Second Circuit Overturns District Court in Wurtz v. Rawlings

  • Blog
  • August 13th, 2014

A recent decision handed down by the U.S. Court of Appeals for the Second Circuit court has overturned the Federal Court for the Eastern District of New York's opinion and affirmed the application of NY General Obligations Law §5-335 as a law that regulates insurance.

 Although §5-335 was recently amended to specifically apply to insurance, the Second Circuit confirms what we knew all along: insured ERISA plans do not get the benefit of federal preemption, and therefore §5-335 applies to negate any subrogation and/or reimbursement claims by insured plans.

Please take a moment to review Professor Roger Baron's comments on the decision, provided below.

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Second Circuit Overturns District Court in Wurtz v. Rawlings
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