Some ERISA news from Connecticut

Thanks to Professor Roger Baron (Roger.Baron@usd.edu) for the following:

“In Hartford v. State Farm, 2010 WL 2365657 (Conn.Super. 5/5/10) the ERISA plan put the tortfeasor’s liability insurer, State Farm, “on notice” of a lien assertion in the amount of $10,760.85.  When the ERISA beneficiary claim was settled, State Farm made the check payable only to the beneficiary and her attorney.  State Farm did not include the ERISA plan as a payee on the check.  Accordingly, the ERISA Plan sued State Farm for failure to protect the lien assertion.  This decision sustains the Motion to Strike filed by State Farm.  This opinion rejects the ERISA Plan’s claims based upon “contractual subrogation” and also “equitable subrogation” because the plan is seeking “legal relief” not “equitable relief.”  This opinion also holds that State Farm does not have a fiduciary duty to the ERISA plan.”

Link to the opinion http://www.plaintiffsolutionscenter.com/CTERISAUPDATE.pdf