Plan Administrator Lacks Standing In Lawsuit Against Custodian, 7th Circuit Rules

CHICAGO - A pension plan administrator does not have constitutional standing to bring suit against the plan's custodian for refusing to make a distribution to the plan's participant because distributions were frozen as a result of a Michigan state court order in a post-judgment collection proceeding, and therefore, the administrator's injury was not "fairly traceable" to the custodian, the Seventh Circuit U.S. Court of Appeals affirmed May 20 (Leroy Johnson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., No. 12-3869, 7th Cir.; 2013 U.S. App. LEXIS 10006).

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