Shea v. Esensten, 107 F.3d 625 (8th Cir. 1997). · Go Syfert
Shea v. Esensten, 107 F.3d 625 (8th Cir. 1997). Cases Citing This Book View Copy Cite
173 citation events (101 in the last 25 years) across 37 distinct courts.
Strongest positive: Adam Ruessler v. Boilermaker-Blacksmith National Pension Trust (ca8, 2023-04-03)
Treatment trajectory · 1997 → 2026 · click a year to view as-of
1997 2011 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
cited Cited as authority (rule) Adam Ruessler v. Boilermaker-Blacksmith National Pension Trust
8th Cir. · 2023 · confidence medium
This duty “includes the obligation to deal fairly with all plan members.” Id. at 977 (quoting Shea v. Esensten, 107 F.3d 625, 628 (8th Cir. 1997)).
discussed Cited as authority (rule) Corey Skelton v. Reliance Standard Life Ins Co
8th Cir. · 2022 · confidence medium
“ERISA fiduciaries must comply with the common law duty of loyalty, which includes the obligation to deal fairly and honestly with all plan members.” Shea v. Esensten, 107 F.3d 625, 628 (8th Cir. 1997).
discussed Cited as authority (rule) Edward Delker v. Mastercard International Inc.
8th Cir. · 2022 · confidence medium
It is important to note “that the duty of loyalty requires an ERISA fiduciary to communicate any material facts which could adversely affect a plan member’s interests.” Shea v. Esensten, 107 F.3d 625, 628 (8th Cir. 1997).
discussed Cited as authority (rule) Vercellino v. Optum Services, Inc.
D. Neb. · 2020 · confidence medium
Ed. 2d 130 (finding misrepresentation where company assured participants of secure benefits to induce transfer knowing it was insolvent); Braden, 588 F.3d at 589, 603 (holding claim for breach stated where plan was alleged to have not disclosed trustee’s financial interest in investment fees, resulting in higher fees); Kalda, 481 F.3d at 642-43 (considering misrepresentation where promise to retroactively fund plan was allegedly broken); Shea v. Esensten, 107 F.3d 625, 626-27 (8th Cir. 1997) (holding claim for breach stated where plan failed to disclose incentive scheme minimizing referrals,…
examined Cited as authority (rule) Little Wound School v. American United Life Insurance Company (3×)
D.S.D. · 2018 · confidence medium
As in Shea, the result in this case “would clearly affect how [an] ERISA-regulated benefit plan is administered[.]” Shea, 107 F.3d at 627.
examined Cited as authority (rule) Isna Wica Owayawa v. American United Life Insurance Company (3×)
D.S.D. · 2018 · confidence medium
As in Shea, the result in this case “would clearly affect how [an] ERISA-regulated benefit plan is administered[.]” Shea, 107 F.3d at 627.
discussed Cited as authority (rule) James Boyd v. ConAgra Foods, Inc.
8th Cir. · 2018 · confidence medium
This includes an “obligation to deal fairly and honestly with all plan members.” Shea v. Esensten, 107 F.3d 625, 628 (8th Cir. 1997) (citing Varity Corp. v. Howe, 516 U.S. 489, 506 , 116 S.Ct. 1065 , 134 L.Ed.2d 130 (1996)).
cited Cited as authority (rule) CeCelia Ibson v. United Healthcare Services
8th Cir. · 2017 · confidence medium
Corp., 338 F.3d 926 , 931 (8th Cir. 2003) (citing Shea v. Esensten, 107 F.3d 625, 628 (8th Cir. 1997)).
discussed Cited as authority (rule) Keokuk Area Hospital, Inc. v. Two Rivers Insurance Co. (2×)
S.D. Iowa · 2017 · confidence medium
The Hospital’s negligence claim, then, is one “of misconduct against the administrator of an employer’s health plan [that] fall[s] comfortably within ERISA’s broad preemption provision.” Shea, 107 F.3d at 627.
cited Cited as authority (rule) Jensen v. Solvay Chemicals, Inc.
10th Cir. · 2010 · confidence medium
Inc., 93 F.3d 1171, 1181-82 (3d Cir.1996); Shea v. Esensten, 107 F.3d 625, 628-29 (8th Cir.1997); Eddy v. Colo *659 nial Life Ins.
discussed Cited as authority (rule) Jeremy Braden v. Wal-Mart Stores, Inc. (2×) also: Cited "see"
8th Cir. · 2009 · confidence medium
Morever, in some circumstances fiduciaries must on their own initiative "disclose any material information that could adversely affect a participant's interests." Kalda, 481 F.3d at 644 (citing Shea, 107 F.3d at 628).
discussed Cited as authority (rule) Braden v. Wal-Mart Stores, Inc. (2×) also: Cited "see"
8th Cir. · 2009 · confidence medium
Morever, in some circumstances fiduciaries must on their own initiative “disclose any material information that could adversely affect a participant’s interests.” Kalda, 481 F.3d at 644 (citing Shea, 107 F.3d at 628).
discussed Cited as authority (rule) Brubaker v. Deere & Co. (2×)
S.D. Iowa · 2009 · confidence medium
Additionally, a fiduciary has a duty to inform when it knows that silence may be harmful, Shea, 107 F.3d at 629 (quotations and citations omitted), and cannot remain silent if it knows or should know that the beneficiary is laboring under a material misunderstanding of plan benefits, Griggs v. E.
discussed Cited as authority (rule) Morrison v. Moneygram International, Inc.
D. Minnesota · 2009 · confidence medium
In Shea, the Eighth Circuit noted that, although the Supreme Court’s decision in Varity declined to reach the issue of whether ERISA fiduciaries ever have an affirmative duty to disclose, see Varity, 516 U.S. at 506 , 116 S.Ct. 1065 , the Eighth Circuit’s underlying decision in Varity “made clear that the duty of loyalty requires an ERISA fiduciary to communicate any material facts which could adversely affect a plan member’s interests.” Shea, 107 F.3d at 628.
discussed Cited as authority (rule) Kalda v. Sioux Valley Physician Partners, Inc. (2×)
8th Cir. · 2007 · confidence medium
Additionally, a fiduciary has a duty to inform when it knows that silence may be harmful, Shea, 107 F.3d at 629 (quotations and citations omitted), and cannot remain silent if it knows or should know that the beneficiary is laboring under a material misunderstanding of plan benefits, Griggs v. E.I.
discussed Cited as authority (rule) Kalda v. Sioux Valley Physician Partners, Inc. (2×)
8th Cir. · 2007 · confidence medium
An ERISA fiduciary must “discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries,” 29 U.S.C. § 1104 (a)(1), and must comply with the common-law duty of loyalty, including the “obligation to deal fairly and honestly with all plan members,” Shea v. Esensten, 107 F.3d 625, 628 (8th Cir.1997) (citing Varity Corp. v. Howe, 516 U.S. 489, 506 , 116 S.Ct. 1065 , 134 L.Ed.2d 130 (1996)), cert. denied, 522 U.S. 914 , 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997).
cited Cited as authority (rule) Duane L. Christensen v. Qwest Pension Plan
8th Cir. · 2006 · confidence medium
That is no doubt an accurate application of the duty of loyalty as defined in Varity, 516 U.S. at 506 (“lying is inconsistent with the duty of loyalty”), and in Shea, 107 F.3d at 628-29.
discussed Cited as authority (rule) Duane L. Christensen, Plaintiffappellant v. The Qwest Pension Plan
8th Cir. · 2006 · confidence medium
That is no doubt an accurate application of the duty of loyalty as defined in Varity, 516 U.S. at 506 , 116 S.Ct. 1065 (“lying is inconsistent with the duty of loyalty”), and in Shea, 107 F.3d at 628-29.
discussed Cited as authority (rule) Moore v. Yellow Book USA, Inc.
N.D. Miss. · 2004 · confidence medium
DuPont de Nemours & Co., 237 F.3d 371, 378 (4th Cir.2001) (ERISA preempts negligent misrepresentation claim where employer misrepresented the extent or existence of benefits under a benefit plan); Perry v. P*I*E Nationwide Inc., 872 F.2d 157 (6th Cir.1989) (fraud claim not preempted where employees were induced and coerced into participating in a stock investment plan and in exchange for participating the employees had to irrevocably surrender 15% of their wages); Shea v. Esensten, 107 F.3d 625, 627-28 (8th Cir.1997) (fraudulent misrepresentation claim preempted based on lack of information an…
discussed Cited as authority (rule) Borneman v. Principal Life Insurance (2×) also: Cited "see, e.g."
S.D. Iowa · 2003 · confidence medium
It is settled law in the Eighth Circuit that “the duty of loyalty requires an ERISA fiduciary to communicate any material facts which could adversely affect a plan member’s interests.” See Shea v. Esensten, 107 F.3d 625, 628 (8th Cir.1997) (citing Howe v. Varity Corp., 36 F.3d 746, 754 (8th Cir.1994)).
discussed Cited as authority (rule) In Re Enron Corp. Securities, Derivative & ERISA (2×)
S.D. Tex. · 2003 · confidence medium
Dupont de Nemours & Co., 237 F.3d 371, 380-81 (4th Cir.2001); Bowerman v. Wal-Mart-Stores, Inc., 226 F.3d 574, 590 (7th Cir.2000); Krohn v. Huron Memorial Hosp., 173 F.3d 542, 547-48 (6th Cir.1999)(“[A] plan administrator has ‘an affirmative duty to inform when it knows that silence might be harmful’...,” including full information about short- and long-term disability benefits when asked about disability benefits generally); Shea v. Esensten, 107 F.3d 625, 629 (8th Cir.)(“Where an HMO’s financial incentives discourage a treating doctor from providing essential health care referral…
discussed Cited as authority (rule) Bonnie L. Geissal v. Moore Medical Corp.
8th Cir. · 2003 · confidence medium
In Shea v. Esensten, 107 F.3d 625, 628 (8th Cir.), cert. denied, 522 U.S. 914 , 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997), we held that the representative of a deceased participant’s estate had standing to sue for breach of ERISA fiduciary duties.
discussed Cited as authority (rule) Horvath v. Keystone Health Plan East, Inc.
3rd Cir. · 2003 · confidence medium
Citing our requirement that a fiduciary must speak if it "knows that silence might be harmful," Bixler, 12 F.3d at 1300, the court held that a duty to disclose the existence of the physician incentives was triggered under the circumstances of that case. 107 F.3d at 629.
cited Cited as authority (rule) Linda M. Eide v. Grey Fox Technical Services Corporation
8th Cir. · 2003 · confidence medium
ERISA "supersede[s] any and all State laws [that] relate to any employee benefit plan . . . ." 29 U.S.C. § 1144 (a); Shea, 107 F.3d at 627.
cited Cited as authority (rule) Eide v. Grey Fox Technical Services Corp.
8th Cir. · 2003 · confidence medium
Shea v. Esensten, 107 F.3d 625, 627 (8th Cir.1997).
discussed Cited as authority (rule) Ackerman v. Fortis Benefits Insurance
S.D. Ohio · 2003 · confidence medium
See, e.g., Erbaugh v. Anthem Blue Cross and Blue Shield, 126 F.Supp.2d 1079, 1082 (S.D.Ohio 2000); Whitt v. Sherman Int’l Corp., 147 F.3d 1325, 1328 (11th Cir.1998); Shea v. Esensten, 107 F.3d 625, 627 (8th Cir.), cert. denied, 522 U.S. 914 , 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997); Degnan v. Publicker Indus., Inc., 83 F.3d 27, 30 (1st Cir.1996).
discussed Cited as authority (rule) Joseph D. Griggs v. E. I. Dupont De Nemours & Company, Joseph D. Griggs v. E. I. Dupont De Nemours & Company
4th Cir. · 2001 · confidence medium
See Jordan, 116 F.3d at 1015 (explaining that fiduciary has an affirmative duty to inform a beneficiary of material facts known by the fiduciary but not the beneficiary and that the irrevocability of a retirement benefits election may be a material omission); Shea, 107 F.3d at 628-29 (holding that fiduciary breached its duty under ERISA by failing to disclose to the beneficiary financial incentives discouraging preferred doctors from making referrals to specialists — information that was necessary for beneficiary to make an informed decision); Bixler, 12 F.3d at 1302-03 (reversing grant of s…
discussed Cited as authority (rule) Griggs v. E I DuPont (2×)
4th Cir. · 2001 · confidence medium
See, e.g., Hall v. Blue Cross/Blue Shield of Alabama, 134 F.3d 1063, 1064-66 (11th Cir. 1998) (ERISA preempted claim that fraudulent misrepresentations regarding the scope of coverage induced plaintiff to enroll in her employer-provided health benefits plan); Shea v. Esensten, 107 F.3d 625, 627-28 (8th Cir. 1997) (pre- emption applied to a state law claim for "fraudulent nondisclosure and misrepresentation about [the plan’s] doctor incentive programs" that "limited [the participant’s] ability to make an informed choice about his life-saving health care"); Smith, 959 F.2d at 8-10 (ERISA sup…
discussed Cited as authority (rule) Neade v. Portes (2×)
Ill. · 2000 · confidence medium
Shea, 107 F.3d at 629.
cited Cited as authority (rule) Neade v. Portes
Ill. · 2000 · confidence medium
Shea , 107 F.3d at 629.
discussed Cited as authority (rule) Erbaugh v. Anthem Blue Cross and Blue Shield
S.D. Ohio · 2000 · confidence medium
Co., 162 F.3d 410, 411 (6th Cir.1998) (following removal of state-court action on the basis of complete preemption of state common law claims, plaintiff filed amended complaint, asserting seve'ral causes of action directly under ERISA); Whitt v. Sherman International Corp., 147 F.3d 1325, 1328 (11th Cir.1998) (following removal on the basis of complete preemption and dismissal of state-law claims, district court allowed plaintiff to file an amended complaint, setting forth a claim under ERISA); Shea v. Esensten, 107 F.3d 625, 627 (8th Cir.1997) (after removal of her state-court wrongful death …
cited Cited as authority (rule) Thrailkill v. Amsted Industries Inc.
W.D. Mo. · 2000 · confidence medium
Shea, 107 F.3d at 627.
discussed Cited as authority (rule) B-T Dissolution, Inc. v. Provident Life & Accident Insurance
S.D. Ohio · 2000 · confidence medium
Co., 162 F.3d 410, 411 (6th Cir.1998) (following removal of state-court action on the basis of complete preemption of state common law claims, plaintiff filed amended complaint, asserting several causes of action directly under ERISA); Whitt v. Sherman International Corp., 147 F.3d 1325, 1328 (11th Cir.1998) (following removal on the basis of complete preemption and dismissal of state-law claims, district court allowed plaintiff to file an amended complaint, setting forth a claim under ERISA); Shea v. Esensten, 107 F.3d 625, 627 (8th Cir.1997) (after removal of her state-court wrongful death a…
discussed Cited as authority (rule) Ehlmann v. Kaiser Foundation Health Plan
5th Cir. · 2000 · confidence medium
Co., 60 F.3d 234 (holding that the fiduciary duties of Section 404 required disclosure of a rate schedule change resulting in prohibitive premiums given the extreme impact that change could have on small employers such as the plaintiff); Shea v. Esensten, 107 F.3d 625, 628 (8th Cir.1997), cert. denied, 522 U.S. 914 , 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997) (holding that Section 404 required disclosure of a physician compensation arrangement where the plan participant asked his doctor whether he should see a heart specialist regarding his heart condition, was told not to, and subsequently died o…
cited Cited as authority (rule) Prudential Ins. Co. of America v. Doe
E.D. Mo. · 1999 · confidence medium
See, e.g., Kuhl, 999 F.2d at 304 ; Shea, 107 F.3d at 627.
examined Cited as authority (rule) Neade v. Portes (12×)
Ill. App. Ct. · 1999 · confidence medium
Shea, 107 F.3d at 626.
examined Cited as authority (rule) Neade v. Portes (12×)
Ill. App. Ct. · 1999 · confidence medium
Shea , 107 F.3d at 626.
discussed Cited as authority (rule) Brown v. American Life Holdings, Inc.
S.D. Iowa · 1998 · confidence medium
The Eighth Circuit has discussed the extent of disclosure required under ERISA's fiduciary provision § 1104, stating, “the duty of loyalty requires an ERISA fiduciary to communicate any material facts which could adversely affect a plan member’s interests." Shea v. Esensten, 107 F.3d 625, 628 (8th Cir.1997) (citing Howe v. Varity Corp., 36 F.3d 746, 754 (8th Cir.1994), aff'd, 516 U.S. 489 , 116 S.Ct. 1065 , 134 L.Ed.2d 130 (1996)), cert. denied, - U.S. -, 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997).
cited Cited "see" Ivan Mitchell v. Blue Cross Blue Shield of ND
8th Cir. · 2020 · signal: see · confidence high
See Shea v. Esensten, 107 F.3d 625 , 628–29 (8th Cir. 1997).
discussed Cited "see" Horn v. Cendant Operations, Inc.
10th Cir. · 2003 · signal: see · confidence high
See generally Shea v. Esensten, 107 F.3d 625, 628 (8th Cir.1997) (holding that “if the fiduciary’s alleged ERISA violation caused the former employee to lose plan participant status, the former employee will nonetheless have standing to challenge the fiduciary violation”); Swinney v. Gen.
discussed Cited "see" Alves v. Harvard Pilgrim Health Care, Inc.
D. Mass. · 2002 · signal: see · confidence high
See Shea v. Esensten, 107 F.3d 625 , 629 (8th Cir.1997) (holding that defendant HMO had a duty to disclose physician’s financial incentives to minimize the use of physician referrals and other specialty services when a plan participant asked his doctor whether he should see a heart specialist, was told not to, and then died). ' Courts must apply common law trust standards in determining the scope of an ERISA’s fiduciary obligations, bearing in mind the special nature and purpose of ERISA benefit plans.
discussed Cited "see" Jones v. U.S. Healthcare (2×)
N.Y. App. Div. · 2001 · signal: see · confidence high
Furthermore, State law claims arising out of “any administrative determination relating to the plan or the extent of its benefits” are barred by the preemption provisions of the Employee Retirement Income Security Act of 1974 ( 29 USC § 1001 et seq. [ERISA]; see, Tufino v New York Hotel & Motel Trades Council & Hotel Assns., 223 AD2d 245, 250 ; see, Shea v Esensten, 107 F3d 625, 627 [8th Cir], cert denied 522 US 914), which recite that it shall “supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan” ( 29 USC § 1144 [a]).
cited Cited "see" Blaylock v. Hynes
D. Minnesota · 2000 · signal: see · confidence high
See id. at 627 .
cited Cited "see" Dianne L. Shea v. Sidney Esensten
8th Cir. · 2000 · signal: see · confidence high
See Shea v. Esensten, 107 F.3d 625 (8th Cir.) (Shea I), cert. denied, 522 U.S. 914 (1997).
cited Cited "see" Dianne L. Shea v. Sidney Esensten
8th Cir. · 2000 · signal: see · confidence high
See Shea v. Esensten, 107 F.3d 625 (8th Cir.) (Shea I), cert. denied, 522 U.S. 914, 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997).
discussed Cited "see" Seales v. Amoco Corp.
M.D. Ala. · 2000 · signal: see · confidence high
See Shea v. Esensten, 107 F.3d 625, 627 (8th Cir.1997) (“the language of ERISA’s preemption clause sweeps broadly, embracing common law causes of action if they have a connection with or reference to an ERISA plan.”).
discussed Cited "see" Sanders v. International Society for Performance Improvement
D.C. · 1999 · signal: see · confidence high
See Shea v. Esensten, 107 F.3d 625 , 628 (8th Cir.), cert. denied, 522 U.S. 914 , 118 S.Ct. 297 , 139 L.Ed.2d 229 (1997) (estate representative has standing to assert deceased’s breach of fiduciary duty claim under ERISA); cf. Yarde v. Pan American Life Ins.
examined Cited "see" Cynthia Herdrich v. Lori Pegram, M.D., Carle Clinic Association, and Health Alliance Medical Plans, Incorporated (6×)
7th Cir. · 1998 · signal: see · confidence high
See id. at 628-29.
discussed Cited "see, e.g." Francesca Allen v. Wells Fargo & Company
8th Cir. · 2020 · signal: see, e.g. · confidence medium
See, e.g., Shea v. Esensten, 107 F.3d 625, 628-29 (8th Cir. 1997) (holding fiduciary had a duty to disclose health maintenance organization’s financial incentive scheme that discouraged treating doctors from providing essential health care referrals for conditions covered under the plan benefit structure); Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 598 (8th Cir. 2009) (holding fiduciary had duty to disclose “complete and accurate material information about the Plan funds and the process by which they were selected”).
discussed Cited "see, e.g." BH Services Inc. v. FCE Benefit Administrators Inc.
D.S.D. · 2017 · signal: see also · confidence low
See Johnston, 241 F.3d at 630 (concluding that because the plaintiff’s state-law claims “arose from the administration of an ERISA plan,” preemption was warranted because state law had “an impact on plan administration.”); see also Shea v. Esensten, 107 F.3d 625 , 627 (8th Cir. 1997) (finding that preemption was warranted where the outcome of plaintiff’s lawsuit would affect future administration of ERISA plans). 4.
Retrieving the full opinion text from the archive…
Dianne L. Shea, Individually and as Trustee for the Heirs of Patrick Joseph Shea, Decedent Individually and Derivatively on Behalf of Participants in the Seagate Group Health Plan
v.
Sidney Esensten Jeffrey A. Arenson Family Medical Clinic, Now Known as Fairview Clinics, a Minnesota Non-Profit Corporation Medica, a Minnesota Non-Profit Corporation
95-4029.
Court of Appeals for the Eighth Circuit.
Feb 26, 1997.
107 F.3d 625
Cited by 31 opinions  |  Published

107 F.3d 625

65 USLW 2593, 20 Employee Benefits Cas. 2561

Dianne L. SHEA, individually and as trustee for the heirs of
Patrick Joseph Shea, decedent; individually and
derivatively on behalf of participants
in the Seagate Group Health
Plan, Appellant,
v.
Sidney ESENSTEN; Jeffrey A. Arenson; Family Medical
Clinic, now known as Fairview Clinics, a Minnesota
non-profit corporation; Medica, a
Minnesota non-profit
corporation, Appellees.

No. 95-4029MN.

United States Court of Appeals,
Eighth Circuit.

Submitted Nov. 21, 1996.
Decided Feb. 26, 1997.

Corey John Ayling, Minneapolis, MN, argued (John R. Schulz, on the brief), for appellant.

Aaron Mark Rodriguez, Minneapolis, MN, argued (Julie Fleming-Wolfe, on the brief), for appellees.

Before FAGG, WOLLMAN, and HANSEN, Circuit Judges.

FAGG, Circuit Judge.

[*~625]1

After being hospitalized for severe chest pains during an overseas business trip, Patrick Shea made several visits to his long-time family doctor. During these visits, Mr. Shea discussed his extensive family history of heart disease, and indicated he was suffering from chest pains, shortness of breath, muscle tingling, and dizziness. Despite all the warning signs, Mr. Shea's doctor said a referral to a cardiologist was unnecessary. When Mr. Shea's symptoms did not improve, he offered to pay for the cardiologist himself. At that point, Mr. Shea's doctor persuaded Mr. Shea, who was then forty years old, that he was too young and did not have enough symptoms to justify a visit to a cardiologist. A few months later, Mr. Shea died of heart failure.

2

Mr. Shea had been an employee of Seagate Technologies, Inc. (Seagate) for many years. Seagate provided health care benefits to its employees by contracting with a health maintenance organization (HMO) known as Medica. As part of its managed care product, Medica required Seagate's employees to select one of Medica's authorized primary care doctors. Mr. Shea chose his family doctor, who was on Medica's list of preferred doctors. Under the terms of Medica's policy, Mr. Shea was insured for all of his medically necessary care, including cardiac care. Before Mr. Shea could see a specialist, however, Medica required Mr. Shea to get a written referral from his primary care doctor. Unknown to Mr. Shea, Medica's contracts with its preferred doctors created financial incentives that were designed to minimize referrals. Specifically, the primary care doctors were rewarded for not making covered referrals to specialists, and were docked a portion of their fees if they made too many. According to Mr. Shea's widow Dianne, if her husband would have known his doctor could earn a bonus for treating less, he would have disregarded his doctor's advice, sought a cardiologist's opinion at his own expense, and would still be alive today.

3

Initially, Mrs. Shea brought a wrongful death action in Minnesota state court. Mrs. Shea alleged Medica's fraudulent nondisclosure and misrepresentation about its doctor incentive programs limited Mr. Shea's ability to make an informed choice about his life-saving health care. Medica removed the case to federal court, contending Mrs. Shea's tort claims were preempted by the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1144 (1994). Mrs. Shea filed a motion to remand, but the district court denied the motion. Mrs. Shea then amended her complaint to assert Medica's behind-the-scenes efforts to reduce covered referrals violated Medica's fiduciary duties under ERISA. See id. §§ 1002(21), 1104(a)(1). Believing ERISA does not require an HMO to disclose its doctor compensation arrangements because they are not "material facts affecting a beneficiary's interests," the district court dismissed Mrs. Shea's amended complaint for failing to state a claim. See Fed.R.Civ.P. 12(b)(6). Mrs. Shea appeals. Having construed the pleaded facts in the light most favorable to Mrs. Shea, we reverse the judgment of the district court. See Alexander v. Peffer, 993 F.2d 1348, 1349 (8th Cir.1993).

[*~626]4

Because our removal jurisdiction is intertwined with the district court's preemption ruling, we must first consider whether ERISA displaces Mrs. Shea's tort claims against Medica. See Schroeder v. Phillips Petroleum Co., 970 F.2d 419, 420 (8th Cir.1992) (per curiam). ERISA supersedes state laws insofar as they "relate to any employee benefit plan." 29 U.S.C. § 1144(a). To this end, the language of ERISA's preemption clause sweeps broadly, embracing common law causes of action if they have a connection with or a reference to an ERISA plan. See Pilot Life Ins. Co. v. Dedeaux, 481 U.S. 41, 47-48, 107 S.Ct. 1549, 1552-53, 95 L.Ed.2d 39 (1987). Here, Medica administered Seagate's employee benefit plan, and Mrs. Shea maintains Medica wrongfully failed to disclose a major limitation on her husband's health care benefits. Along these lines, we have held that claims of misconduct against the administrator of an employer's health plan fall comfortably within ERISA's broad preemption provision. See Kuhl v. Lincoln Nat'l Health Plan of Kansas City, Inc., 999 F.2d 298, 301-04 (8th Cir.1993); see also Howe v. Varity Corp., 36 F.3d 746, 752-53 (8th Cir.1994) (ERISA preempts state fraudulent misrepresentation claims), aff'd, --- U.S. ----, 116 S.Ct. 1065, 134 L.Ed.2d 130 (1996).

5

After considering the factors that guide our inquiry, see Arkansas Blue Cross & Blue Shield v. St. Mary's Hosp., Inc., 947 F.2d 1341, 1344-45 (8th Cir.1991), we conclude the district court correctly decided that ERISA preempts Mrs. Shea's state-law claims. The outcome of Mrs. Shea's lawsuit would clearly affect how Seagate's ERISA-regulated benefit plan is administered, and if similar cases are brought in state courts across the country, ERISA plan administrators will inevitably be forced to tailor their plan disclosures to meet each state's unique requirements. This result would be at odds with Congress's intent to ensure "the nationally uniform administration of employee benefit plans." New York State Conference of Blue Cross & Blue Shield Plans v. Travelers Ins. Co., 514 U.S. 645, ---- - ----, 115 S.Ct. 1671, 1677-78, 131 L.Ed.2d 695 (1995). Thus, we agree with the district court that Mrs. Shea's case was removable to federal court. See Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 63-64, 66-67, 107 S.Ct. 1542, 1546-47, 1547-48, 95 L.Ed.2d 55 (1987) (ERISA preemption supports removal); Anderson v. Humana, Inc., 24 F.3d 889, 891 (7th Cir.1994) (plan participant's attacks on HMO's incentive structure were both preempted and removable); Rodriguez v. Pacificare of Texas, Inc., 980 F.2d 1014, 1016-17 (5th Cir.1993) (state-law claims based on HMO's refusal to provide referral letter were properly preempted and removed).

6

Having decided Mrs. Shea's case belongs in federal court, we turn to Medica's contention that Mrs. Shea lacks standing to pursue an ERISA remedy. ERISA authorizes current plan participants to assert a claim for breach of fiduciary duty. See Adamson v. Armco, Inc., 44 F.3d 650, 654 (8th Cir.), cert. denied, --- U.S. ----, 116 S.Ct. 85, 133 L.Ed.2d 42 (1995). According to Medica, Mr. Shea was no longer a Seagate plan participant after he died. See 29 U.S.C. § 1002(7). Contrary to Medica's view, we have held that if the fiduciary's alleged ERISA violation caused the former employee to lose plan participant status, the former employee will nonetheless have standing to challenge the fiduciary violation. See Adamson, 44 F.3d at 654-55; see also Swinney v. General Motors Corp., 46 F.3d 512, 518-19 (6th Cir.1995); Vartanian v. Monsanto Co., 14 F.3d 697, 702 (1st Cir.1994). Mrs. Shea contends that, but for Medica's failure to disclose Mr. Shea's doctor's financial stake in discouraging covered referrals to specialists, her husband would still be alive and a current plan participant. Stated another way, Mr. Shea did not voluntarily relinquish his rights in the Seagate plan. See Adamson, 44 F.3d at 655. We are persuaded that Mrs. Shea, as the representative of Mr. Shea's estate, has standing to assert her husband's ERISA claims. Any other result would reward Medica for giving its preferred doctors an incentive to make more money by delivering cheaper care to the detriment of patients like Mr. Shea, and "ERISA should not be construed to permit the fiduciary to circumvent [its] ERISA-imposed fiduciary duty in this manner." Swinney, 46 F.3d at 518-19; see also Varity Corp. v. Howe, --- U.S. ----, ----, 116 S.Ct. 1065, 1068, 134 L.Ed.2d 130 (1996) (former plan participants tricked by a breach of a fiduciary duty have standing to sue).

[*~627]7

With the jurisdictional challenges out of the way, we next consider whether Medica had a duty to disclose its referral-discouraging approach to health care. ERISA requires plan fiduciaries to "discharge [their] duties with respect to a plan solely in the interest of the participants and beneficiaries." 29 U.S.C. § 1104(a)(1). In addition to ERISA's express disclosure requirements, see 29 U.S.C. §§ 1021-1031, " 'Congress invoked the common law of trusts to define the general scope of [a fiduciary's] ... responsibility.' " Varity Corp., --- U.S. at ----, 116 S.Ct. at 1070 (quoting H.R.Rep. No. 93-533, at 3-5, 11-13 (1973)). In affirming our decision in Varity Corp., the Supreme Court concluded that ERISA fiduciaries must comply with the common law duty of loyalty, which includes the obligation to deal fairly and honestly with all plan members. See id. at ---- - ----, 116 S.Ct. at 1074-75. Although the Supreme Court found it unnecessary to reach the issue, our earlier opinion made clear that the duty of loyalty requires an ERISA fiduciary to communicate any material facts which could adversely affect a plan member's interests. See Varity Corp., 36 F.3d at 754. "The duty to disclose material information is the core of a fiduciary's responsibility, animating the common law of trusts long before the enactment of ERISA." Eddy v. Colonial Life Ins. Co. of Am., 919 F.2d 747, 750 (D.C.Cir.1990).

8

Although the district court acknowledged Medica's duty of loyalty, the court felt the compensation arrangements between Medica and its doctors were not material facts requiring disclosure. We disagree. From the patient's point of view, a financial incentive scheme put in place to influence a treating doctor's referral practices when the patient needs specialized care is certainly a material piece of information. This kind of patient necessarily relies on the doctor's advice about treatment options, and the patient must know whether the advice is influenced by selfserving financial considerations created by the health insurance provider. The district court believed Seagate's employees already realized their doctors' pocketbooks would be adversely affected by making referrals to outside specialists. Even if the district court is right, Seagate's employees still would not have known their doctors were penalized for making too many referrals and could earn a bonus by skimping on specialized care. Thus, we conclude Mr. Shea had the right to know Medica was offering financial incentives that could have colored his doctor's medical judgment about the urgency for a cardiac referral. Health care decisions involve matters of life and death, and an ERISA fiduciary has a duty to speak out if it "knows that silence might be harmful." Bixler v. Central Penn. Teamsters Health & Welfare Fund, 12 F.3d 1292, 1300 (3d Cir.1993); see Restatement (Second) Of Trusts § 173 cmt. d (1959). Indeed, in this case the danger to the plan participant's well being was created by the fiduciary itself. If Mr. Shea had been aware of his doctor's financial stakes, he could have made a fully informed decision about whether to trust his doctor's recommendation that a cardiologist's examination was unnecessary.

[*~628]9

In sum, we believe Mrs. Shea has stated a claim against Medica for breaching the fiduciary obligation to disclose all the material facts affecting her husband's health care interests. When an HMO's financial incentives discourage a treating doctor from providing essential health care referrals for conditions covered under the plan benefit structure, the incentives must be disclosed and the failure to do so is a breach of ERISA's fiduciary duties. We thus reverse the district court's order dismissing Mrs. Shea's amended complaint for failure to state a claim on which relief can be granted and remand the case to the district court for further proceedings. We decline Medica's invitation to consider several remedy-related issues that were not addressed in the district court's ruling.