Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Arbitration

Eighth Circuit

Sutton v. DST Systems Inc, No. 4:21-09052, 2021 WL 4896545 (W.D. Mo. Oct. 20, 2021) (Judge Nanette K. Laughrey). For the third week in a row, DST Systems, Inc. is ordered to pay the arbitration awards against it. Briefly stated, DST failed to monitor and ensure the rebalancing of overly concentrated investments in its defined contribution retirement plan. This mismanagement resulted in lawsuits from plan participants in Missouri in which DST argued successfully in favor of compulsory arbitrations. Hundreds of plan participants subsequently brought arbitration proceedings against DST. Continue Reading Your ERISA Watch – Week of October 27, 2021

Reetz v. Lowe’s Companies, Inc., No. 5:18-CV-00075-KDB-DCK, 2021 WL 4771535 (W.D.N.C. Oct. 12, 2021) (Judge Kenneth D. Bell). 

This week’s notable decision is a surprising loss for participants in Lowe’s 401(k) pension plan against the plan’s investment manager, Aon Hewitt Investment Consulting, following class certification, success on summary judgment, and a multi-million-dollar, court-approved settlement with Lowe’s inside fiduciaries.   

Plaintiff Benjamin Reetz, a former Lowe’s employee and 401(k) plan participant, brought suit against Lowe’s, the administrative committee of the plan, and Aon, claiming numerous breaches of fiduciary duty with respect to Aon’s design and implementation of a new investment strategy and line-up for the plan. Following class certification, plaintiff’s claims against Lowe’s and the administrative committee were resolved through a class action settlement totaling $12.5 million. But the claims against Aon proceeded to a bench trial. Continue Reading Lowe’s 401(k) Participants Lose at Trial After Winning Every Battle

Hursh v. DST Systems, Inc., No. 4:21-mc-09017, 2021 WL 4526849 (W.D. Mo. Oct. 4, 2021) (Judge Nanette K. Laughrey).

It is no secret that employers like arbitration provisions, and ERISA case law generally allows them to include such provisions in their employee benefit plans. However, this case is an object lesson in being careful what you ask for – because you just might get it.

Continue Reading Be Careful What You Wish For: Employer Can’t Escape Hundreds of Arbitration Awards