Kasel v. Union Pacific Railroad Company

Summary

The Nebraska Supreme Court considered whether Union Pacific Railroad Company or its assignee, the Union Pacific Railroad Employes Health Systems, had a contractual lien or reimbursement right against John Kasel's settlement arising from injuries sustained while employed by Union Pacific. Interpreting the Challenger Health Plan, the court held that the plan excluded Union Pacific from the parties against whom subrogation or reimbursement could be asserted, and that the settlement released claims against Union Pacific as well as the motel. The court affirmed the order releasing the remaining interpleaded funds to Kasel.

Holdings

1. An assignee of contractual rights stands in the shoes of the assignor and is bound by the contract's terms to the same extent as the assignor; an assignment does not alter the contract.
2. Under the unambiguous terms of the Challenger Health Plan, Union Pacific did not have a lien or right of reimbursement against Kasel's settlement.
3. Strasburg did not establish that Union Pacific was entitled to a lien or right of reimbursement in this case.

Questions Presented

1. Whether the Challenger Health Plan gave UPREHS, and therefore its assignee Union Pacific, a lien or right of reimbursement against Kasel's settlement.
2. Whether Union Pacific was a liable party or beneficiary of the settlement such that the Plan's exclusion for claims against Union Pacific applied.

Disposition

affirmed