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No. 120803
| State
Treasurer, |
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Thomas L. Casey |
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Plaintiff-Appellant,
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Daniel M. Levy (313) 456-0140 |
| vs (Appeal
from Ct of Appeals) |
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(Clinton
-- Tahvonen, R.)
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Thomas K. Abbott,
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Thomas K. Abbott (Pro Per) |
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Defendant-Appellee,
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| and |
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| Auto Body Credit Union and |
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| Joann A. Abbott, |
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Defendants.
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Click to view briefs in Adobe format:
Plaintiff-Appellant's Brief on Appeal>>
Defendant-Appellee's Brief on Appeal>>
Background
In 1996, Thomas K. Abbott was convicted of criminal sexual conduct and
was sentenced to 20-30 years in prison. He had previously retired from
General Motors and was receiving a pension. He deposited the pension
in a credit union account to which his wife had access. The State Treasurer
sued Abbott in Clinton County Circuit Court under Michigan's State Correctional
Facility Reimbursement Act. Under the act, the State Treasurer may seek
reimbursement from a prisoner for incarceration costs where the prisoner
is able to pay maintenance. Clinton County Circuit Judge Randy L. Tahvonen
entered an order directing General Motors to pay the pension directly
to Abbott's state prison account. The prison warden, as receiver, would
then deposit an amount in Abbott’s prison account, dividing the
balance between the state and Abbott's wife. The prisoner appealed,
contending that the court order violated the non-alienation provision
of the Employee Retirement Income Security Act [ERISA]. That provision
states that "[e]ach plan shall provide that benefits provided under
the plan may not be assigned or alienated." Ultimately, the Court
of Appeals agreed and reversed the circuit court. The State Treasurer
appeals. The Treasurer argues in part that the order directing the change
of the prisoner's pension address and requiring the deposit of pension
funds into his personal prison account did not constitute an assignment
prohibited by ERISA.
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