Divided Loyalties: How the Metlife v. Glenn Standard Discounts ERISA Fiduciaries’ Conflicts of Interest

Professor Langbein, a noted ERISA scholar, has argued convincingly in favor of applying de novo review to ERISA benefit denials where the fiduciary acted under a conflict of interest. While the Supreme Court in MetLife rejected the de novo standard in favor of retaining Firestone’s arbitrary and capricious standard coupled with weighing the conflict as a factor, application of the MetLife standard yields a result that is so close to de novo review as to be virtually indistinguishable. By allowing the reviewing court to assign a discretionary weight to the conflict, it is uncertain how much, if any, deference will be given to the fiduciary’s decision. This discretionary weighing of the conflict thereby allows the reviewing court to overturn any fiduciary decision on the stated basis that the conflict warrants greater weight in the review.