Law Firm Wins One-of-a-Kind Case: PARENT WITH CUSTODY MUST PAY $1M MEDICAL LIABILITY

KC Law Firm Wins One-of-a-Kind Case
PARENT WITH CUSTODY MUST PAY $1M MEDICAL LIABILITY


Kansas City, MO-Attorney Dennis Palmer helped a mother and an insurance provider avoid liability of more than $1,000,000.00. Federal Judge Fernando Gaitan Jr, in the Western District of Missouri awarded summary judgement in an ERISA case involving medical insurance, divorced parents and a child with a fatal illness.

Shughart Thomson & Kilroy attorney Dennis Palmer stated, “It is gratifying to help our client Blue Cross Blue Shield of Texas. We are very happy with this result. In awarding summary judgment in a case involving the interpretation of coordination of benefit provisions in health care plans, the judge agreed that the divorced father’s group health care plan and not the mother’s was responsible to pay the health care expenses of the child.”

The case is unique because the child lived with his mother for many years. She was providing support and care for him at the time of his illness and declared the child as her dependent on her tax return. But the father had legal custody according to the Divorce Decree. The mother and father lived in Texas where he worked for Butler Manufacturing, headquartered in Kansas City. The child had a terminal illness and incurred medical expenses totaling more than $1,000,000.00.

The crux of the case centered around the definition of the phrase “parent with custody.” Judge Gaitan wrote, “The Divorce Decree granted custody to Michael Richardson. The provision of health care coverage is one of the duties of a parent. Although the parties may have agreed among themselves to a different living arrangement for their son, the Divorce Decree was never officially modified. Thus the Butler plan is primarily responsible for the child’s bills.”

Palmer says there have been no other reported cases like this involving the living arrangements of the child of divorced parents with each side claiming the other parent’s insurance was responsible. Attorneys Greg Bentz, Monica Fanning, Matt Lytle and paralegal Mary Beth Siernek also worked on the case.

About Shughart Thomson & Kilroy, P.C.
Founded in 1940, the Kansas City-headquartered law firm of Shughart Thomson & Kilroy, P.C. (www.stklaw.com), is a full-service, client-focused business law firm with more than 170 attorneys in six offices: Kansas City, Springfield and St. Joseph, Mo.; Overland Park, Kan.; Phoenix, Ariz., and Denver, Colo. Serving corporate, institutional and individual clients



Original release date: Wednesday, December 06, 2006
Contact: Heather McMichael
816-395-0618
hmcmichael@stklaw.com

Author: John (Jack) Kilroy, Jr.
Firm: Shughart Thomson & Kilroy, P.C.

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