Tenneco Denied Arbitration in Sixth Circuit 401(k) Fee Challenge

Tenneco Inc. workers challenging their retirement plan fees on Tuesday convinced the Sixth Circuit to reject the company’s request for arbitration and keep the case in court.

The Tenneco plan’s arbitration clause requires that claims be brought in an individual capacity and not a representative capacity, and it limits the monetary relief a claimant can obtain to amounts related to their “individual Plan account,” the US Court of Appeals for the Sixth Circuit said. The provision is therefore unenforceable because it forces plan participants to prospectively waive rights guaranteed to them by the Employee Retirement Income Security Act, including ...