By: Daily Record Staff//August 22, 2014
By: Daily Record Staff//August 22, 2014//
U.S. Court of Appeals for the Second Circuit
New York General Obligations Law 5-335 — Preemption
Wurtz v. Rawlings Co.
Judges Walker, Cabranes and Parker
Background: The plaintiffs sought to enjoin the defendant insurers under New York’s General Obligations Law from obtaining reimbursement of medical benefits from the plaintiffs’ tort settlements. The defendants removed the case to federal court and then had the case dismissed on the basis that the plaintiffs’ claims were subject to both complete and express preemption under the Employee Retirement Income Security Act.
Ruling: The Second Circuit remanded. The court held that the plaintiffs’ claims do not satisfy the Supreme Court’s test for being subject to complete ERISA preemption. The court found that the claims were not preempted.
Franklin P. Solomon of the Solomon Law Firm and Steven J. Harfenist of Friedman, Harfenist, Kraut & Perlstein for the plaintiffs-appellants; Richard W. Cohen of Lowey Dannenberg Cohen & Hart for the defendants-appellees