The court found that Sun Life failed to sufficiently allege that the particular funds to which it claims an entitlement to under the Plan’s reimbursement provision are funds belonging in good conscience to Sun Life and can clearly be traced to particular funds in plaintiff’s possession or control. Therefore the court could not impose a constructive trust or equitable lien on such funds. In this case, the district court held that the claim for reimbursement did not adequately allege equitable relief.

Sun Life’s counterclaim does not indicate whether the kind of relief it seeks is equitable meaning that the imposition of a constructive trust or equitable lien on particular funds within the possession or control of plaintiff – or legal – the imposition of personal liability on plaintiff for a contractual obligation to pay $ 47,683.12. The complaint must allege that the plaintiff seeks equitable relief and set forth the facts supporting the claim.

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This entry was posted by Adam V. Russo on Wednesday, June 10th, 2009 at 7:47 am and is filed under 9th, Subrogation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.