Supreme Court Rules ERISA Subrogation preempts State Law

By Michael Laffey, October 21, 2013

The Supreme Court has ruled that State equitable principles do not preempt ERISA plan language. Plaintiff in a UIM settlement refused to reimburse the ERISA self-funded plan claiming that it was inequitable that the Plan recover all of the third party funds with nothing being left for the participant. The Court ruled that there was an equitable lien by agreement and that the Plan language was clear and not subject to equitable interpretation . See case.