ERISA: Is Discovery Really Limited?

When a lawsuit is brought under the Employee Retirement Income Security Act, 29 U.S.C. 1001 et seq., ("ERISA") the defendant often times will attempt to limit the scope of discovery to the "claims file" or the "administrative record." However, whether discovery can be so limited will largely depend upon the standard of review. In this regard, federal courts have recognized three distinct standards of review: (1) de novo; (2) arbitrary and capricious; and (3) heightened arbitrary and capricious.

The United States Supreme Court has held that the denial of benefits challenged under ERISA is to be reviewed under a de novo standard, unless the plan provides the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan. See Firestone Tire and Rubber Co. v. Bruch, 489 U.S. 101, 115 (1989). Courts have tended to apply the de novo standard when the plan confers upon the administrator the authority to make initial eligibility