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ARTICLE · 28 SEPTEMBER 2018

Benefits Counselor - September 2018

In Brown et al. v. Wilmington Trust NA et al., the District Court of Southern Ohio ruled that a former plan participant was not bound by a mandatory arbitration clause in an employee stock ownership

United StatesEmployment and HR

General Employee Benefits

District Court of Southern Ohio Rules Arbitration Clause Does Not Apply to Former Participant

In Brown et al. v. Wilmington Trust NA et al., the District Court of Southern Ohio ruled that a former plan participant was not bound by a mandatory arbitration clause in an employee stock ownership plan.  The Court found that, because the plan provision was added after the participant retired, the participant was not required to arbitrate her claim.  The Court further asserted that even if the participant had agreed to be bound by the arbitration provision, such a provision would only be applicable to active participants.

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