| Litigants: | Donovan v. Bierwirth |
| Court: | United States Court of Appeals for the Second Circuit |
| Courtseal: | Seal of the United States Court of Appeals for the Second Circuit.svg |
| Arguedate: | March 19, |
| Argueyear: | 1982 |
| Decidedate: | May 10, |
| Decideyear: | 1982 |
| Fullname: | Raymond J. Donovan, Secretary of the United States Department of Labor v. John C. Bierwirth, Robert G. Freese and Carl A. Paladino |
| Citations: | 680 F.2d 263; 64 A.L.R.Fed. 580; 3 Employee Benefits Cas. 1417 |
| Prior: | 538 F. Supp. 463 (E.D.N.Y. 1981) |
| Subsequent: | Cert. denied, . |
| Judges: | Henry Friendly, Lawrence W. Pierce, Charles M. Metzner |
| Majority: | Friendly |
| Joinmajority: | unanimous |
| Lawsapplied: | Employee Retirement Income Security Act (ERISA), |
| Keywords: | Wages |
Donovan v. Bierwirth, 680 F.2d 263 (2d Cir. 1982), is a US labor law case,[1] concerning the fiduciary duty owed to an employee benefit plan governed by the Employee Retirement Income Security Act (ERISA).[2]
The Secretary of Labor claimed that trustees of the Grumman Corporation Pension Plan breached a fiduciary duty in ยงยง 1104(a)[3] and 1106(b)[4] by not tendering stock when LTV launched a takeover bid of Grumman Corp, and also by buying more shares.
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.