Synergy Blog

Lien Resolution Success Story – Synergy splits hairs and uses McCutchen to achieve a series of reductions in the subrogation demand from an aggressive self-funded ERISA Plan

Synergy Lien Resolution Service was able to resolve a large series of subrogation claims being asserted in unrelated matters by a large, regional grocery store corporation. These were cases in which the plaintiffs were members of the corporation’s self-funded ERISA health plan, which has very strong recovery language. The corporation has a policy of aggressively prosecuting their subrogation/reimbursement claims, wherein they typically demand and receive 100% repayment. The corporation is so aggressive they have even insisted that their claims administrator create a recovery group solely dedicated to collecting their repayment demands. 

Despite this overly aggressive stance, Synergy has been able to leverage its knowledge, experience, and negotiation tactics to achieve a series of reductions ranging from 13% – 34%.  The basis for the reductions was a fine splitting of hairs involving the “common fund” doctrine as expressed in U.S. Airways v. McCutchen versus the “attorney fee” language contained in the corporation’s Master Plan Document.  Though the corporation maintains its position that their plan language does abrogate “common fund,” Synergy was able to convince their attorneys that the rationale of McCutchen might find their plan language lacking. This is a shining example of how Synergy’s ability to take advantage of the ever changing subrogation landscape can be used to benefit injured plaintiffs who are transitioning from litigation to life.


"In my twenty-two year career as a trial lawyer I've handled my share of catastrophic cases and structures, but imagine the complexity of an engaged, unwed mother catastrophically injured during delivery, giving birth to a healthy child, but left in a vegetative state? The issues of guardianship and entitlements of the newborn, the rights of the biological father-fiancé, an out-of-state teenage child of the mother, lifetime maintenance of the mother, as well as the rights of family of the mother, who became her primary care-takers? Synergy systematically managed the seven figure tender of one defendant, the establishment of a Qualified Settlement Fund, a Special Needs Trust, and multiple structures, all the while concurrently maintaining the various entitlements to ancillary services, as well as the remaining litigation. Everything was handled professionally, timely and literally without a hitch. Truly an amazing feat."

Marcus J. Michles II
Michles & Booth

"Synergy is an invaluable partner in the mediation process. They have extensive expertise in Medicare, Medicaid and Structured Settlements and the ability to explain the impact of these complex concepts to my clients in simple, clear and understandable language. This allows me to focus on obtaining the best possible result in the settlement process."

Michael J. Winer, Esq.
President Florida Workers Advocates (FWA)

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