October Term 2012 · Docket 11-1285

Can an ERISA plan recover full medical costs from a third-party settlement?

US Airways seeks full reimbursement from a settlement. McCutchen argues equity limits the recovery.

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US Airways, Inc. v. McCutchen
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Verified source milestones

  1. — An official oral-argument transcript was verified.
  2. — An official oral-argument transcript was verified.

The arguments, in order

This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.

  1. Argument 1 ·

    What happened at the argument

    Mr. Katyal argued ERISA allows plans to seek equitable relief to enforce terms.

    Mr. Wessler argued subrogation claims are governed by equitable principles.

    Mr. Palmore argued Section 502(a)(3) invokes the equitable powers of district courts.

    Read the official transcript for this argument · Official argument details

    Sources used for this argument breakdown

A citizen's guide to the whole case

What this case is about

The dispute centers on whether equitable principles limit a health plan's right to recover costs from a third-party settlement.

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How the case got here

The Supreme Court heard oral argument in this case on November 27, 2012.

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What each side wants

US Airways wants full reimbursement of medical costs from the settlement.

McCutchen wants the plan's recovery limited by equitable principles.

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What each side says

US Airways argues ERISA permits fiduciaries to seek equitable relief to enforce plan terms.

McCutchen argues reimbursement claims based on subrogation are subject to equitable principles.

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What the justices asked

Justice Sotomayor asked why the plan is not bound by equity if it seeks equitable relief.

Justice Scalia questioned whether the Court reviewed the specific plan language or general law.

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Why it matters

This case determines how much a health plan recovers from a third-party settlement. It affects the financial balance between injured workers and their insurers.

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What happens next

This article currently covers the argument record. Use the official docket link for later case activity.

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Official Court provenance

Official docket and case history · Official Supreme Court oral-argument detail page

Title and summary sources

Revision history

  1. Revision 1 · Official Transcript ·

    Correction: Rewritten to the concise citizen-facing editorial standard.

  2. Revision 2 · Official Transcript ·

    Correction: Migrated to the dated official Court activity contract without model use.

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