Facts

The Board of Trustees of Sheet Metal Workers' Health Plan of Southern California, Arizona and Nevada is an employer welfare benefit plan and a multiemployer plan created pursuant to collective bargaining agreements between various employers and individual contractors in Southern California, Arizona, and Nevada in the sheet metal industry and local unions of the International Association of Sheet Metal Air Rail and Transportation Workers. Under the terms of the plan, if a participant becomes disabled, he is entitled to health and welfare benefits for as long as he is unable to work in the sheet metal industry. After the first 13 weeks of such coverage, the participant is required to pay a monthly "self-pay" premium to maintain coverage. If the participant works in Sheet Metal Service for a non-signatory employer, the participant loses eligibility for the health and welfare benefits. Defendant Scott Eubanks is a participant to the plan. From March 2015 through October 2017 defendant received health and welfare benefits for his disability. Plaintiff sued defendant for equitable restitution and disgorgement under the Employee Retirement Income Security Act of 1974 Section 502(a)(3) to recover the health and welfare benefits provided to defendant, offset by the amount of self-pay premiums paid to the plan by defendant during that same period.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant wrongfully received health and welfare benefits from the plan because defendant claimed that he was disabled when he was not in fact disabled. Plaintiff contended that defendant intentionally misrepresented that he was disabled on the evidence of disability forms submitted to plaintiff when in fact defendant was healthy enough to engage in sheet metal work.

DEFENDANT'S CONTENTIONS: Defendant denied plaintiff's contentions.

Result

The court entered judgment on a stipulation for judgment in favor of plaintiff and against defendant in the amount of $27,465.36. The terms of the stipulation for judgment permitted the defendant to satisfy the judgment for the lesser amount of $13,000 paid over a one-year period but provided that he would be liable for the full judgment if he failed to pay the lesser amount as agreed.