News & Analysis as of

Fiduciary Duty Breach of Duty Employment Litigation

Littler

Littler Lightbulb – May Employment Appellate Roundup

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Fourth Circuit Dismisses White Employee’s Race, Gender, and Retaliation Claims - Barnhill v. Pamela Bondi, __ F.4th __ (4th Cir. May 15, 2025) involved claims by a white Department of Justice Drug Enforcement Administration...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Clorox forfeiture case goes forward

The U.S. District Court for the Northern District of California has decided not to dismiss a class action lawsuit against The Clorox Company and the employee benefits committee of The Clorox Company 401(k) Plan. The lawsuit...more

Pullman & Comley - Labor, Employment and...

Retirement Plan Update – Forfeitures are New Focus of Fiduciary Breach Litigation

Many employer-sponsored defined contributions plans, including 401(k) profit sharing plans and money purchase pension plans include a vesting schedule – a period over which a plan participant earns a nonforfeitable right to...more

Holland & Knight LLP

Arkansas Court Declines to Dismiss Challenge to ESOP Releveraging Transaction

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The U.S. District Court for the Western District of Arkansas issued its written decision in Shipp v. Central States Manufacturing, Inc. on July 5, 2024, declining to dismiss the case against Central States Manufacturing Inc....more

Littler

Alberta, Canada Court Holds Senior Executive Personally Liable to Employer

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In Breen v Foremost Industries Ltd, 2023 ABKB 552, the Court of King’s Bench of Alberta dismissed the claim of a President and CEO that he had been wrongfully dismissed from his employment, finding that his employment had...more

Rivkin Radler LLP

The Employment Law Reporter: Autumn 2023

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Here is what we cover in this issue of Employment Law Reporter Autumn 2023: • The U.S. Court of Appeals for the Second Circuit has affirmed a decision by the U.S. District Court for the Southern District of New York...more

Littler

Ontario, Canada Appeal Court Upholds Refusal to Impose Constructive Trust Over Proceeds of Sale of Property Owned by Defrauding...

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A recent Ontario Court of Appeal (OCA) decision demonstrates the process an employer may be expected to undertake to recover employee-stolen funds when the proceeds of the fraud are traced to the assets of a “stranger to the...more

Holland & Knight LLP

Court Compels Proposed ESOP Class to Individual Arbitration Based on Plan Document

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Historically, courts around the country have approached the enforceability of class action waivers and arbitration provisions in ESOP and Employee Retirement Income Security Act of 1974 (ERISA) plan documents differently,...more

Miller Canfield

Arbitration of Fiduciary Breach Claim Cannot Be Compelled by Relying on Individual Employment Agreements

Miller Canfield on

In Hawkins, et al. v. Cintas Corp., No. 21-3156, __ F.4d __ (2022), plaintiffs brought a class action pursuant to Section 502(a)(2) of the Employee Retirement Income Security Act (ERISA), alleging that their former employer...more

Nutter McClennen & Fish LLP

Judge Strikes Fiduciary Duty Claims Asserted by FTI Against Former Employees, But Not Aiding and Abetting Claim Asserted by FTI...

FTI sued three of its former employees who went to work for Berkeley Research Group (Berkeley), an FTI competitor. The former employees, FTI alleged, breached their FTI employment contracts and their fiduciary duty of loyalty...more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Rules Sales Manager Owed Fiduciary Duty to Employer

The recent decided case of Duplessis Buick-GMC Truck, Inc. v. Chauncey offers Louisiana employers a powerful cause of action against highly trusted former employees for breach of fiduciary duty - one that is akin to an action...more

Morgan Lewis - ML Benefits

401(k) Fiduciary Breach Claims Not Subject to Arbitration, Second Circuit Decides

Reversing a lower court’s decision, the US Court of Appeals for the Second Circuit issued an opinion in Cooper v. DST Systems, Inc., et al., finding that an arbitration agreement signed by an employee as part of his...more

FordHarrison

Non-Compete News: Georgia Court Holds Contractor Owes Fiduciary Duty/Duty of Loyalty

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In late 2019, the Northern District of Georgia (Atlanta federal court) addressed the duties owed when an independent contractor leaves one trucking company to work for another. In Wind Logistics Prof’l v. Universal Truckload,...more

American Conference Institute (ACI)

[Event] ERISA Litigation – Valuable insights on how to prevent, manage and defend against rising, costly ERISA disputes - November...

Ensure that You are Equipped with the Latest Updates and Strategies to Prevent, Manage and Defend Against Rising, Costly ERISA Disputes - This annual event is your best opportunity to gain best practices for your everyday...more

Littler

Striking Down Decades-Old Precedent, Ninth Circuit Rules That ERISA Breach of Fiduciary Duty Claims May Be Arbitrated

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On August 20, 2019, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit issued an opinion in Dorman v. Charles Schwab Corp., overturning its 1984 position in Amaro v. Continental Can Co. that lawsuits filed...more

Fisher Phillips

Lessons For Employers From Recent Fiduciary Litigation

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There has been a surge of court decisions over the last year addressing fiduciary liability for welfare benefit plans under the Employee Retirement Income Security Act of 1974 (ERISA). These lawsuits should prompt you to...more

Robinson+Cole ERISA Claim Defense Blog

Ninth Circuit Holds That Employees’ ERISA Breach of Fiduciary Duty Claim Against Their Employer is Not Subject to the Mandatory...

In Munro v. University of Southern California, No. 17-55550, 2018 U.S. App. LEXIS 20522 (9th Cir. July 24, 2018), the U.S. Court of Appeals for the Ninth Circuit held that employees alleging an ERISA breach of fiduciary duty...more

Holland & Knight LLP

Ninth Circuit: Individual Employment Provision Cannot Compel Arbitration of 409(a) Claim - Ruling Leaves Open Whether Contracts or...

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• The U.S. Court of Appeals for the Ninth Circuit's recent decision in Munro v. University of Southern California concluded that an arbitration provision in individual employment contracts could not be used to compel...more

Seyfarth Shaw LLP

The Ninth Circuit Addresses Whether To Enforce An Agreement To Arbitrate ERISA Claims

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Seyfarth Synopsis: The Ninth Circuit declined to enforce an agreement to arbitrate ERISA Section 502(a)(2) claims, but did not rule out enforcement in other ERISA claim contexts....more

Faegre Drinker Biddle & Reath LLP

Defending Against Class Actions: Four Strategies for ERISA Litigation

They are the words in-house counsel dread to see in the caption of a new lawsuit: “on behalf of themselves and all others similarly situated.” ERISA class actions present special challenges and risks to plan sponsors and...more

Robinson+Cole Data Privacy + Security Insider

Lincare Settles Class Action Data Breach Case with Employees

Lincare Holdings Inc. (Lincare), following mediation, recently entered into a settlement with its employees regarding a data breach that took place on February 3, 2017. ...more

Winstead PC

Court Holds That There Is A Fact Issue By Former Employer Against Employee For Breach Of Fiduciary Duty In Self-Dealing...

Winstead PC on

In Roberts v. Overby-Seawell Co., an employee sued his former employer for the failure to pay commissions. No. 3:15-CV-1217-L, 2018 U.S. Dist. LEXIS 47821 (N.D. Tex. March 23, 2018). ...more

Carlton Fields

Arbitration Provision Enforceable Despite Questions About Legitimacy Of Remainder Of Agreement

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A New York state trial court has denied a motion to stay arbitration in an action brought by plaintiffs, a private equity firm and its affiliate, against defendants, two of plaintiffs’ former officers, despite plaintiffs’...more

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