| Cruz
v. Blue Cross Blue Shield of Illinois, 00 CH 14182 (Cir.
Ct. Cook County, Illinois, Chancery Div.) and Blue Cross
Blue Shield of Illinois v. Cruz, 01 C 9821 (N.D. Ill):
United State Supreme Court rules in Plaintiff's Favor;
State Court Grant's Plaintiff Summary Judgment and Certifies
A Class
This dual-tracked state
court and federal court litigation began with our client
filing claims against Blue Cross in state court, asserting
that Blue Cross fails to adequately reduce their reimbursement
liens, asserted against its insureds, by a fair share
of attorneys fees that its insureds incur in obtaining
third-party recoveries. In an attempt to seek a more
favorable forum, Blue Cross removed Cruz's state action
to federal court, which was ultimately unsuccessful
when the federal court ruled that the claims are grounded
in state, not federal law. Shortly thereafter, Blue
Cross sued Cruz in federal court in an effort to challenge
the state court's jurisdiction over this matter. Plaintiff
was successful in dismissing Blue Cross's federal action,
but on appeal Blue Cross prevailed before the Seventh
Circuit Court of Appeals. Plaintiff thereafter sought
U.S. Supreme Court review of Blue Cross's victory and
was ultimately granted review, along with a related
action in the Second Circuit (whose ruling created a
split with the Seventh Circuit's decision). Acting as
amicus in the Second Circuit case, Plaintiff was instrumental
in persuading the U.S. Supreme Court to rule in Cruz's
favor and reverse the Seventh Circuit's ruling. A copy
of the U.S. Supreme Court decision is provided here.
Prior to the Supreme Court's decision, the state court,
the Honorable Peter J. Flynn, granted judgment in favor
of Cruz on her individual claim, holding that Blue Cross
is required to reduce its reimbursement liens pursuant
to Illinois' common fund doctrine (which requires beneficiaries
of a common fund, as Blue Cross is in these situations,
to share in the costs incurred in creating that fund).
That decision is also provided here. Judge Flynn later
certified a class of all persons against whom Blue Cross
Blue Shield of Illinois asserted a reimbursement lien
without reduction for Blue Cross's share of attorneys
fees that the insured incurred in obtaining recoveries
against tortfeasors. A copy of that decision is also
provided here.
 2-25-05
Order Granting Cruz Judgment
7-13-05
Order Granting Class Certification
BCBS
SC Decision
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