Justices Say ERISA Plan Can't Chase Spent Settlement Funds

Law360, New York (January 20, 2016, 10:23 AM EST) -- The U.S. Supreme Court ruled on Wednesday that a retirement plan cannot sue under the Employee Retirement Income Security Act for reimbursement of medical expenses from a third-party settlement that a plan participant has already spent.

The 8-1 ruling came down in a case in which the National Elevator Industry Health Benefit Plan sought reimbursement of medical expenses from a man who spent a personal injury lawsuit settlement. Justice Ruth Bader Ginsburg dissented.

The plan had paid Robert Montanile about $122,000 to cover medical expenses stemming from a car accident in which Montanile was injured by a drunken driver. Montanile later sued...

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