Common-Fund Doctrine Applies To ERISA Health Plans.

Plaintiff, an employee of an airline, brought an action against a third party for injuries and his lawyers secured $110,000 for him. After deducting 40 % for the contingency fees, plaintiff received $66,000. The airline has a health benefits plan which entitles the airline to reimbursement if an employee recovers money from a third party. The plan paid $66,866 for plaintiff’s medical bills, and the airline demanded reimbursement of the full amount, eventually bringing an action against the plaintiff under the Employee Retirement Income Security Act of 1974 [ERISA; 29 U.S.C. § 1001]. The district court granted summary judgment in the airline’s favor. The Third Circuit reversed reasoning there was unjust enrichment. The United States Supreme Court vacated the judgment and remanded the matter for further proceedings, stating the terms of the ERISA plan govern, so general principles of unjust enrichment cannot override the applicable contract. The Court stated, however, that the ERISA contract is properly read to retain the common-fund doctrine. U.S. Airways, Inc. v. McCutchen (U.S. Sup. Ct.; April 16, 2013) 133 S.Ct. 1537, [185 L.Ed.2d 654].