Case: Health Care & Benefits/Reimbursement (W.D.N.C.)

A federal district court in North Carolina adopted as modified a U.S. magistrate judge’s memorandum and recommendation in Duke Energy Benefits Committee’s action against an employee and DeMayo Law Offices, seeking reimbursement from the employee’s settlement proceeds, and denied DeMayo’s motion to dismiss. The employee received a settlement of tort claims from a motor vehicle accident, but contrary to the health plan’s asserted rights of subrogation and reimbursement, reimbursed the plan only a portion of the funds. The magistrate said that ERISA authorizes a plan administrator to sue a participant’s attorney to obtain reimbursement from the participant’s settlement proceeds, and ...