Kress v. Food Employers Labor Relations Ass'n

**What Happened** Kress, an employee covered by a health and welfare fund, was injured and sought accident and sickness benefits. The fund required both Kress and his attorney to sign a "subrogation agreement" before paying benefits. This agreement would allow the fund to recover money if Kress later received a settlement or court award for his injuries. Kress refused to have his attorney sign the agreement and sued, claiming the fund violated his contract by withholding benefits. **What the Court Decided** The Fourth Circuit Court of Appeals ruled in favor of the fund. The court found that the plan documents clearly stated that both the injured worker and their attorney must sign the subrogation agreement to receive benefits. Since the plan language was unambiguous and federal law (ERISA) doesn't prohibit such requirements, the fund was within its rights to withhold benefits until both signatures were provided. **What This Means for Workers** This ruling shows that employer-sponsored benefit plans can require workers and their lawyers to agree to repay benefits from future lawsuit settlements. Workers should carefully read their benefit plan documents to understand what conditions may be attached to receiving payments, especially for injury-related claims.