NGS
American, Inc. v. Jefferson, 218 F.3d 519 (6th Cir. 2000); 2000 FED
App. 0216P (6th Cir.)-In
response to Jefferson's suit for wrongful death and medical malpractice in
influencing the health care providers' treatment of his wife, NGS American, a
third-party health plan administrator, filed suit against Jefferson in a
Michigan (rather than Florida) federal court, seeking a declaratory judgment
that ERISA would preempt Jefferson’s state-court claims.
Jefferson successfully challenged personal jurisdiction, and this court affirmed the district court's decision. Although this court agreed that ERISA does provide for nationwide service of process based on contacts with the United States, it objected to NGS's tactics. Fiduciaries generally do not sue beneficiaries for ERISA violations, particularly not in a distant forum. This court observed: "NGS can defend itself on ERISA preemption grounds in state court, or seek removal to federal district court in Florida. It has no need to resort to peremptory measures in another federal court to protect its preemption rights."