davidowitz, California's Discover Bank rule was preempted by the FAA. Therefore, the Court reversed the Ninth Circuit's ruling and remanded for further proceedings consistent with the opinion.

Respondent filed suit in Federal District Court against federal officials who managed tribal assets held in trust by the Federal Government alleging violations of fiduciary duty and requesting equitable relief. The next day after filing the suit, respondent filed this action against the United States in the Court of Federal Claims ("CFC") alleging almost identical violations and requesting money damages. At issue was whether a common factual basis like the one apparent in respondent's suits sufficed to bar jurisdiction under 28 U.S.C. 1500. The Court held that two suits were for or in respect to the same claim, precluding CFC jurisdiction, if they are based on substantially the same operative facts, regardless of the relief sought in each suit. The Court also held that the substantial overlap in operative facts between respondent's District Court and CFC suits precluded jurisdiction in the CFC where both actions alleged that the United States held the same assets in trust for respondent's benefit and they describe almost identical breaches of fiduciary duties.