dard was inappropriate for ERISA claims because the LMRA did not expressly make labor/management pension plan decisions reviewable, unlike the ERISA statute. The Court stated that principals of trust law must settle the proper standard of review for ERISA actions. Id. at 102. Under the principals of trust law, when a trustee is given the power of discretion to interpret the trust plans terms, a court will uphold a reasonable interpretation by that trustee. Id. at 111. However, when a trustee is not given the power to interpret a plan’s terms, then the trustee’s decision must be given a de novo review. Id. In Brunch, the plan did not give the trustee the power to interpret and construe the plan’s terms; therefore no deference was given to the administrator’s discretion. Since the plan did not grant any discretionary authority to the plan administrator, the appeal was given a de novo review by the Court. Id. at 118. Here, the Court extracted a principle developed through trust law, granting a trustee the ability to use his/her discretion, and has blended this principle in ERISA enforcement. Id. The specific rule of law obtained from Brunch holds that all appeals from administrative reviews are to be given a de novo review, unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe terms of plan, regardless of whether the administrator or fiduciary is operating under a conflict of interest. Id. at 119. This standard is presently controlling in all jurisdictions reviewing an ERISA claim whether in state or federal court.c. Different Interpretations of Firestone v. Brunch There have been three separate interpretations of the Brunch decision. 16 Employee Rel. L.J. 403. These three interpretations are: the “strict” interpretation, the “flexible arbitrary and capricious” interpretation, and the “sh...
