8th Circuit: Subrogation Clause Not Enforceable Against Beneficiary's Law Firm

ST. LOUIS - A welfare benefit plan may not enforce its subrogation provision as an implied contract or in equity under the Employee Retirement Income Security Act, 29 U.S.C.S. § 1001 et seq., against a law firm that acknowledged the validity of the provision during its representation of a plan beneficiary in a civil lawsuit but that did not agree to be bound by the provision, the Eighth Circuit U.S. Court of Appeals affirmed Sept. 7 (Treasurer, Trustees of Drury Industries, Inc. Health Care Plan and Trust v. Sean Goding, et al.,, No. 11-2885, 8th Cir.; 2012 U.S. App. LEXIS 18815).

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