Synergy Blog

From Roger Baron: N.Dis. Illinois Rejects Longaberger, rules in favor of PI Attorney who disbursed funds

Reprinted with permission from Roger Baron

“In Crawford & Company v. Repp, (N.D.Ill. 3/6/12), the court rejected the 6th Circuit’s decision in Longaberger, relying upon existing 7th Circuit case law.  This decision protects a personal injury attorney who had disbursed funds, holding that he is not subject to an ERISA plan’s claim for reimbursement under §502(a)(3) on the theory of “constructive possession.”  This court also refuses to assert jurisdiction over state-law claims of “conversion and tortious interference with a contractual expectancy” against the attorney.  As to underlying theory of the Longaberger decision, this opinion states, ‘In this court’s judgment, however, Longaberger misapplied the holding in Sereboff to a defendant who was not a plan participant.’ ”

To view the decision, click HERE

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