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Court Affirms Decision That Insurance Company Has No Remedy Under ERISA

The Seventh Circuit held that AIG's reimbursement claim for wrongly paid benefits was "legal" in nature and AIG is only afforded remedies under ERISA that are "equitable" in nature. The Court went on to admonish AIG for failing to characterize its counterclaim for reimbursement as compulsory or invoke the Court's supplemental jurisdiction.