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By stan_sipple

Wal-Mart drops its $400k plus subrogation judgment against a former employee that the Eighth Circuit Court of Appeals had affirmed but the Court of Public Opinion had vetoed. Worker Comp Insider. Deb Shank suffered serous injuries in a motor vehicle accident. Her medical bills approached $500k but her settlement with the trucking company involved in the accident was just over $700k. The attorneys took their shares and the trial court set up a special needs trust for the wife, but provided nothing for Wal-Mart whose self-insured employee benefits plan paid the bulk of Shank's medical bills. Wal-Mart won summary judgment against Shanks trust assets. Eighth Circuit Court of Appeals affirmed. Wal-Mart sought appropriate equitable relief in the form of its constructive trust litigation against specific assets that should have been paid to the health plan. See Sereboff v. Mid Atlantic Medical Servs., Inc., 126 S.Ct. 1869 (2006){district courts have equitable jurisdiction to hear actions by ERISA plans to collect subrogation claims from participants under 29 U.S.C. § 1132(a)(3) (ERISA § 502(a)(3)) While state insurance law might have allowed the injured employee to subordinate Wal-Mart's claim because her settlement was inadequate, federal ERISA law prevails. In the end however, Wal-Mart walked away from the judgment. When Hillary or Obama Care goes on line, hang on to your hat with their subrogation provisions. You will miss good old Wal-Mart.

Full post as published by Showmeblawgs on May 03, 2008 (boomark / email).