§ 4.3.6.5.10 TORT THEORIES

• Jurisdiction: Arizona

§ 4.3.6.5.10 Tort Theories. ERISA preemption of state tort theories has paralleled the development of preemption as applied to contract claims. The tort claim preemption issues have been vigorously pursued because the stakes are higher. State tort claims typically seek punitive damages and emotional distress awarded after a jury trial. ERISA remedies, however, are generally limited to an award of benefits, attorneys' fees, and costs awarded by the court rather than a jury.

It is generally recognized that there is no viable state tort claim for faulty or negligent processing of employee benefit claims.¹⁴⁵ The courts have been more troubled by fraud claims but have nonetheless found most such claims to be preempted.¹⁴⁶ One case recognizes the possibility of a fraud claim against an employer where the alleged fraud pertained to employee benefits which would...