An insurer can pursue a claim for restitution of overpaid short-term disability benefits as an equitable remedy under the Employee Retirement Income Security Act, the U.S. Court of Appeals for the Second Circuit ruled yesterday.
Addressing an open question in the circuit, the court said that Aetna Life Insurance Company’s counterclaim to recover disability benefits paid to an employee who also had recovered no-fault insurance money from a car accident constitutes “appropriate equitable relief” under ERISA, 29 U.S.C. §1132(a)(3).
