Donovan v. Bierwirth, 680 F.2d 263 (2d Cir. 1982), is a US labor law case, concerning the fiduciary duty owed to an employee benefit plan governed by the Employee Retirement Income Security Act (ERISA)., , et seq.

Facts The Secretary of Labor claimed that trustees of the Grumman Corporation Pension Plan breached a fiduciary duty in §§ 1104(a). and 1106(b). by not tendering stock when LTV launched a takeover bid of Grumman Corp, and also by buying more shares.

Judgment For the Second Circuit, Judge Friendly held that faced with a conflict of interest, a fiduciary is expected to obtain independent counsel and perhaps to suspend his or her service as fiduciary for a time.

Judges Pierce and Metzner concurred.

See also

United States labor law

References

External links