United States Sixth Circuit

In an action by an ERISA governed, self-funded employee welfare benefit plan seeking to enforce the terms of the Plan's reimbursement provisions against defendant-attorney and his client who had recovered tort settlement funds, summary judgment for plaintiff-plan is affirmed where: 1) the district court correctly granted plaintiff equitable restitution as authorized by section 502(a)(3) of ERISA; 2) defendant's judicial estoppel argument fails as it is not applicable where a party argues an inconsistent position based on a change in controlling law; 3) district court ruled correctly that plaintiff's Plan was self-executing and that the Plan language provides for an automatic and valid lien on the settlement funds to the extent of the benefits defendant's client received from the Plan; and 4) defendant is obligated to reimburse the Plan from the funds he received from liable third parties, and his decision to commingle these funds and not maintain them intact does not prevent enforcement of plaintiff's equitable lien by agreement under the terms of its ERISA plan.

Appellate Information

• Decided 11/16/2009
• Published 11/16/2009

Judges

• Before:  BATCHELDER, Chief Judge;  GRIFFIN, Circuit Judge;  TARNOW, District Judge.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  George H. Carr, Gallagher Sharp, Cleveland, Ohio, for Appellant.  Daran Paul Kiefer, Kreiner & Peters Co. L.P.A., Cleveland, Ohio, for Appellee.   ON BRIEF:  George H. Carr, Timothy John Fitzgerald, Gallagher Sharp, Cleveland, Ohio, for Appellant.  Daran Paul Kiefer, Kreiner & Peters Co. L.P.A., Cleveland, Ohio, for Appellee.