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Bauhaus USA, Inc. v. Copeland

ERISA does not authorize the plaintiff's suit seeking a declaratory judgment in the district court that it was entitled, under the terms of the plan, to funds resulting from a settlement between defendants and third-party tortfeasors.

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Appeal from the United States District Court for the Northern District of Mississippi

Plaintiff Bauhaus USA, Inc. (“Bauhaus”), appeals from the district court’s dismissal of its declaratory judgment action to enforce the terms of an employee benefit plan against defendants Lillie Regina Holmes Copeland and her daughter Reshan Holmes. Bauhaus sought a declaratory judgment in the district court that it was entitled, under the terms of the plan, to funds resulting from a settlement between defendants and third-party tortfeasors. The defendants moved to dismiss the case, arguing that the Employee Retirement Income Security Act of 1974 (“ERISA”)*fn1 does not preempt Mississippi’s anti-assignment rule. The district court granted the defendants’ motion. Because we conclude that ERISA does not authorize Bauhaus’ declaratory judgment action, we do not reach the preemption question.

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