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Aramark Services, Inc. v. Aetna Life Insurance Co.

Court: ED Tx  04/26/2024  Motion to Stay Pending Arbitration Denied in Dispute Between ERISA Plan Sponsor and Plan Administrator

A court of the Eastern District of Texas held that a plan sponsor's claims against a plan administrator for breach of fiduciary duty are not subject to mandatory arbitration under the Federal Arbitration Act, finding that because the administrator is a fiduciary under ERISA, the sponsor's claims for monetary damages against the administrator are equitable in nature and therefore not subject to mandatory arbitration, particularly given that the plan administrator has taken the position in other courts that such claims are equitable when seeking to avoid arbitration.

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