Summary
The Seventh Circuit dismissed as moot an appeal arising from a dispute over a Medicare set-aside in a workers’ compensation settlement. During the litigation, HHS approved the set-aside amount and the defendants provided a replacement check, satisfying the nonmonetary relief Coryell sought from the remaining defendants. The court therefore concluded that Coryell could obtain no additional relief on appeal.
Topics
Practice areas
Questions Presented
- Whether the appeal was moot after Coryell received the replacement check and HHS approved the Medicare set-aside.
- Whether the district court correctly dismissed Coryell's Medicare Secondary Payer Act claims for lack of a prior agency decision and/or lack of a cognizable injury.
Holdings
- The appeal was moot because Coryell had received the replacement check and HHS assurance that the $8,091 set-aside adequately protected Medicare's interests, leaving him with no further relief to obtain from Sears, Liberty Mutual, or HHS.
Key quotations
“All of the relief demanded from them was obtained in the district court; thus, Coryell stands to gain nothing more from this appeal.” (660)
“Accordingly, the appeal is moot and is DISMISSED.” (660)
Factual background
Coryell suffered an on-the-job injury while working for Sears and accepted a workers' compensation settlement of $41,006 from Sears and Liberty Mutual. The settlement allocated $8,091 for future injury-related medical expenses because Coryell was a Medicare beneficiary. Coryell sued after the parties finalized the settlement without obtaining advance HHS approval and after he claimed that the original settlement check could not be deposited into a Medicare trust account because it omitted the word "trustee" from the payee line. During the litigation, HHS approved the $8,091 set-aside and Coryell received a replacement check.
Procedural history
Coryell filed suit in federal district court against Sears, Liberty Mutual, HHS, and others concerning a Medicare set-aside arising from a workers' compensation settlement. The district court dismissed the complaint, reasoning that the claims arose under the Medicare Act and could not be adjudicated without a prior agency decision, and also questioning whether Coryell had suffered a cognizable injury. While the case was pending, HHS approved the set-aside and Coryell received a replacement check. The Seventh Circuit dismissed the appeal as moot and granted the stipulated dismissal of the claims against Coryell's former lawyer and law firm.