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Fifth Circuit Holds that Plan Can Obtain Reimbursement from Special Needs Trust

The federal Court of Appeals for the Fifth Circuit, whose jurisdiction covers the states of Texas, Louisiana, and Mississippi, issued an opinion on May 7, 2013 in ACS Recovery Services, Inc. v. Griffin, holding that the plan administrator and plan sponsor (collectively, ?Ç£ACS?Ç¥) of the group medical plan that covered employee Larry Griffin (the ?Ç£Plan?Ç¥) could recover from a special needs trust nearly $50,000 of medical expenses paid by the Plan on Mr. Griffin?ÇÖs behalf when he was injured in an automobile accident.?á Mr. Griffin and his ex-wife filed suit against the company responsible for the other vehicle (the ?Ç£Third Party?Ç¥) and obtained a settlement with a present value of just over $294,000.?á The Plan?ÇÖs terms provided that it would have ?Ç£a first lien upon any recovery, whether by settlement, judgment, arbitration, or mediation?Ç¥ obtained in a third-party action, and further provided that a participant must not take any action… Continue Reading

May 2013
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