In reversing the lower court's decision, the Ninth Circuit reversed its position on the enforceability of arbitration agreements in ERISA claims, which was based on a 1984 circuit ruling in Amaro v. Continental Can Co.
The Ninth Circuit Court of Appeals has reversed a lower court ruling that denied Charles Schwab Corp.'s motion to compel arbitration in a class-action lawsuit against fiduciaries to the company's 401(k) plan.
In January of 2018, a ruling in the U.S. District Court for the Northern District of California said the arbitration provisions in Schwab's plan documents did not bind the plaintiff, a former broker with the firm, to arbitration.
One of the arbitration provisions was written into plan documents after the plaintiff left Schwab, but before he brought the lawsuit.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
