COBRA notice--bankruptcy--stay. Buchanan v. Golden Casting Corporation Hourly Health Benefit Plan.
In an absence of special circumstances, the automatic stay that protects an employer from suit while its bankruptcy is pending does not apply to an action brought against its employee welfare benefit plan under ERISA because the plan, not the employer, is the proper entity to sue for benefits. Similarly, the employer's automatic stay does not apply to the individual fiduciary sued for breach of fiduciary duty in administering the plan. The bankrupt employer has no property interest in either the plan assets or the assets of the individual fiduciary and, therefore, the stay does not protect them from suit.
D016361:Bankruptcy / Q000331:legislation & jurisprudence*; D019461:Employee Retirement Income Security Act / Q000331:legislation & jurisprudence; D006264:Health Benefit Plans, Employee / Q000331:legislation & jurisprudence*; D006801:Humans; D014481:United States