5th Circ. Says ERISA Plan Gets 1st Dibs On Recovered Costs

Law360, New York (May 8, 2013, 9:02 PM EDT) -- The full Fifth Circuit ruled Tuesday that an administrator of an Employee Retirement Income Security Act plan could sue an employee’s special needs trust to recover medical expenses that the plan paid out but for which the employee later received a tort settlement.

A 10-judge majority of the Fifth Circuit reversed a three-judge panel’s earlier dismissal of the suit for lack of jurisdiction by holding that administrator ACS Recovery Services Inc. may, in fact, recover from a special needs trust the more than $50,000 it paid...
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