Dugan v. Nickla, 763 F. Supp. 981 (N.D. Ill. 1991). · Go Syfert
Dugan v. Nickla, 763 F. Supp. 981 (N.D. Ill. 1991). Cases Citing This Book View Copy Cite
56 citation events (1 in the last 25 years) across 24 distinct courts.
Strongest positive: Harris v. Harvard Pilgrim Health Care, Inc. (mad, 1998-08-07) · Strongest negative: Culp, Inc. v. Cain (almd, 2006-02-14)
Treatment trajectory · 1991 → 2026 · click a year to view as-of
1991 2008 2026
Top citers, strongest first. 24 distinct citers.
discussed Cited "but see" Culp, Inc. v. Cain
M.D. Ala. · 2006 · signal: but see · confidence high
Sunbeam-Oster Co., Inc. Group Benefits Plan v. Whitehurst, 102 F.3d 1368, 1373 (5th Cir.1996); Cutting v. Jerome Foods, Inc., 993 F.2d 1293, 1296 (7th Cir.1993); Baxter v. Lynn, 886 F.2d 182, 187 (8th Cir.1989); Germany v. Operating Engineers Trust Fund of Washington, D.C., 789 F.Supp. 1165, 1167 (D.D.C.1992) (Revercomb, J.); but see Dugan v. Nickla, 763 F.Supp. 981 , 984 n. 6 (N.D.Ill.1991) (Hart, J.).
discussed Cited as authority (rule) Harris v. Harvard Pilgrim Health Care, Inc.
D. Mass. · 1998 · confidence medium
See United McGill Corp. v. Stinnett, 950 F.Supp. 134, 136-137 (D.Md. 1996) (allowing participant to reduce plan’s recovery by pro-rata share of reasonable attorney’s fees where plan was silent with respect to attorney’s fees); Carpenter v. Modern Drop Forge Co., 919 F.Supp. 1198, 1203-1204 (N.D.Ind.1995) (same); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991) (same).
discussed Cited as authority (rule) IBP, Inc. v. Foust
N.D. Iowa · 1997 · confidence medium
The court in Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991), without any real discussion, deducted attorneys’ fees from a subrogation award despite full reimbursement language, but it appears that the plan did not object to the payment.
cited Cited as authority (rule) Wood v. Prosser
Tenn. Ct. App. · 1997 · confidence medium
FMC Corp. v. Holliday, 498 U.S. 52, 58-61 , 111 S. Ct. 403, 407-09 (1990); Dugan v. Nickla, 763 F. Supp. 981, 983 (N.D.
discussed Cited as authority (rule) Bollman Hat Company v. Kevin T. Root Dale E. Anstine, P.C. Bollman Hat Company, as Sponsor of the Bollman Hat Company Health and Welfare Benefits Plan (2×)
3rd Cir. · 1997 · confidence medium
Co. v. Waller, 906 F.2d 985, 993 (4th Cir.) (requiring reimbursement under theory of unjust enrichment because ERISA indicates Congress's desire to ensure that plans are administered equitably and "that no one party, not even plan beneficiaries, should unjustly profit."), cert. denied, 498 U.S. 982 , 111 S.Ct. 512 , 112 L.Ed.2d 524 (1990); Dugan v. Nickla, 763 F.Supp. 981, 984-85 (N.D.Ill.1991) (reducing reimbursement to reflect payment of attorney's fees, despite plan language requiring full reimbursement)
discussed Cited as authority (rule) Bollman Hat Co v. Root
3rd Cir. · 1997 · confidence medium
Co. v. Waller, 906 F.2d 985, 993 (4th Cir.) (requiring reimbursement under theory of unjust enrichment because ERISA indicates Congress's desire to ensure that plans are administered equitably and "that no one party, not even plan beneficiaries, should unjustly profit."), cert. denied, 498 U.S. 982 (1990); Dugan v. Nickla, 763 F. Supp. 981, 984-85 (N.D.
discussed Cited as authority (rule) Lillie Green v. Hotel Employees & Restaurant Employees International Welfare-Pension Funds
9th Cir. · 1997 · confidence medium
Co. v. Williams, 858 F.Supp. 907, 912 (W.D.Ark.1994) (awarding the injured participant his attorney fees but recognizing that "if the right to reimbursement were contractually defined, the parties could expressly agree that reimbursement would be the first money out of the settlement monies with no deduction for attorneys fees and costs."). 14 Green points to three district court decisions, Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991), Serembus v. Mathwig, 817 F.Supp. 1414, 1423 (E.D.Wis.1992) and Cutting v. Jerome Foods, Inc., 820 F.Supp. 1146, 1155 (W.D.Wis.1991), aff'd on other grou…
discussed Cited as authority (rule) United McGill Corp. v. Stinnett
D. Maryland · 1996 · confidence medium
See Carpenter v. Modem Drop Forge Company, 919 F.Supp. 1198, 1206 (N.D.Ind.1995); Serembus v. Mathmg, 817 F.Supp. 1414, 1423-24 (E.D.Wis.1992); Dugan et al. v. Nickla, 763 F.Supp. 981, 984-85 (N.D.Ill.1991); Cutting v. Jerome Foods, Inc., 820 F.Supp. 1146, 1155 (W.D.Wis.1991).
discussed Cited as authority (rule) Health & Welfare Plan for Employees of REM, Inc. v. Ridler
D. Minnesota · 1996 · confidence medium
See Serembus v. Mathwig, 817 E.Supp. 1414, 1428 (E.D.Wis.1992); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991); Waller v. Hormel Foods Corporation Medical Plan, No. 3-95-116, 1996 WL 724134 (D.Minn.
discussed Cited as authority (rule) Blackburn v. Becker
N.D. Ill. · 1996 · confidence medium
See Cutting v. Jerome Foods, Inc., 820 F.Supp. 1146, 1155 (W.D.Wis.1991), aff'd on other grounds, 993 F.2d 1293 (7th Cir.1993); Serembus v. Mathwig, 817 F.Supp. 1414, 1423 (E.D.Wis.1992); Dugan v. Nickla, 763 F.Supp. 981, 984-85 (N.D.Ill.1991).
discussed Cited as authority (rule) Waller v. Hormel Foods Corp. (2×)
D. Minnesota · 1996 · confidence medium
See Travitz v. Northeast ILGWU Fund, 818 F.Supp. 761 , 770 n. 11 (M.D.Pa.1993) (court notes that despite beneficiary’s characterization of her “sizeable settlement” as one for pain and suffering, settlement agreement itself recites complete discharge of all claims; reimbursement not limited to recovery earmarked for medical expenses); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991) (jury’s apportionment of tort award irrelevant where reimbursement provision in ERISA plan included “any recovery”).
discussed Cited as authority (rule) Chitkin v. Lincoln National Insurance
S.D. Cal. · 1995 · confidence medium
E.g., McIntosh v. Pacific Holding Co., 992 F.2d 882, 884 (8th Cir.), cert. denied, — U.S. -, 114 S.Ct. 441 , 126 L.Ed.2d 375 (1993); Singleton v. Board of Trastees, of IBEW Local 613, 830 F.Supp. 630, 632 (N.D.Ga.1993); Cutting v. Jerome Foods, Inc., 820 F.Supp. 1146, 1155 (W.D.Wis.1991), aff'd, 993 F.2d 1293 (7th Cir.), cert. denied, - U.S. -, 114 S.Ct. 308 , 126 L.Ed.2d 255 (1993); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991); cf. U.S. Healthcare, Inc. v. O’Brien, 868 F.Supp. 607 (S.D.N.Y.1994) (ERISA plan not entitled to reimbursement from settlement in which no funds were alloc…
discussed Cited as authority (rule) US Healthcare, Inc.(New York) v. O'BRIEN
S.D.N.Y. · 1994 · confidence medium
The ERISA plan, under which the defendant had received coverage for his medical expenses, contained a subrogation provision which stated that “[ujpon any recovery made by an Employee ... from any person ... whether by suit, judgment, settlement, compromise, or otherwise, the Trustees ... shall be entitled to immediate reimbursement to the extent of benefits paid.” 763 F.Supp. at 984 (emphasis added).
discussed Cited as authority (rule) Printing Industry of Illinois Employee Benefit Trust v. Stout
N.D. Ill. · 1994 · confidence medium
Without citing Connors or any other authority, Judge Hart of this district has stated that "under § 1132(a)(3), a fiduciary may bring suit only for injunctive or equitable relief—not to recover benefits or monies due.” Dugan v. Nickla, 763 F.Supp. 981, 982 (N.D.Ill.1991).
discussed Cited as authority (rule) Singleton v. Board of Trustees, of IBEW Local 613
N.D. Ga. · 1993 · confidence medium
ILGWU H. & Fund, 818 F.Supp. 761, 770-71 (M.D.Pa.1993) (insured must reimburse plan for entire settlement recovery, even if characterized as pain and suffering); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991) (same).
discussed Cited as authority (rule) Travitz v. Northeast Department ILGWU Health & Welfare Fund
M.D. Penn. · 1993 · confidence medium
The two relevant Fund provisions clearly and unambiguously provide for assignment of a participant’s “right to recover loss,” and repayment “from any settlement received.” Hence, reimbursement for advances under the terms of the Plan must be made if there is any recovery at all from a third party, insurer, etc. See Dugan v. Nick-la, 763 F.Supp. 981, 984 (N.D.Ill.1991) (subrogation provision requiring reimbursement “upon any recovery made by an Employee” would be operative no matter how jury apportioned verdict).
discussed Cited as authority (rule) Serembus Ex Rel. UIU Health & Welfare Fund v. Mathwig (2×) also: Cited "see"
E.D. Wis. · 1992 · confidence medium
February 24, 1992) (court would not adopt Illinois anti-subrogation law as federal common law in light of the Supreme Court’s pronouncement in FMC Corp.); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991) (ERISA plan subrogation clause to recover medical payments is enforceable against all money recovered by beneficiary, whether or not for medical expenses); General Business Forms, Inc. v. Thornburg, 1989 WL 103382 , at *6, 1989 U.S. Dist.
discussed Cited as authority (rule) Cutting v. Jerome Foods, Inc. (2×) also: Cited "see"
W.D. Wis. · 1991 · confidence medium
Co. v. Linthicum, 930 F.2d 14 (8th Cir.1991) (ERISA allows subrogation clause to be enforced regardless whether beneficiary made whole); Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991) (ERISA plan subrogation clause to recover medical payments is enforceable against all money recovered by beneficiary, whether or not for medical expenses); General Business Forms, Inc. v. Thornburg, 1989 WL 103382 at *6, 1989 U.S. Dist.
cited Cited "see" Operating Engineers Health & Welfare Fund v. Arthur Straus Dawna Straus
9th Cir. · 1996 · signal: see · confidence high
See Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991). 27 Second, the language of any lien executed by the Strauses is not relevant to the reimbursement requirement established in Section 9(a).
cited Cited "see" Carpenter v. Modern Drop Forge Co.
N.D. Ind. · 1995 · signal: see · confidence high
See Dugan, 763 F.Supp. at 984-85 .
discussed Cited "see" Novak v. TRW, INC.
E.D.N.Y · 1993 · signal: see · confidence high
See Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991); (granting ERISA fund subrogation rights against portion of settlement purporting to be for pain and suffering); cf. Ellis v. Kenworth Motor Truck Co., 466 F.Supp. 441, 443 (N.D.Texas 1979) (in workers’ compensation case, insurer could reach damages recovered by an employee from a third-party tortfeasor for pain and suffering); Aetna Cas. and Sur.
cited Cited "see, e.g." Ninaus v. State Farm Mutual Automobile Insurance
Wis. Ct. App. · 1998 · signal: see also · confidence low
Id., at 1423 (citation omitted); see also Dugan v. Nickla, 763 F. Supp. 981 (N.D.
discussed Cited "see, e.g." Waller v. Hormel Foods Corporation
8th Cir. · 1997 · signal: compare · confidence medium
Compare Cagle v. Bruner, 112 F.3d 1510, 1520-21 (11th Cir.1997), with Cutting, 993 F.2d at 1299 , for cases applying the arbitrary and capricious standard of review 3 Compare Land v. Chicago Truck Drivers, Helpers & Warehouse Union Health & Welfare Fund, 25 F.3d 509, 511 (7th Cir.1994), Estate of Lake v. Marten, 946 F.Supp. 605, 610-11 (N.D.Ill.1996), and Blackburn v. Becker, 933 F.Supp. 724, 729 (N.D.Ill.1996), vacated, 115 F.3d 493 (7th Cir.1997), with Carpenter v. Modern Drop Forge Co., 919 F.Supp. 1198, 1203-06 (N.D.Ind.1995), Serembus v. Mathwig, 817 F.Supp. 1414, 1423 (E.D.Wis.1992), and…
discussed Cited "see, e.g." Thomas Waller v. Hormel Foods Corp.
8th Cir. · 1997 · signal: compare · confidence medium
Compare Land v. Chicago Truck Drivers, Helpers & Warehouse Union Health & Welfare Fund, 25 F.3d 509, 511 (7th Cir.1994), Estate of Lake v. Marten, 946 F.Supp. 605, 610-11 (N.D.Ill.1996), and Blackburn v. Becker, 933 F.Supp. 724, 729 (N.D.Ill.1996), vacated, 115 F.3d 493 (7th Cir.1997), with Carpenter v. Modern Drop Forge Co., 919 F.Supp. 1198, 1203-06 (N.D.Ind.1995), Serembus v. Mathwig, 817 F.Supp. 1414, 1423 (E.D.Wis.1992), and Dugan v. Nickla, 763 F.Supp. 981, 984 (N.D.Ill.1991).
William E. DUGAN, Et Al., Plaintiffs,
v.
Arthur W. NICKLA, Defendant
90 C 5380.
District Court, N.D. Illinois.
Apr 25, 1991.
763 F. Supp. 981
Bernard M. Baum, James Merrill Neu-man and Alan H. Auerbach, Baum & Sig-man, Ltd., Chicago, Ill., for plaintiffs., David Anthony Statham and Frank Angelo Moscardini, Jr., Donald A. Shapiro, Ltd., Chicago, Ill., for defendant.
Hart.
Cited by 34 opinions  |  Published
Pinpoint authority: bottom 49%

MEMORANDUM OPINION AND ORDER

HART, District Judge.

I. FACTS

Defendant Arthur Nickla had emergency surgery performed on his left knee. Alleging failure to promptly diagnose his knee condition, defendant filed a lawsuit in state court for medical malpractice and, on March 28, 1990, a jury awarded him $140,-750.[*982] [1] At the time of his surgery, Nickla was a participant in the Midwest Operating Engineers Welfare Fund (the “Fund”), which paid all of defendant’s medical expenses. The Fund was, and still is, an employee welfare benefit plan governed by Employee Retirement Income Security Act of 1974 (“ERISA”).

Under the Fund’s subrogation provision, Nickla is obligated to reimburse the Fund for any medical and disability payments that he recovers from a third party. [2] As a matter of policy, the Fund requires a participant, and the participant’s spouse, to sign a “Subrogation Agreement” whenever it appears that injuries may have been caused by the conduct of a third party. Defendant and his wife signed such a sub-rogation agreement and acknowledged their obligation to reimburse the Fund for medical expenses and disability benefits resulting from defendant’s knee surgery. [3] Pursuant to the subrogation provision, the Fund asserted a lien against Nickla’s state court judgment in the amount of $60,690.10 for reimbursement of medical benefits and $8,632.51 for reimbursement of disability benefits.

The parties disagreed as to the amount of money owed under the subrogation provision, and the Fund filed this suit claiming jurisdiction under 28 U.S.C. § 1331 — federal question. Plaintiff now moves for summary judgment and, defendant moves for dismissal under Rule 12(b)(1) for lack of subject matter jurisdiction. Jurisdictional questions must be considered, even if not raised by the parties. Fed.R.Civ.P. 12(h)(3) (“Whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action”); see also Wilson v. Civil Town of Clayton, Indiana, 839 F.2d 375, 384 (7th Cir.1988). Therefore, defendant’s motion to dismiss will be resolved before reaching the merits of the summary judgment motion.

II. SUBJECT MATTER JURISDICTION

Defendant argues plaintiffs’ complaint is actually a state law contract claim that is only tangentially related to ERISA and, as such, federal jurisdiction does not exist under ERISA’s jurisdictional provisions codified at 29 U.S.C. § 1132. Section 1132(e)(1) extends federal court jurisdiction to “civil actions under [ERISA] brought by the Secretary or by a participant, beneficiary, or fiduciary.” 29 U.S.C.A. § 1132(e)(1) (West 1985 & Supp.1990) (emphasis added). Furthermore, defendant argues, 29 U.S.C. § 1132(a)(3) is the only ERISA provision that extends jurisdiction to a fiduciary. Under § 1132(a)(3), a fiduciary may bring suit only for injunctive or equitable relief— not to recover benefits or monies due.

Plaintiff responds that its cause of action is not brought pursuant to § 1132, but is brought pursuant to 28 U.S.C. § 1331 — federal question jurisdiction. Plaintiffs contend that jurisdiction is based upon federal common law, and a claim based upon federal common law can be properly brought under federal question jurisdiction. See Illinois v. City of Milwaukee, Wisconsin, 406 U.S. 91, 92 S.Ct. 1385, 31 L.Ed.2d 712 (1972) (section 1331 supports claims brought pursuant to federal common law as well as statutory law). Under ERISA, Congress intended that federal courts create federal common law. See Firestone Tire and Rubber Co. v. Bruch, 489 U.S. 101, 110, 109 S.Ct. 948,[*983] 954, 103 L.Ed.2d 80 (1989) (“Given [ERISA’s] language and history, we have held that courts are to develop a ‘federal common law of rights and obligations under ERISA-regulated plans.’ ”) (quoting Pilot Life Ins. v. Dedeaux, 481 U.S. 41, 56, 107 S.Ct. 1549, 1558, 95 L.Ed.2d 39 (1987)). Thus, a litigant may properly bring a claim, which does not fall under 29 U.S.C. § 1132(a)’s grant of jurisdiction, pursuant to 28 U.S.C. § 1331. See Whitworth Bros. Storage v. Central States, S.E. & S.W. Areas Pension Fund, 794 F.2d 221, 233-36 (6th Cir.1986); Soft Drink Industry Local Union No. 744 Pension Fund v. Coca-Cola Bottling, 679 F.Supp. 743, 744-45 (N.D.Ill.1988) (claim asserting a right created by a federal statute presents a federal question).

It must, therefore, be determined whether resolution of this dispute mandates application of federal law to plaintiffs’ contract claim. If the answer is “yes,” the claim arises under federal law and jurisdiction is proper under § 1331. The only issue involved in this case is the amount of money due to the Fund under the subrogation provision. [4] Defendant admits the validity of plaintiffs’ claim. The sole issue presented is whether plaintiffs’ claim for reimbursement of medical expenses and disability is limited to the jury's award of medical expenses or whether the Fund may be reimbursed from the total amount of the verdict regardless of how the jury apportioned the verdict. In short, the question is whether the subrogation provision covers amounts received from third parties for pain and suffering, disability and disfigurement, and lost earnings. At first blush, the controversy appears to be a state law contract dispute subject to state law rules of interpretation. The Fund, however, is an ERISA regulated plan, and ERISA preempts state laws that “relate to any employee benefit plan.” 29 U.S.C. § 1144(a). State law contract claims are preempted by ERISA when the contract relates to employee benefit plans. See Maciosek v. Blue Cross & Blue Shield United, 930 F.2d 536, 539 (7th Cir.1991); Degan v. Ford Motor, 869 F.2d 889 (5th Cir.1989) (common-law contract claim based upon laws of general application preempted by ERISA); Anderson v. John Morrell & Co., 830 F.2d 872 (8th Cir.1987); Jackson v. Martin Marietta Corp., 805 F.2d 1498 (11th Cir.1986). Since this dispute involves interpretation of a provision of an ERISA benefit plan, ERISA preempts state contract law. Federal common law must be applied and, therefore, plaintiffs’ cause of action arises under federal law. Consequently, subject matter jurisdiction is proper pursuant to 28 U.S.C. § 1331, federal question, and plaintiffs’ motion for summary judgment will be considered.

III. SUMMARY JUDGMENT [5]

Summary judgment is appropriate where “there is no genuine issue as to any material fact” and “the moving party is entitled to judgment as a matter of law.” Fed.R. Civ.P. 56(c). The purpose of summary judgment is to determine whether a trial will be necessary. “The mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 2509, 91 L.Ed.2d 202 (1986) (emphasis in original). Conversely, when confronted with a motion for summary judgment, the party who bears the burden of proof on a particular issue must affirmatively demonstrate that there is a genuine issue of material fact.[*984] Mechnig v. Sears, Roebuck & Co., 864 F.2d 1359, 1363 (7th Cir.1988) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)). When presented with a motion for summary judgment, a court must examine the evidence in a light most favorable to the non-moving party and draw all reasonable inferences in that party’s favor. Bowyer v. United States Dept. of Air Force, 804 F.2d 428, 430 (7th Cir.1986).

The sole issue presented on summary judgment is the amount of reimbursement that defendant owes the Fund. Plaintiffs argue that defendant owes the Fund $69,322.61: $60,690.10 for medical payments and $8,632.51 for disability payments. Defendant admits owing $8,632.51 for disability payment since he recovered $55,000 for disability and disfigurement. On the amount of medical payments, however, defendant states that he recovered only $7,000, and plaintiffs are entitled only to that amount—not the $60,690.10 claimed. Therefore, defendant argues, plaintiffs are entitled to $15,632.51 less one-third for attorney fees, or a grand total of $10,421.67—the amount that defendant actually recovered for medical and disability expenses.

The Fund’s subrogation provision is set forth at Part II, Article IV, Section 7 of the relevant Fund documents. It reads, in pertinent part:

Upon any recovery made by an Employee ... from any person or persons, party or parties, insurance company, firm or corporation, whether by suit, judgment, settlement, compromise, or otherwise, the Trustees, with or without the filing of a lien as above permitted, shall be entitled to immediate reimbursement to the extent of benefits paid ... The Trustees shall be first reimbursed fully by such Employee, ... to the extent of benefits paid ... from the monies paid by any person or persons, party or parties, insurance company, firm or corporation and the balance of monies, if any, then remaining from such recovery shall be retained by the Employee_(empha-sis added)

Defendant argues that res judicata bars re-litigation of what portion of the verdict is for medical payments and, therefore, plaintiffs cannot re-litigate the $7,000 amount for medical payments. While this may be true, the amount that the jury awarded for medical payments need not be disturbed to settle this dispute. There is no reference in the subrogation provision that states that the monies recovered be for medical payments. Rather, the provision clearly and unambiguously reads: Upon any recovery. It does not read, as defendant argues, “upon any recovery of medical expenses.” Therefore, even if the jury apportioned 100% of the verdict for disfigurement, plaintiffs would still have a cause of action for complete reimbursement “to the extent of benefits paid.” [6]

Last, defendant argues that he did not “recover” one-third of the amount awarded by the jury verdict. One-third of the recovery went to his attorney under their fee arrangement. Generally, under the American Rule, a person bears the expenses of his own ease. See Mars Steel Corp. v. Continental Bank, N.A., 880 F.2d 928, 932 (7th Cir.1989) (reciting the rule, although interpreting a fee-shifting statute). In this case, however, defendant’s verdict benefits the Fund. Had defendant not engaged an attorney and pursued his case, the Fund would not have recovered any of the benefits paid concerning defendant’s knee surgery. Since the Fund benefits from defendant’s pursuit of his case, one-third reduction of the Fund’s share of[*985] the verdict fairly apportions the attorney’s fee. Plaintiffs acknowledge this fact in their motion papers. Therefore the reimbursement amount of $69,322.61 is reduced by one-third resulting in a total of $45,-752.92.

IT IS THEREFORE ORDERED that:

(1) Defendant’s motion to dismiss for lack of subject matter jurisdiction is denied.

(2) Plaintiffs’ motion for summary judgment is granted.

(3) Defendant’s motion to strike Larry Bushmaker's affidavit is denied.

(4) The Clerk of the Court is ordered to enter judgment in favor of plaintiffs and against defendant in the amount of $45,-752.92.

1

.The jury verdict was set forth as follows:

(A) The reasonable expense of necessary medical care, treatment and services received and the present cash value of the reasonable expense of medical care, treatment and service reasonably certain to be received in the future.|7,000
(B) The pain and suffering experienced and reasonably certain to be experienced in the future as a result of the injury. $56,000
(C) The disability and disfigurement resulting from the injury. ... $55,000
(D) The value of earnings lost from September 1, 1982 to July 15, 1983. $22,750 TOTAL.$140,750
2

. Defendant admits this obligation in Defendant’s Statement of Undisputed Material Facts, ¶ 2.

3

. Neither plaintiffs nor defendant supply a copy of this agreement with their motion papers. Defendant, however, concedes that his obligation exists under a subrogation agreement. See supra note 2.

4

. While both parties discuss a subsequent subro-gation "agreement" that defendant Nickla and his wife signed in October of 1986, as earlier noted, neither party included a copy of this agreement in their papers. This motion is decided on the papers before the court and if the "agreement” differs substantially from the “provision,” it is the parties' responsibility to inform this court.

5

. Defendant has also moved to strike Larry Bushmaker’s affidavit, which was submitted by plaintiffs in their summary judgment papers. To the extent that Larry Bushmaker’s affidavit is inadmissible, it is not considered in deciding this motion for summary judgment.

6

. Plaintiffs contend that their interpretation of the subrogation provision may be reviewed by this court only under an arbitrary and capricious standard. Defendant agrees with plaintiffs' standard, but adds that this court may review the decision also if it is motivated by bad faith. Both parties rely upon Firestone v. Bruch, 489 U.S. 101, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989). Under Firestone, the appropriate standard of review under ERISA cases arising from a denial of benefits is de novo unless the benefit plan grants the administrator discretionary authority to determine eligibility for benefits. This is not a case of appeal from a denial of benefits and, therefore, Firestone is inapplicable. It is noted, however, that plaintiffs interpretation of the subrogation provision is not arbitrary nor capricious.