Ninth Circuit Overrules Amaro v. Continental Can Co.—Orders Individual, Not Class-Wide Arbitration.
Dorman, a former participant in the Schwab retirement savings and investment plan, filed a class action suit alleging the defendants violated ERISA and breached their fiduciary duties by including Schwab affiliated funds in the 401(k) plan. Defendants moved to compel arbitration under the 401(k) plan and compensation plan documents, which the district court denied. The Ninth Circuit granted Schwab’s interlocutory appeal, reversed its 1984 Amaro opinion in its published ruling, and in a separate, unpublished ruling followed the plan documents and ordered individual arbitration of Dorman’s claim.