Walker v. Rose

In Walker v. Rose, 22 F. Supp. 2d 343 (D.N.J.1998), defendant's nine year old son was injured by an explosion and fire which occurred when an aerosol can was thrown into a picnic fire. Because of the son's severe injuries, the defendant's ERISA plan expended over $ 1.2 million on his medical care. Defendant subsequently sued a third party alleged to be responsible for the injuries. The litigants were in the process of negotiating a $ 600,000.00 settlement when plaintiff, the administrator of the ERISA plan brought a declaratory judgment action seeking turnover of the full settlement amount. The terms of the ERISA plan there, are substantially similar to the terms in issue here. The Walker court held that the reimbursement provision was unambiguous and clearly provided that the Plan had a first lien right "upon any recovery defendants receive from a third party." Id. at 351. However, although the court held that the Plan was entitled to receive monies recovered by the beneficiaries, it did not address the issue of attorney fees.