Arce

Westaff (USA) Inc. v. Arce

Good Law
298 F.3d 1164
United States Court of Appeals for the Ninth CircuitAugust 15, 2002Nos. 00-16178, 01-15751California922 words

Opinion

Lead Opinion

Schroeder, J.

Westaff (USA), Inc. appeals the dismissal of its action for reimbursement of medical benefits paid to Betty Arce, and the award of attorney’s fees to Arce, a beneficiary of Westaff s ERISA employee benefit plan. The issue is whether Westaff could bring this action seeking a money judgment in federal court, despite the provision in ERISA permitting suits only for equitable relief. See 29 U.S.C. § 1132 (a)(3). Westaff contends that its action is allowed because the money sought is being held in escrow. We hold the existence of the escrow does not affect the application of the statute and affirm both the district court’s dismissal and the award of fees.

Westaff is the administrator of the Western Staff Services Employee Health Plan, an employee welfare benefit plan within the meaning of ERISA, 29 U.S.C. § 1002 (1). Betty Arce was an employee of Westaff and a “covered person” under the Plan. The terms of the Plan provided that the Plan had subrogation and reimbursement rights in any monies received by a covered person from a third party tortfea-sor, to the extent that the recovered funds reimbursed the covered person for medical expenses that had been paid by the Plan. After…

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