Tuesday, May 23, 2006

SCOTUS decides ERISA case and resolves a spit in the circuits

The opinion is not up yet on the SCOTUS web site, but according to CCH, the U.S. Supreme Court has unanimously upheld a decision by the U.S. Court of Appeals for the Fourth Circuit allowing a health plan administrator to obtain reimbursement under a subrogation clause from a participant who had recovered from a third party in a tort action. According to the Court, the health plan's claim for reimbursement was equitable in nature, and, as a result, the plan properly sought equitable relief under ERISA 502(a)(3). The High Court's opinion resolves a split among the Circuit Courts of Appeal.

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