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Contracts
Breach of Fiduciary Duty
ERISA

Monica Quintero, et al. v. The Rawlings Company LLC, et al.

Published: Jul. 21, 2012 | Result Date: Jun. 18, 2012 | Filing Date: Jan. 1, 1900 |

Case number: 2:2012-cv-03478 Bench Decision –  Defense

Court

USDC Central


Attorneys

Plaintiff

Timothy J. Donahue
(Law Office of Timothy J. Donahue)


Defendant

Michelle L. Steinhardt

Ronald K. Alberts
(Gordon & Rees LLP)


Facts

Plaintiffs filed a class action against The Rawlings Co. LLC and Rawlings Financial Services LLC based on alleged state law violations and the alleged interference and seizure of settlement payments.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiffs alleged that Defendants tried to interfere with third party personal injury settlements by putting an improper lien on the settlement proceeds for costs related to their medical treatments.

DEFENDANT'S CONTENTIONS:
Defendants argued that the plain language of the self-funded ERISA governed health care plan notified the plaintiffs and the attorneys before the settlement was reached that the plaintiffs would need to reimburse the employer for medical benefits paid on their behalf. Defendants further argued Plaintiffs state law claims were preempted by ERISA.

Result

The court granted defendants' motion to dismiss.


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