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Louis quoted in Law 360 on ERISA reimbursement ruling

Attorneys React To High Court ERISA Reimbursement Ruling

Bob Louis, a partner in Saul Ewing’s Personal Wealth, Estates and Trusts Practice, was quoted in this article in Law 360. The article discusses the recent ruling by the U.S. Supreme Court on the Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan case. According to the article, the ruling states “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.” 

In regards to the ruling Bob said, “This case can be described by paraphrasing an old legal adage: careless plan administrators make bad law. Mr. Montanile recovered a verdict for an auto accident, and the plan requested reimbursement of benefits paid. The parties negotiated, but couldn’t agree on repayment, so Montanile’s lawyer paid the funds to his client, hearing no objection from the administrator. Montanile apparently spent the money. The Supreme Court said the plan had a lien only against the fund, and since the fund was gone, so was its lien. The administrator slept on its rights long enough to lose them.”

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