Courts Continue To Split Over Enforceability Of Benefit Plan Arbitration Provisions

Highlights

• As discussed in a previous Holland & Knight alert, courts take various approaches when considering the enforceability of mandatory class-action waivers and arbitration provisions contained in Employee Retirement Income Security Act of 1974 (ERISA) plans.
• Recent decisions show that courts remain split on key issues, including the interpretation of the U.S. Supreme Court's decision in LaRue v. DeWolff, Boberg & Assoc., who must/can consent to a plan amendment, and the applicability and application of the "effective vindication" doctrine.
• Recent court decisions in the Seventh Circuit, as well as Delaware, New York, and Florida district courts have reached different results, and for different reasons.