Filed: Jan. 18, 2011
Latest Update: Feb. 21, 2020
Summary: [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT FILED _ U.S. COURT OF APPEALS ELEVENTH CIRCUIT No. 10-10215 JANUARY 18, 2011 _ JOHN LEY CLERK D.C. Docket No. 9:08-cv-81403-DTKH JOHNSON CONTROLS, INC., in its capacity as fiduciary for the Johnson Controls, Inc. Welfare Plan, lllllllllllllllllllll Plaintiff - Appellee, versus DANIEL J. FLAHERTY, METNICK, LEVY & LONG, P.A., lllllllllllllllllllll Defendants - Appellants. _ Appeal from the United States District Court
Summary: [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT FILED _ U.S. COURT OF APPEALS ELEVENTH CIRCUIT No. 10-10215 JANUARY 18, 2011 _ JOHN LEY CLERK D.C. Docket No. 9:08-cv-81403-DTKH JOHNSON CONTROLS, INC., in its capacity as fiduciary for the Johnson Controls, Inc. Welfare Plan, lllllllllllllllllllll Plaintiff - Appellee, versus DANIEL J. FLAHERTY, METNICK, LEVY & LONG, P.A., lllllllllllllllllllll Defendants - Appellants. _ Appeal from the United States District Court f..
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[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT FILED
________________________ U.S. COURT OF APPEALS
ELEVENTH CIRCUIT
No. 10-10215 JANUARY 18, 2011
________________________ JOHN LEY
CLERK
D.C. Docket No. 9:08-cv-81403-DTKH
JOHNSON CONTROLS, INC.,
in its capacity as fiduciary for the
Johnson Controls, Inc. Welfare Plan,
lllllllllllllllllllll Plaintiff - Appellee,
versus
DANIEL J. FLAHERTY,
METNICK, LEVY & LONG, P.A.,
lllllllllllllllllllll Defendants - Appellants.
________________________
Appeal from the United States District Court
for the Southern District of Florida
________________________
(January 18, 2011)
Before BARKETT, MARCUS and FAY, Circuit Judges.
PER CURIAM:
In this ERISA1 action, Appellants David J. Flaherty (“Flaherty”) and Metnick,
Levy & Long, P.A. (“Metnick”) appeal from a final order of summary judgment
entered by the district court in favor of Flaherty’s employer, Johnson Controls, Inc.
(“Johnson Controls”). Johnson Controls sought reimbursement from Flaherty,
pursuant to 29 U.S.C. § 1132(a)(3), for medical benefits that its employee benefits
plan, Johnson Controls, Inc. Welfare Plan (“the Plan”), had paid on his behalf in
connection with a bicycle injury, after Flaherty recovered settlement proceeds for the
injury from a third party. Flaherty and Metnick argue that Metnick’s attorneys’ fees
and costs incurred in obtaining the settlement -- amounting to $14,467.44 -- must be
deducted from the settlement proceeds before the funds are subject to the Plan’s
reimbursement claim.
Section 6.06 of the Plan expressly provides, however, that when an employee
receives benefits under the Plan and thereafter recovers for his injuries from a third
party, the Plan “has the right to be reimbursed for such benefits in full,” and “no
portion of the [Plan]’s recovery shall be reduced by[] the fees or costs (including
attorney’s fees) associated with any claim, lawsuit, or settlement agreement in
connection with any recovery, without the express written consent of the Plan
Administrator.” (Emphasis added). The Summary Plan Description also plainly says
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Employee Retirement Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq.
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that the Plan “ha[s] the right to be reimbursed in full before any amounts (including
attorneys’ fees) are deducted from any policy, proceeds, judgment or settlement,” and
that the Plan’s “right to . . . reimbursement takes preference over any other claims
against the recovery, . . . regardless of how settlement proceeds are characterized.”
Where the terms of an ERISA plan are clear and unambiguous -- as they are
here -- we must enforce them as written. See Zurich Am. Ins. Co. v. O’Hara,
604
F.3d 1232, 1239 (11th Cir. 2010) (holding that “full reimbursement according to the
terms of the Plan’s clear and unambiguous subrogation provision [wa]s necessary .
. . to effectuate ERISA’s policy of preserving the integrity of written plans”). The
district court correctly applied the unambiguous terms of the Plan, requiring Flaherty
to reimburse Johnson Controls for the entire amount it paid in medical expenses on
Flaherty’s behalf, without deduction for attorneys’ fees and costs.
Accordingly we AFFIRM.
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