Opinion ID: 752882
Heading Depth: 3
Heading Rank: 1

Heading: The amount actually paid under the Plan, or

Text: 6 2. The amount actually recovered from that part of the judgment or settlement in excess of the amount necessary to fully reimburse the Employee or dependent for out-of pocket expenses incurred, including attorney fees. 7 Initially, the district court reduced HCC's reimbursement claim from $145,000 to about $86,500, holding that the Plan must bear a proportional share of the legal expenses that Isbell incurred. The district court reasoned that without Isbell's legal expenses the Plan would not have been reimbursed at all and that it was only fair that the Plan share in the costs. On rehearing, however, the district court reversed itself and did not apportion the attorney's fees because the Plan did not specifically provide for it. The district court relied upon Ryan by Capria-Ryan v. Federal Express Corp., 78 F.3d 123, 127-28 (3rd Cir.1996), where plan participants incurred legal expenses in prosecuting medical malpractice claims and attempted to reduce their reimbursement obligation under the subrogation provision of their plan. The participants argued that the benefit plan would be unjustly enriched by their efforts if there were no pro rata offsets from the reimbursement to reflect their legal expenses. The Ryan court held that an ERISA plan participant could not offset for attorney's fees where the plan unambiguously required full reimbursement. Isbell appealed.