Synergy Blog

From Roger Baron: 5th Circuit rules in favor of ERISA beneficiary and his wife where funds are in a structured settlement

Reprinted with Permission from Roger Baron

The 5th Circuit handed down ACS Recovery Services, Inc. v. Griffin today, April 2, 2012.  Mr. Griffin was seriously injured in an auto accident. The ERISA plan paid medical bills of $50,076.19.  The plaintiff’s attorney secured a settlement of $294,439.82 and arranged for a structured settlement annuity “in an effort to avoid any equitable lien assertion” by the ERISA Plan.  Mrs. Griffin received $40,000 for loss of consortium.  The ERISA plan sued Mr. Griffin and his wife, as well as the trustee and the trust designated to receive the annuity payments.  The trial court “dismissed the claims against all of the defendants.”  This decision by the 5th Circuit affirms that dismissal.  The dismissal as to Mr. Griffin and the trustee and the trust is appropriate because “no defendant ever had ‘possession’ of the disputed funds.”  The dismissal as to Mrs. Griffin is appropriate because the ERISA Plan lacks authority to “seek reimbursement out of an award for loss of consortium or out of an award made separately to a beneficiary’s spouse… This money was compensation paid to [Mrs.] Griffin for the loss of her husband’s society and companionship, not as compensation to [Mr.] Griffin for his injury.”

To view the opinion click HERE

TESTIMONIALS

"I just wanted to say thanks to you and the entire Synergy Settlement Services team for helping us put together a series of structured settlements and special needs trusts in two complex cases involving significant recoveries. As always, your accessibility, guidance and expertise on a whole host of post-settlement issues is very much appreciated and valued, particularly with respect to the often confusing topic of Medicare set asides. I look forward to our continued collaboration on cases in the future and am very appreciate of the first rate service your company continues to provide to our clients."

Stephan Le Clainche
Formerly of Babbitt, Johnson, Osborne & Le Clainche

"We have been using the lien resolution services Synergy offers for over a year, and it has been a load off of our back. As a trial attorney, I need my staff to spend time on litigation, not waste their time on hold with Medicare. The time and effort that we used to spend resolving issues with Medicare is now being used in much more productive ways. I haven’t called Medicare in over a year, and I hope I don’t have to call them again."

John D. Ayers, Esq.
Marks & Harrison, P.C.

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