In Re: Guardianship of Holmes v. Copeland
| Docket Number: | 2006-CA-00465-SCT | |
| Supreme Court: | Opinion Link Opinion Date: 09-27-2007 Opinion Author: GRAVES, J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Subrogation claim - Minor’s rights to insurance proceeds - ERISA - Preemption Judge(s) Concurring: SMITH, C.J., WALLER AND DIAZ, P.JJ., CARLSON, DICKINSON, RANDOLPH AND LAMAR, JJ. Concurs in Result Only: EASLEY, J. Procedural History: Summary Judgment Nature of the Case: CIVIL - OTHER |
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| Trial Court: |
Date of Trial Judgment: 03-07-2006 Appealed from: LEE COUNTY CHANCERY COURT Judge: Talmadge Littlejohn Disposition: Denied Appellant's Motion for Summary Judgment Case Number: 97-0364 |
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| Party Name: | Attorney Name: | |||
| Appellant: | IN RE: GUARDIANSHIP OF RESHAN DANIELLE
HOLMES, A MINOR: BAUHAUS USA, INC. |
THOMAS H. LAWRENCE
POLLY MONTGOMERY HALEY
C. R. MONTGOMERY |
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| Appellee: | LILLIE REGINA HOLMES COPELAND, NATURAL GUARDIAN AND NEXT FRIEND OF RESHAN DANIELLE HOLMES, A MINOR, BANCORPSOUTH BANK AND BILL BENSON, CHANCERY CLERK | ROY O. PARKER, JR LES ALVIS GARY L. CARNATHAN |
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| Topic: | Subrogation claim - Minor’s rights to insurance proceeds - ERISA - Preemption |
| Summary of the Facts: | Rashan Holmes, a minor, was injured in an automobile accident. Holmes was covered under the Bauhaus Group Employee Benefit Plan as a dependent of her mother and guardian, Lillie Holmes Copeland. The Plan advanced payments for Holmes’ medical expenses of more than $46,000. Copeland, on behalf of Holmes, filed suit against third-party tortfeasors and subsequently entered into a settlement agreement for $750,000. Bauhaus asserted a subrogation lien on the advance payments of medical benefits to Holmes. Copeland filed a Petition for Authority to Settle Doubtful Claim of Minor, requesting approval of the final settlement offer. Copeland asked the court to find the subrogation claim invalid since Holmes was not made whole by the settlement. The chancery court approved the final settlement and released the tortfeasors but left the disputed amount of $78,161.47 in the court registry. Bauhaus filed a motion for summary judgment which the court denied. The chancery court granted Copeland’s petition to settle doubtful claim and ordered disbursement to Holmes of the funds held in the registry. Bauhaus appeals. |
| Summary of Opinion Analysis: | The deciding issue in this case is whether ERISA pre-empts the right of the state court with regard to assigning a minor’s rights to insurance proceeds. This issue has previously been addressed in Cooper Tire & Rubber Co. v. Striplin, 652 So. 2d 1102 (1995), which held that ERISA does not pre-empt state law requiring court approval for contracts affecting a minor’s estate with regard to subrogation rights of the ERISA plan to insurance proceeds due to the child. Compliance with both federal and state regulations is not a physical impossibility. Mississippi law does not absolutely prohibit assignment, but requires prior chancery approval. Family law is an area traditionally regulated by the states. There is a presumption against pre-emption. Although ERISA does state its intent to pre-empt state law by positive enactment, there is no clear intention of Congress to pre-empt cases dealing with minors’ rights. Moreover, there is no damage to any clear and substantial federal interest. |
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