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In a huge win for lawyers representing children injured in auto accidents, a federal judge has ruled that an ERISA insurer has no right to enforcement of a lien for medical expenses when the minor’s settlement funds are placed in a “special-needs trust.”

In his nine-page opinion in Mills v. London Grove Township, Senior U.S. District Judge John P. Fullam held that since the child’s father is the ERISA beneficiary, any lien from the insurer, ACS Recovery Services, would not “come into existence” until the father received funds.

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