November 2012

Many ERISA plans contain “subrogation” or “reimbursement” provisions. Can equitable defenses change the Plan’s reimbursement rights?

You need to know about US Airways Inc. v. McCutchen — a critical case before the United States Supreme Court, with oral argument set for tomorrow.

THE ISSUE: Whether “equitable defenses” can limit a plan’s recovery under ERISA

We know that an ERISA plan administrator both administering and funding the plan is operating under a “structural conflict of interest.”  This “structural conflict of interest” may lower the deference a trial court will give to the plan administrator’s benefits decision.

So, ERISA plans frequently delegate a plan administrator different from the funding source of