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Bankruptcy: Disability Benefits – Recoupment Of Overpayment – Equities Test
Stephanie Maniscalco//August 9, 2012
Bankruptcy: Disability Benefits – Recoupment Of Overpayment – Equities Test
Stephanie Maniscalco//August 9, 2012
Where a long-term disability insurance provider sought to recoup retroactive Social Security benefits from a Chapter 7 debtor’s bank account, the bankruptcy appellate panel erred by introducing a separate balancing-of-the-equities test into the doctrine of recoupment once the provider met the same-transaction test, so the judgment preventing the provider from recouping the funds is reversed.
Judgment is reversed and remanded.
Terry v. Standard Insurance Company (MLW No. 64012/Case No. 11-2582 – 7 pages) (U.S. Court of Appeals, 8th Circuit, Benton, J.) Appealed from U.S. Bankruptcy Court, Western District of Missouri, Venters, J. ( David D. Farrell, St. Louis, argued for appellant) (Victor Felix Weber, Kansas City, Missouri, argued for appellee; James Kevin Checkett appeared on the brief).
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