Manage Liabilities

A car dealership in South Carolina continued to pay premiums for a terminated employee. The former employee incurred over $600,000 in medical insurance claims.

The insurance company sued the employer, alleging breach of contract and negligent misrepresentation under state common law. The district court granted the carrier’s motion to remand because Carolina Care was not a fiduciary under ERISA laws.

Because the carrier relied solely on the group administrator to maintain and provide information regarding eligibility of employees, it was not a fiduciary under ERISA. Thus the court remanded the case to state court to resolve the remaining issues.

(Carolina Health Plan, Inc. v. Auddie Brown Auto Sales of Florence, Inc.)