District Court Denies Motion to Compel Arbitration Over Breach of Fiduciary Duties Claims

Despite the strong federal policy in favor of arbitration, the U.S. District Court for the Southern District of Ohio recently denied a motion to compel arbitration concerning an alleged injury to a defined contribution retirement plan and its participants. In this case, two plaintiffs brought an action pursuant to § 409 and § 502(a)(2) of the Employee Retirement Income Security Act of 1974 (“ERISA”) individually and on behalf of other similarly situated plan participants against Cintas Corporation for breaching its fiduciary duties of loyalty and prudence by mismanaging and failing to investigate and select better cost options for the plan. In response to this lawsuit, Cintas filed a motion to compel arbitration based on the employment agreements signed by the two plaintiffs.

Read the complete story here.

Featured Arbitrators

ad
View all

Read these next

Category

SCOTUS Hears Oral Argument in Suski

This article was first published on the Securities Arbitration Alert blog. The Supreme Court heard oral argument February 28 in Coinbase v. Suski, No. 23-3, the second case involving arbitration heard this...

By George Friedman
Category

Reminder: SCOTUS Hears Two of “Arbitration Final Four” Oral Arguments Next Week

Just a reminder that SCOTUS will be hearing oral arguments next week on two cases involving arbitration. We reported in December that the Supreme Court had granted Certiorari in four cases involving...

By George Friedman
Category

Arbitration Conversation No. 84: Hiro Aragaki, Professor of Law and Director of the Center for Negotiation and Dispute Resolution, UC Hastings Law.

In this episode of the Arbitration Conversation, Amy interviews Prof. Hiro Aragaki, Professor of Law and Director of the Center for Negotiation and Dispute Resolution, UC Hastings Law. Prof. Hiro...

By Hiro Aragaki, Amy Schmitz

Find an Arbitrator