5th Circ. Vacates Humana Win In ERISA Wreck Payout

Law360, New York (May 11, 2015, 8:24 PM EDT) -- The Fifth Circuit on Monday reversed a ruling that allowed Humana Health Plan Inc. to recover payments made to a Texas man injured in a car accident, saying the district court wrongly found that Humana could independently investigate and prosecute claims made under the Employee Retirement Income Security Act.

The appeals panel's 2-1 ruling reversed a summary judgment finding in its favor from last May, finding that because Humana agreed to operate under the management policies of the company that established its employee benefits plan, API Enterprises Inc., it could not override API's initial decision not to seek reimbursement from the...

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