In a case of first impression, the U.S. Court of Appeals for the Eleventh Circuit has ruled that the Employee Retirement Income Security Act creates a cause of action for a beneficiary to recover monetary benefits lost because of a breach of fiduciary duty in the plan enrollment process.

The appeals court, reversing a decision by the U.S. District Court for the Southern District of Florida, said beneficiaries are allowed under Section 1132(a)(3) of the ERISA to sue for lost compensation due to an employer’s breach of fiduciary duty.