- 11 U.S.C.
In re Tobis
Apr
11
2007
Ruling
ERISA welfare benefit plan that did not involve beneficial interest in trust was property of the estate.
Procedural posture
An insurer cancelled debtors'medical coverage. Debtors sued in state court for bad faith, breach of contract, and unjust enrichment. The state court found that debtors'claims were for the recovery of a plan benefit under the Employee Retirement Income Security Act ("ERISA"). The chapter 7 trustee moved to compromise debtors' claims (the motion was subsequently withdrawn). Debtors moved to dismiss/and or bar the trustee from state action.
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Court
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