Central States v. William T. Pope Claims $924,585.11 in unreimbursed medical expenses
The Central States, Southeast and Southwest Areas Health and Welfare Fund and its trustee, Charles A. Whobrey, filed suit against William T. Pope, Jr., his attorney Crystal H. Swinford, and her firm Donnie Gamache, Attorney at Law, LLC, seeking to enforce a $924,585.11 subrogation lien on settlement proceeds from Pope’s motorcycle accident. The complaint alleges the Fund paid $924,585.11 in medical expenses for Pope’s injuries sustained on March 26, 2023, covering services provided through December 3, 2024, and that the Plan’s terms entitle it to full reimbursement from any settlement or judgment Pope received from third parties responsible for the accident. Under Count V (Breach of Fiduciary Duty), the Fund also seeks $924,585.11 (plus interest) for alleged violations of ERISA § 502(a)(2) (29 U.S.C. § 1132(a)(2)) and § 409 (29 U.S.C. § 1109). The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from 03/26/2023 to 12/03/2024, during which Pope received medical services for his injuries, as detailed in the complaint (Compl. ¶26).
The Fund seeks imposition of an equitable lien and constructive trust on the settlement proceeds, reimbursement of the full $924,585.11 (plus interest), and injunctive relief preventing Defendants from disposing of funds held in constructive trust until the lien is satisfied. The complaint states that the Fund’s entitlement to reimbursement is governed by Plan § 11.14, which establishes the Fund’s subrogation rights and equitable lien. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from March 26, 2023, through December 3, 2024, as detailed in the complaint (Compl. ¶26).
Mechanism of the Fund’s Subrogation Lien and Alleged Violations
The complaint alleges that the Central States, Southeast and Southwest Areas Health and Welfare Fund (the “Fund”) paid $924,585.11 in medical expenses for injuries William T. Pope, Jr. sustained in a March 26, 2023 motorcycle accident. Under the terms of the ERISA-governed Plan, the Fund is “immediately subrogated and vested with subrogation rights” whenever it makes any payment for benefits on behalf of a covered individual, and the Plan’s reimbursement entitlement is “absolute and unqualified.” The complaint states, “The Fund’s entitlement to full payment and reimbursement of its Subrogation Rights is absolute and unqualified...” (Compl. ¶22). The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, spanned from March 26, 2023, to December 3, 2024, covering a range of medical services related to his injuries (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The Plan’s subrogation provisions, including Plan § 11.14, automatically assign recovery rights to the Fund and require covered individuals and their attorneys to reimburse the full amount of the Fund’s subrogation claim. The complaint states that “said payment by the Fund on behalf of a Covered Individual shall be deemed to constitute the Covered Individual’s direction to his/her attorneys... to reimburse the full amount of the Fund’s Subrogation Rights,” (Compl. ¶15) and that “no Covered Individual... is authorized to act on behalf of the Fund with respect to the Fund’s Subrogation Rights,” (Compl. ¶16). The Fund’s subrogation rights include an immediate assignment of recovery rights to the Fund, as outlined in the Plan’s terms (Compl. ¶12-23).
After the Fund asserted a $924,585.11 subrogation lien against potential settlement proceeds, Pope, represented by attorney Crystal H. Swinford and Donnie Gamache, Attorney at Law, LLC, settled his claims for at least $100,000.00. The complaint alleges that neither Pope, Swinford, nor the Law Firm reimbursed the Fund for the $924,585.11 lien, despite the Fund’s demand for payment. The Fund’s lien assertion, settlement, and reimbursement demand occurred on unspecified dates following the payment period for medical expenses, which spanned from March 26, 2023, to December 3, 2024, during which the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The complaint further alleges that Swinford and the Law Firm violated the South Carolina Rules of Professional Conduct by failing to safeguard the Fund’s subrogation rights. The rules require that “a lawyer shall hold property of clients or third persons that is in a lawyer’s possession in connection with a representation separate from the lawyer’s own property,” (Compl. ¶34) and that “upon receiving funds or other property in which a client or third person has an interest, a lawyer shall promptly notify the client or third person.” (Compl. ¶35). The rules also state that “the property shall be kept separate by the lawyer until the dispute is resolved.” (Compl. ¶36). The complaint alleges that Swinford and the Law Firm may have distributed settlement proceeds to themselves or Pope in violation of these rules and the Plan’s terms, including Plan § 11.14(d).
Parties and Their Roles in the Dispute
The complaint names two plaintiffs: the Central States, Southeast and Southwest Areas Health and Welfare Fund, an ERISA-governed plan, and Charles A. Whobrey, its trustee. The Fund is funded exclusively by employer contributions under collective bargaining agreements for the purpose of providing health and welfare benefits to covered individuals, including medical expense reimbursement (Compl. ¶5). The Fund’s payments for William T. Pope’s medical expenses, totaling $924,585.11, were made from March 26, 2023, through December 3, 2024, as part of its obligations under the Plan (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Three defendants are named. William T. Pope, Jr. is the injured plan participant whose medical expenses triggered the Fund’s subrogation claim. Crystal H. Swinford, Esq. is Pope’s attorney, who represented him in claims arising from the accident. Donnie Gamache, Attorney at Law, LLC is the law firm holding at least $100,000 in settlement proceeds from those claims. A non-party, William T. Pope, is identified as the covered individual under the Plan whose medical expenses the Fund paid from March 26, 2023, through December 3, 2024, totaling $924,585.11 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The Fund’s complaint alleges that Swinford and the Law Firm, as attorneys holding third-party property, were obligated under South Carolina’s Rules of Professional Conduct to safeguard the Fund’s subrogation rights and to segregate disputed funds until the lien was satisfied. The complaint further alleges that Defendants breached fiduciary duties under ERISA by refusing to reimburse the Fund and by holding settlement proceeds subject to the Fund’s equitable lien, as stated: “the Defendants may not dispose of assets subject to that lien or violate fiduciary duties relating to those assets.” (Compl. ¶43). The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024, as outlined in the complaint (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Financial Figures: Medical Expenses, Lien, and Settlement
The complaint alleges that the Central States, Southeast and Southwest Areas Health and Welfare Fund paid $924,585.11 in medical expenses for injuries sustained by William T. Pope, Jr. in a March 26, 2023 motorcycle accident. According to the filing, the Fund’s payments covered medical services provided to Pope from the date of the accident through December 3, 2024 (Compl. ¶26). The complaint specifies that during this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The Fund asserts it holds an equitable lien of $924,585.11 against any settlement or judgment Pope received from third parties responsible for his injuries, a right the complaint describes as "absolute and unqualified" under the Plan’s terms. The complaint states, "the Fund has established an equitable lien in the specifically identifiable amount of $924,585.11 against Swinford and the Law Firm," (Compl. ¶41) referring to attorney Crystal H. Swinford and her firm, Donnie Gamache, Attorney at Law, LLC. This lien is based on Plan § 11.14, which governs the Fund’s subrogation rights and equitable lien.
Despite the Fund’s demand for reimbursement, the complaint alleges no portion of the $924,585.11 has been paid by Pope, Swinford, or the Law Firm. The Fund seeks recovery of the full $924,585.11, plus interest, from the defendants. Under Count V (Breach of Fiduciary Duty), the Fund also seeks $924,585.11 (plus interest) for alleged violations of ERISA § 502(a)(2) and § 409, claiming that Defendants breached their fiduciary duties by refusing to reimburse the Fund and by holding assets subject to the Fund’s lien (Compl. ¶51). The complaint alleges that the Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The complaint further alleges that Pope and Swinford settled Pope’s claims for "at least $100,000.00," with the proceeds allegedly held by Swinford and the Law Firm. The Fund contends these settlement proceeds are subject to its $924,585.11 lien and must be held in constructive trust until the Fund’s claim is satisfied. The complaint states, “the Defendants may not dispose of assets subject to that lien or violate fiduciary duties relating to those assets.” (Compl. ¶43). The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from March 26, 2023, through December 3, 2024, as detailed in the complaint (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Counts I and II: Breach of ERISA Plan Terms and Equitable Relief for Subrogation
The complaint alleges that Defendants William T. Pope, Jr., Crystal H. Swinford, and Donnie Gamache, Attorney at Law, LLC breached the terms of the Central States, Southeast and Southwest Areas Health and Welfare Fund’s ERISA-governed Plan. Under Count I, the Fund seeks enforcement of its subrogation rights, reimbursement of the full $924,585.11 (plus interest), and attorneys’ fees and costs. The Fund contends that the Plan’s terms create an "absolute and unqualified" entitlement to reimbursement for medical expenses paid on behalf of covered individuals. "No Covered Individual... is authorized to act on behalf of the Fund with respect to the Fund’s Subrogation Rights," the Plan states (Compl. ¶16). The Fund’s subrogation rights include an immediate assignment of recovery rights to the Fund, as outlined in the Plan’s provisions (Compl. ¶12-23). The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024, as specified in the complaint (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Count II seeks equitable relief under 29 U.S.C. § 1132(a)(3) to enforce the Fund’s subrogation rights, including the imposition of an equitable lien and constructive trust on settlement proceeds held by Defendants. The complaint alleges that Defendants possess a "specifically identifiable fund of at least $100,000.00" derived from Pope’s settlement, which is subject to the Fund’s $924,585.11 lien. The Fund asserts it "has established an equitable lien in the specifically identifiable amount of $924,585.11 against Swinford and the Law Firm" (Compl. ¶41) under Plan § 11.14, and that the settlement proceeds must be held in constructive trust to satisfy that lien. The Fund seeks an injunction preventing Defendants from distributing or disposing of the settlement proceeds until the $924,585.11 lien, plus interest, fees, and costs, is satisfied. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from March 26, 2023, through December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The complaint alleges that Defendants’ failure to reimburse the Fund for the $924,585.11 in medical expenses constitutes a violation of the Plan’s subrogation provisions, which the Fund describes as creating an "immediate" and "absolute" right to recovery. The Fund quotes the Plan’s language to support its claim: "The Fund, whenever it makes any payment for any benefits on behalf of a Covered Individual... is immediately subrogated and vested with subrogation rights." (Compl. ¶13). The complaint further alleges that the Plan deems such payments to constitute the covered individual’s direction to their attorneys to reimburse the Fund in full, a requirement the Fund contends Defendants ignored. The Fund’s entitlement to reimbursement is described as "absolute and unqualified," (Compl. ¶22) and the complaint states that the Fund’s subrogation rights include an immediate assignment of recovery rights to the Fund (Compl. ¶12-23). The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Counts III, IV, and V: Equitable Lien, Plan Enforcement, and Breach of Fiduciary Duty
The complaint seeks to impose an equitable lien and constructive trust on settlement proceeds held by defendants William T. Pope, Jr., Crystal H. Swinford, and Donnie Gamache, Attorney at Law, LLC, to secure the Fund’s $924,585.11 subrogation claim. Under Count III, the Fund alleges that the settlement proceeds—totaling at least $100,000.00—are subject to a constructive trust in the amount of the Fund’s lien, and that defendants are obligated to hold those funds for the Fund’s benefit. The complaint states, “the Fund has established an equitable lien in the specifically identifiable amount of $924,585.11 against Swinford and the Law Firm,” (Compl. ¶41) under Plan § 11.14. It further asserts that “settlement proceeds subject to the Fund’s lien must be held in constructive trust for the Fund.” The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024, as detailed in the complaint (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Count IV seeks enforcement of the Plan’s subrogation provisions and an injunction preventing defendants from violating the Fund’s rights. The complaint alleges that defendants possess a “specifically identifiable fund of at least $100,000.00” and that the Fund’s equitable lien attaches to those proceeds. The Fund requests an order enjoining defendants from disposing of $924,585.11 (plus interest) in settlement funds and imposing an equitable lien and constructive trust on that amount. The plaintiffs also request retention of jurisdiction, attorneys’ fees and costs, and further relief. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from March 26, 2023, through December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Count V alleges that defendants breached fiduciary duties under ERISA § 502(a)(2) (29 U.S.C. § 1132(a)(2)) and § 409 (29 U.S.C. § 1109). The complaint contends that defendants “stand in a fiduciary relationship to the Fund regarding lien/trust assets” (Compl. ¶43) and that they “may not dispose of assets subject to that lien or violate fiduciary duties relating to those assets.” It further alleges that defendants “have breached their fiduciary duties and are liable to the Fund for that breach under Section 409 of ERISA,” (Compl. ¶51) by refusing to reimburse the Fund for the $924,585.11 in medical expenses paid on behalf of William T. Pope, the covered individual. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26). The Fund seeks $924,585.11 (plus interest) in reimbursement and injunctive relief under this count, including retention of jurisdiction until the Fund’s claim, fees, and costs are satisfied.
Relief Sought and Procedural Posture
The complaint seeks comprehensive equitable and monetary relief across five counts, each targeting the $924,585.11 in medical expenses the Fund alleges it is owed under its subrogation rights. For Count I, the plaintiffs demand enforcement of the Fund’s subrogation rights under the Plan, reimbursement of the full $924,585.11 (plus interest), attorneys’ fees and costs, and "further or different relief as deemed proper." The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024, as specified in the complaint (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
In Count II, the plaintiffs request the imposition of an equitable lien and constructive trust on the settlement proceeds to the extent of the Fund’s $924,585.11 lien (plus interest). The complaint further seeks an injunction preventing Defendants from disposing of funds held in constructive trust until the Fund’s lien, fees, and costs are satisfied, along with retention of jurisdiction to enforce these equitable remedies. The plaintiffs also demand attorneys’ fees and costs. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from March 26, 2023, through December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Count III mirrors the relief sought in Count II, specifically requesting the imposition of an equitable lien and constructive trust on the $924,585.11 (plus interest) in settlement proceeds. The plaintiffs again seek an injunction to prevent disposition of these funds, retention of jurisdiction, attorneys’ fees and costs, and "further or different relief as deemed proper." The complaint asserts that Defendants hold these proceeds subject to the Fund’s equitable lien, as stated: "the Fund has established an equitable lien in the specifically identifiable amount of $924,585.11 against Swinford and the Law Firm," (Compl. ¶41) under Plan § 11.14. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
For Count IV, the plaintiffs demand an order enforcing the Plan and enjoining Defendants from violating the Fund’s subrogation rights. The complaint seeks reimbursement of the $924,585.11 (plus interest) from settlement funds, an injunction preventing Defendants from disposing of these funds, and the imposition of an equitable lien and constructive trust on the same amount. The plaintiffs also request retention of jurisdiction, attorneys’ fees and costs, and further relief. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services rendered from March 26, 2023, through December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
Count V alleges that defendants breached fiduciary duties under ERISA § 409. The plaintiffs seek an injunction requiring Defendants to reimburse the $924,585.11 (plus interest), attorneys’ fees and costs, and retention of jurisdiction until the Fund’s claims are satisfied. The complaint alleges that Defendants, as constructive trustees of the settlement proceeds, breached their fiduciary duties, as stated: "the Defendants have breached their fiduciary duties and are liable to the Fund for that breach under Section 409 of ERISA," (Compl. ¶51). The Fund seeks $924,585.11 (plus interest) under this count for reimbursement and injunctive relief. The Fund’s payments for Pope’s medical expenses, totaling $924,585.11, were made for services provided between March 26, 2023, and December 3, 2024 (Compl. ¶26). During this period—from 03/26/2023 to 12/03/2024—Pope received medical services for his injuries, and the Fund paid related medical expenses totaling $924,585.11 (Compl. ¶26).
The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.
David Brunk is a civil litigation attorney. He can be reached at david@newmanbrunk.com.
From the Complaint Public Court Record
FV: 528293437 / 26-15084130 / 7/20/2026 - 1 - IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF SOUTH CAROLINA EASTERN DIVISION CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS HEALTH AND WELFARE FUND; and CHARLES A. WHOBREY, as Trustee, Plaintiffs, v. WILLIAM T. POPE, JR., an individual; CRYSTAL H. SWINFORD, ESQ., an individual; and DONNIE GAMACHE, ATTORNEY AT LAW, LLC, a South Carolina limited liability company, Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. 26-cv-08558 Judge Magistrate Judge COMPLAINT Plaintiffs, Central States, Southeast and Southwest Areas Health and Welfare Fund (the “Fund”) and Charles A. Whobrey, one of the Fund’s present trustees, allege as follows: Jurisdiction and Venue 1. This action is brought and maintained in accordance with the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001, et seq., and is an equitable action to enforce the terms of an employee welfare benefit plan and to obtain other appropriate equitable relief. 2. This Court has jurisdiction over this action under Sections 502(e)(1) and 502(f) of ERISA, 29 U.S.C. §§ 1132(e)(1) and 1132(f), because the Plaintiffs seek equitable relief under Title I of ERISA. This Court also has jurisdiction under 28 U.S.C. § 1331, because this action arises under the laws of the United States. Case: 1:26-cv-08558 Document #: 1 Filed: 07/20/26 Page 1 of 13 PageID #:1
FV: 528293437 / 26-15084130 / 7/20/2026 - 2 - 3. Venue is proper in this Court under Section 502(e)(2) of ERISA, 29 U.S.C. § 1132(e)(2), because an action under Title I of ERISA may be brought in the district where a plan is administered—in this case, the Northern District of South Carolina. Parties 4. The Fund is an employee welfare benefit plan as that term is defined in Section 3(1) of ERISA, 29 U.S.C. § 1002(1), and is administered from its principal and exclusive offices located in
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