Justices Won’t Hear Suit Over Arbitration Clauses in ERISA Plans

The US Supreme Court declined Monday to hear a case by Argent Trust Co. asking for resolution of a circuit split over whether an individual arbitration clause in a benefit plan document can be enforced to cut off class litigation.

Argent asked the justices to review a Tenth Circuit opinion holding that the arbitration clause in Envision Management Holding Inc.'s employee stock ownership plan wasn’t enforceable because it prevented plan participants from “effectively vindicating” certain statutory rights under the Employee Retirement Income Security Act.

According to Argent and Envision’s board of directors, which joined the petition, the Tenth Circuit “sidestepped” ...