U.S. Supreme Court Limits ERISA Plan’s Subrogation Rights Where Participants Have Dissipated Funds Recovered from Third Parties – A New “Use It Or Lose It" Rule?

January 26, 2016

Over the years, the U.S. Supreme Court from time to time has explored the scope of equitable relief available under the Employee Retirement Income Security Act of 1974 (“ERISA”) in circumstances where an employee benefit plan or insurance company seeks to enforce a subrogation right to recover amounts received by a plan participant from a third party. Last week, on January 20, 2016, the Court decided the latest such case, Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan.

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