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HI-LEX CONTROLS, INC. v. BLUE CROSS BLUE SHIELD

Nos. 13-1773, 13-1859.

751 F.3d 740 (2014)

HI-LEX CONTROLS, INC., Hi-Lex America, Inc., and Hi-Lex Corporation Health and Welfare Benefit Plan, Plaintiffs-Appellees/Cross-Appellants, v. BLUE CROSS BLUE SHIELD OF MICHIGAN, Defendant-Appellant/Cross-Appellee.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: May 14, 2014.

Attorney(s) appearing for the Case

ARGUED: Robin Springberg Parry , United States Department of Labor, Washington, D.C., for Amicus Curiae. James J. Walsh , Bodman PLC, Ann Arbor, Michigan, for Appellant/Cross-Appellee. Perrin Rynders , Varnum, Grand Rapids, Michigan, for Appellees/Cross-Appellants. ON BRIEF: James J. Walsh , G. Christopher, Bernard , Rebecca D'Arcy O'Reilly , Bodman PLC, Ann Arbor, Michigan, for Appellant/Cross-Appellee. Perrin Rynders , Aaron M. Phelps , Stephen F. MacGuidwin , Varnum, Grand Rapids, Michigan, for Appellees/Cross-Appellants. Robin Springberg Parry , United States Department of Labor, Washington, D.C., Ronald S. Lederman , Gerard J. Andree , Sullivan, Ward, Asher & Patton, P.C., Southfield, Michigan, for Amici Curiae.

BEFORE: KEITH, SILER, and ROGERS, Circuit Judges.

OPINION

SILER, Circuit Judge.

The Hi-Lex corporation, on behalf of itself and the Hi-Lex Health & Welfare Plan, filed suit in 2011 alleging that Blue Cross Blue Shield of Michigan (BCBSM) breached its fiduciary duty under the Employee Retirement Income Security Act of 1974 (ERISA) by inflating hospital claims with hidden surcharges in order to retain additional administrative compensation. The district court granted summary judgment to Hi-Lex on the...

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