Indemnification Agreement Does Not Violate ERISA, California Federal Judge Rules

Indemnification Agreement Does Not Violate ERISA, California Federal Judge Rules

RIVERSIDE, Calif. - Employee Retirement Income Security Act Section 410(a) does not void an indemnification agreement between an employee stock ownership plan (ESOP) and its trustee where the agreement expressly prohibits indemnification if a court enters a final, nonappealable judgment finding the trustee liable for breach of fiduciary duties under ERISA, a federal court in California ruled March 15 in dismissing the U.S. Department of Labor's (DOL) claim (Seth D. Harris v. GreatBanc Trust Company, et al., No. EDCV12-1648, C.D. Calif.).

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