Sacerdote v. Cammack Larhette Advisors, LLC, No. 18-1558 (2d Cir. 2019)Annotate this Case
This case arose from plaintiffs' action against NYU, alleging violations of the Employee Retirement Income Security Act (ERISA) in connection with two retirement plans sponsored by NYU (Sacerdote I). After the district court dismissed most, but not all of the causes of action, plaintiffs filed this action against affiliates of NYU and Cammack, an independent investment management company (Sacerdote II). The district court dismissed all claims against defendants.
The Second Circuit dismissed the district court's judgment, holding that the district court erred by determining that Cammack and NYU were in privity such that the rule against duplicate litigation applied to bar recovery against Cammack in Sacerdote II. In this case, Cammack and NYU's interests were not sufficiently identical to support a finding of privity; the bases for liability for NYU and Cammack were not necessarily the same; and it was possible that one party could be found liable and the other not. Cammack and NYU had separate and distinct responsibilities as co-fiduciaries to the plans at issue, and could be found liable for plaintiffs' injuries for separate reasons. Finally, the court held that the representative suit exception to a plaintiff's right to sue each defendant separately did not apply here.