Sereboff v. Mid Atlantic Medical Services
Mid Atlantic Medical Services, Inc. (MAMSI) sued the Sereboffs for reimbursement of nearly $75,000 that MAMSI had paid the Sereboffs in accident-related benefits, after the Sereboffs recovered $750,000 from the offending tortfeasors in a personal injury action. MAMSI, which is a plan fiduciary under the Employee Retirement Income Security Act (ERISA), sued under Section 502(a)(3), which allows ERISA fiduciaries to obtain "appropriate equitable relief" from plan beneficiaries. MAMSI argued that, as plan beneficiaries, the Sefeboffs were required to reimburse MAMSI for benefits paid on their behalf out of the proceeds of the personal injury action. The district court granted MAMSI’s motion for summary judgment, stating that the reimbursement MAMSI sought was equitable in nature under ยง 502(a)(3). The Fourth Circuit Court of Appeals affirmed, finding the reimbursement to be equitable because (1) the funds being recovered were identifiable, (2) they belonged in good conscience to MAMSI and (3) they were within the possession and control of the Sereboffs.
Question Presented:
Can a plan fiduciary bring a civil action against a plan participant to obtain "appropriate equitable relief" under Section 502(a)(3) of the Employment
Retirement Income Security Act (ERISA) where a term of the plan requires the participant to reimburse medical expenses advanced by the plan if the participant recovers money from a third-party
tortfeasor and possesses such payments in an identifiable fund?
