Justice Thomas Whelan
Plaintiffs moved for approval of an infant compromise order against XYZ and Coll defendants arising from a personal injury action where children were seriously injured. They also sought to direct XYZ to pay $23,437 in partial satisfaction of a $350,000 outstanding Medicaid lien of the Suffolk County Department of Social Services. Intervenor plaintiff Health Fund cross-moved for summary judgment seeking to recoup all benefits paid on behalf of the infant plaintiff under the terms of her father’s union welfare benefits plan under 29 USC 1132(a)(3). The court approved the proposed compromise of the claims against XYZ and Coll, finding the amount fair and reasonable. It also approved the negotiated partial settlement of the Medicaid lien ruling it would serve the best interests of the infant, but conditioned on the payment of the settlement proceeds to the supplemental needs trustee. Plaintiffs argued the fund’s welfare plan was not exempt from the reach of the state’s new anti-subrogation law. The court found the claims for reimbursement interposed by the fund fell within subsection (a)(3) putting exclusive jurisdiction in the U.S. courts. The court was without subject matter jurisdiction to determine the claims.
