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ARTICLE · 15 MAY 2024

In Split Ruling Second Circuit Declines To Compel Arbitration Of ERISA Plan Claims

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They say that April showers bring May flowers, but there were no flowers for ERISA plan sponsors and fiduciaries on May 1 when the Second Circuit held, in a ruling that provoked a vigorous dissenting...

United StatesEmployment and HR
Russell Hirschhorn
Russell Hirschhorn
Daniel Wesson
Daniel Wesson
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They say that April showers bring May flowers, but there were no flowers for ERISA plan sponsors and fiduciaries on May 1 when the Second Circuit held, in a ruling that provoked a vigorous dissenting opinion, that an ERISA plan's arbitration provision was not enforceable because it required the plan participant to forgo his statutory right to seek plan-wide relief. Cedeno v. Sasson, 2024 WL 1895053 (2d Cir. May 1, 2024). With this decision, the Second Circuit joins the Third, Seventh, and Tenth Circuits in holding unenforceable plan arbitration provisions on the ground that they prevent a plaintiff from vindicating statutory rights guaranteed by ERISA sections 502(a)(2) and 409.

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