Hartenbower v. Dent

963 F. Supp. 712, 1997 U.S. Dist. LEXIS 6571, 1997 WL 241798
CourtDistrict Court, N.D. Illinois
DecidedMay 7, 1997
DocketNo. 97 C 038
StatusPublished
Cited by1 cases

This text of 963 F. Supp. 712 (Hartenbower v. Dent) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartenbower v. Dent, 963 F. Supp. 712, 1997 U.S. Dist. LEXIS 6571, 1997 WL 241798 (N.D. Ill. 1997).

Opinion

MEMORANDUM OPINION AND ORDER

ALE SLA, District Judge.

Before the court is plaintiffs Milton F. Hartenbower, individually and as guardian of John Hartenbower, a minor, and Catherine Hartenbower’s motion to remand their case to state court pursuant to 28 U.S.C. § 1447 for lack of subject matter jurisdiction. For the following reasons, the court denies the motion to remand.

I. BACKGROUND

On November 13,1992, defendant Caroline Dent’s vehicle struck John Hartenbower, causing him to suffer multiple injuries. John’s parents, Milton and Catherine Hartenbower, filed a negligence action against Dent. Subsequently, State Farm Insurance Company, the auto insurance carrier for Dent, offered to settle the suit for $50,000, the full amount of the available coverage, in exchange for a full release of all other causes of action against Dent. On October 22, 1996, the Hartenbowers filed a petition for settlement of a minor’s cause of action, adjudication of liens, and other relief.

At the time of the accident, Milton Hartenbower was an employee of Electrical Specialties Company and was a participant in its employee benefit plan (“the Plan”). Although the Hartenbowers have made claims against the Plan for payment of the medical expenses arising from John’s accident, the Plan has denied liability, asserting that the language of the Plan only holds the Plan liable to the extent that the medical expenses exceed the relief available through other insurance or settlement proceeds. The issue of whether the Plan is liable for all or a portion of John’s medical expenses currently is pending in this judicial district before Judge Williams, in Hartenbower v. Electrical Specialties Co. Health Benefit Plan, Case No. 95 C 1638.

Because the Plan’s potential subrogation and reimbursement rights could be at issue in the settlement of the Hartenbowers’ negligence action and the adjudication of liens, the Plan sought to intervene in the underlying negligence action. On January 3,1997, after having been granted permission to intervene, the Plan removed the negligence case to this court pursuant to 28 U.S.C. § 1441(c). The Plan asserts that the resolution of the Hartenbowers’ petition requires the court to construe or interpret the terms of the Plan; and because section 502(a)(1)(B) of the Employee Retirement Income Security Act (“ERISA”), as amended, 29 U.S.C. § 1132(a)(1)(B), completely preempts state actions by plan participants that involve construing or interpreting the terms of an ERISA plan, the case belongs in federal court. The Hartenbowers seek to remand the ease to the Circuit Court of LaSalle County, Illinois, Thirteenth Judicial Circuit, from which it was removed, as[714]*714serting that the action is solely a common law negligence action. The Hartenbowers also argue that because the Plan has not yet disbursed any funds for the payment of their medical expenses, the Plan’s subrogation rights are not at issue.

II. DISCUSSION

The “well-pleaded complaint rule” mandates that the federal district court only has subject matter jurisdiction if the suit, as the plaintiff originally framed it or could have framed it, would havé been within the district court’s original jurisdiction at the time of removal. Federal Deposit Ins. Corp. v. Elefant, 790 F.2d 661, 667 (7th Cir.1986); Fravel v. Stankus, 936 F.Supp. 474, 476 (N.D.Ill.1996). A mere defense of federal preemption does not confer federal question jurisdiction. See Rice v. Panchal, 65 F.3d 637, 639 (7th Cir.1995). However, under the doctrine of complete preemption, state common law claims falling within the scope of ERISA’s civil enforcement provision, section 502(a)(1)(B), 29 U.S.C. § 1132(a)(1)(B), are “displaced,” and thus removable to federal court. Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 60, 66, 107 S.Ct. 1542, 1544, 1548, 95 L.Ed.2d 55 (1987); Fravel, 936 F.Supp. at 477. Because Congress has manifested an intent to make a cause of action falling within ERISA section 502(a) removable to federal court, the doctrine of complete preemption applies to such an action, and a plaintiffs complaint in such an action can be recharacterized as a complaint arising under federal law. See Taylor, 481 U.S. at 66-67, 107 S.Ct. at 1548.

Section 502(a)(1)(B) of ERISA allows a plan participant or beneficiary “to recover benefits due to him under the terms of his plan, to enforce his rights under the terms of the plan, or to clarify his rights to future benefits under the terms of the plan.” 29 U.S.C. § 1132(a)(1)(B). The Seventh Circuit has held that an action by an ERISA plan participant is an action to “enforce his rights under the terms of the plan” within the scope of section 502(a)(1)(B) where “the claim rests upon the terms of the plan or the ‘resolution of the [plaintiffs] state law claim ... require[s] construing [the ERISA plan].’ ” Rice, 65 F.3d at 644-45 (quoting Lingle v. Norge Div. of Magic Chef Inc., 486 U.S. 399, 407, 108 S.Ct. 1877, 1882, 100 L.Ed.2d 410 (1988)). Relying on Rice, district courts have found that a plaintiffs motion to adjudicate liens requires construction and interpretation of an ERISA plan, and can be considered to be within the scope of ERISA section 502(a)(1)(B). See Musinski v. Staudacher, 928 F.Supp. 739 (N.D.Ill.1996); Fravel v. Stankus, 936 F.Supp. 474 (N.D.Ill.1996); Speciale v. Seybold, 951 F.Supp. 740 (N.D.Ill.1996).

For example, in Musinski the plaintiff had sued the defendant for medical expenses resulting from an automobile accident. After settling with the defendant, the plaintiff moved for adjudication of the lien asserted by his employee benefit plan. 928 F.Supp. at 740. The plaintiff already had received full payment of his medical expenses from the plan, but hoped to limit the amount of expenses that the plan was seeking to capture pursuant to its subrogation/indemnifieation provision. Id. The plan removed the case to federal court, and the plaintiff moved to remand. Id. The court denied the plaintiffs motion to remand, holding that removal was proper because the plaintiffs motion to adjudicate the lien fell within the scope of ERISA section 502(a)(1)(B) by requiring construction of the ERISA plan. Id. at 743. The court stated:

In ERISA § 502(a)(1)(B) terms, Musinski’s claim may perhaps not be one “to recover benefits,” and perhaps he might not be characterized as resisting Blue Cross’ effort to enforce its rights under the Plan rather than seeking to enforce his own, but it is surely the case that in the language Rice adapted from Lingle,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Varco v. Lapsis
172 F. Supp. 2d 985 (N.D. Illinois, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
963 F. Supp. 712, 1997 U.S. Dist. LEXIS 6571, 1997 WL 241798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartenbower-v-dent-ilnd-1997.