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Feb. 25, 2026 Get Citation Alerts Download PDF Add Note

Fairway Independent Mortgage Corporation as Plan Administrator for the Fairway Independent Mortgage Corporation Medical Plan v. Eric Jungnickel, Eric Jungnickel, as Trustee of the Eric Jungnickel Trust Agreement Dated September 20, 2022

District Court, N.D. Illinois

• Citations: None known
• Docket Number: 1:23-cv-05139

• Precedential Status: Unknown Status

• Opinion

• Authorities (2)

• Cited By (0)

• Summaries (0)

• Similar Cases (3.1K)

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Trial Court Document

UNITED STATES DISTRICT COURT

FORTHENORTHERN DISTRICT OFILLINOIS, EASTERN DIVISION

FAIRWAY INDEPENDENT MORTGAGE )

CORPORATION as PlanAdministratorfor the )

FAIRWAY INDEPENDENT MORTGAGE )

CORPORATION MEDICAL PLAN, )

)

Plaintiff, )

) Case#23-CV-5139

v. )

)

ERICJUNGNICKEL, ERICJUNGNICKEL, AS )

TRUSTEEOF THEERICJUNGNICKEL TRUST )

AGREEMENT DATED SEPTEMBER20,2022, )

)

Defendants. )

)

PLAINTIFF’S MOTIONFORJUDGMENT AGAINST ERIC JUNGNICKEL,

PERSONALLY, AND ERIC JUNGNICKEL, AS TRUSTEE OFTHEERIC

JUNGNICKEL TRUST AGREEMENT DATED SEPTEMBER20,2022

NOW COMES the Plaintiff, Fairway Independent Mortgage Corporation as plan
administrator for The Fairway Independent Mortgage Corporation Medical Plan, by and through
its attorneys Kolb Clare & Arnold PC, and moves this Court for an order of judgment against
Eric Jungnickel, personally, and Eric Jungnickel, as trustee of The Eric Jungnickel Trust
Agreement Dated September 20, 2022 (collectively “Jungnickel”), pursuant to F.R.C.P. 12(c)
and55(b)(2). In supportof saidmotion,Plaintiffstatesas follows:

1. Plaintiff filed this action for equitable relief pursuant to 29 U.S.C. § 1132 (a)(3) to remedy
violations of the subject ERISA plan terms by Jungnickel. The First Amended Complaint
sought such relief which included declaratory relief, injunctive relief, constructive trust,
equitable lien, and equitable surcharge. ( A copy of the First Amended Complaint was
filed under Docket #13) Such relief was requested, as material here, against Eric
Jungnickel, individually, and Eric Jungnickel as trustee of The Eric Jungnickel Trust
AgreementDatedSeptember20,2022.

2. The applicable terms of the subject Erisa plan were included in the First Amended
Complaintatparagraph#9atDocket#13,andatExhibitA of Docket#13.

3. As stated at paragraph #12 of the First Amended Complaint, in 2020, Eric Jungnickel
sustainedinjuriesduetothenegligenceof aliablethirdparty(s).

1. As stated at paragraph #13 of the First Amended Complaint, Plaintiff paid medical expenses of approximately $178,750.85 on behalf of Jungnickel for treatment of injuries hesustainedas aresultof thenegligentthirdparty’s acts/omissions.
   
2. As stated at paragraph #14 of the First Amendment complaint, Plaintiff paid the benefits reference in the paragraph above, and Jungnickel accepted them under the condition that he reimburse the Plan to the extent of benefits paid, from the specific funds or res he obtained from liable third parties. Such was not merely a promise to pay the value of medical expenses; it was a promise to pay over specific settlement funds or recovery obtainedbyJungnickel.
   
3. As stated at paragraph #15 of the First Amended Complaint, Jungnickel made a recovery of $900,000 pursuant to a personal injury lawsuit he pursued against the negligent third parties who caused his injuries. At all times relevant and as stated at paragraph #16 of the First Amended Complaint, Jungnickel was on notice of the Plaintiff’s reimbursement interestandlienonthosespecificfunds.
   
4. As stated at paragraph #17 of the First Amended Complaint, the recovery of those funds

on the personal injury settlement were considered plan assets and were to be held in trust
for the benefit of the plaintiff. As such, Jungnickel held a fiduciary obligation to the plan
to hold the specific res of the recovery and trust until the Plan’s interest in it was satisfied
fromthatres.

8. On repeated occasions, Jungnickel admitted to this court orally in open court that the
Plaintiff did in fact pay $178,750.85 in accident-related medical expenses on behalf of
Jungnickel and that he owed reimbursement to the Plaintiff from the personal injury
settlementfunds herecovered.

9. Jungnickel admitted in open court and the Court made an express finding that Jungnickel

used $334,252.50 of the personal injury lawsuit settlement funds he received to pay off
the indebtedness on his then home located at 923 Heathrow Lane, Naperville, Illinois.
(See Docket #89, paragraph 4) He also used $43,102.06 the personal injury settlement
proceeds to purchase, free and clear of indebtedness, a white 2020 Dodge Ram truck,
VIN #3C6MR5AJ5LG117933. Id.,alsocitingDocket#61

10.On March 21,2024, after hearing the parties’ positions, this Court entered a preliminary
injunction restraining Jungnickel, individually and as trustee of the Trust, from selling,
transferring, or encumbering the realty and improvements on the Heathrow Lane property
untilfurtherorderof theCourt.(Docket#33,seealsoDocket#89)

11.Jungnickel admitted to this Court that he received a copy of that injunction order and
was awareof itscontentsas of March21,2024.(SeeDocket#89,paragraph7)

12.Jungnickel has also admitted to the Court that on or about November 12, 2024, he sold
the Heathrow Lane property without leave of court or notice to any other party. The court
has previously found that the proceeds of that sale received by Eric Jungnickel,
individually and as trustee of the Trust, were $402,500.00. (Docket #89, paragraphs

10-12)

13.Rather than pay his obligation to Plaintiff, Jungnickel admitted he used of the proceeds of
the sale of his home on Heathrow Lane to purchase another residence located at 15500 E
85th St. N, Benton, Kansas 67017. He was not incompetent by any measure and was able
to sell and buy property, and he presented himself in court fully articulate. Further, he did
notdenythatheunderstoodhisobligations.(Docket#89)

14.An admission "at oral argument is a binding judicial admission, the same as any other
formal concession made during the course of proceedings." McCaskill v. SCI Mgmt.
Corp.,298F.3d 677,680(7thCir.2002)

15.The Court found Jungnickel in contempt of an order of this Court on May 7, 2025, in
which the Court made express findings which included, but were not limited to the
following. (1)Jungnickel, individually and as trustee of the Trust, knowingly and
intentionally failed to comply with the portion of the preliminary injunction order
requiring him to deposit into the registry of the court the amount of at least $178,750.85
from his personal injury settlement proceeds, wherever located. (2) He individually and
as trustee of the Trust, knowingly and willfully used proceeds from the sale of the
Heathrow Lane property for purposes other than paying his obligation to Plaintiff. (3)
The residence located at 15500 E 85th St. N, Benton, Kansas 67017 and the 2020 Dodge
Ram truck were purchased with proceeds of the personal injury settlement and are
property upon which Plaintiff holds a lien. (4) Such lien attaches to the residence located
at 15500 E 85th St. N, Benton, Kansas 67017, the aforementioned Dodge Ram truck, and
anyremainingproceeds,whereverfound.

16.The court also imposed a constructive trust on the aforementioned properties in favor of
thePlaintiff.(Docket#89,pp.3-4)

17. A default order was entered against Eric Jungnickel, individually and as trustee of the
Eric Jungnickel Trust Agreement Dated September 20, 2022, on January 29, 2024. (See
Docket#20)

18.The basic effect of an entry of default is that the well-pleaded allegations of a complaint
relating to liability are taken as true and cannot be contested. VLM Food Trading Int'l,
Inc.v.Ill.Trading Co.,811F.3d 247,255(7thCir.2016)

19.Jungnickel previously paid only $17,500.00 towards the reimbursement obligation he

owes to Plaintiff. Jungnickel’s attorneys have paid $50,000.00 towards this obligation,
leavingaprincipalamountdueof $111,250.82.

20.Because the allegations of the First Amended Complaint are taken as true by rule, and
because Jungnickel has admitted the material allegations in open court, and because the
Court has already made express findings in its contempt and injunction orders entered
previously,judgmentinfavorof Plaintiffisappropriate.

21.Pursuant to 29 U.S.C. §1132 (g)(1), it is appropriate to assess Plaintiff’s attorney’s fees
against as Eric Jungnickel, individually, and as trustee of The Eric Jungnickel Trust
Agreement Dated September 20, 2022. Reasonable attorney’s fees and costs incurred in
obtaining judgment in this matter are: $31,004.00 in reasonable attorney’s fees and
$972.45 in costs, totaling $31,976.45. (See Exhibit 1, attached hereto and incorporated
herein by reference) Such should be part of the judgment against Eric Jungnickel,
individually, and as trustee of The Eric Jungnickel Trust Agreement Dated September 20,
2022.

22.Prejudgment interest is an essential component of appropriate equitable relief under
ERISA section 502(a)(3) because it restores the time value of benefits that were

wrongfully withheld. Pursuant to First National Bank of Chicago v. Standard Bank &
Trust, 172 F.3d 472 (7th Cir. 1999), requiring Eric Jungnickel, individually, and as trustee
of The Eric Jungnickel Trust Agreement Dated September 20, 2022 to pay prejudgment
interest at the average prime rate between September 7, 2022 (date of first refusal to
repay reimbursement lien) and the present=7.75%,

(www.fedprimerate.com/prime_rate_history-monthly.htm) is appropriate. Prejudgment
interest is computed as follows: $111,250.82 x. 0.0775=$8,621.94 / 365=$23.62 x 1,255
(days)= $29,645.30. Therefore, a total judgment of principal and prejudgment interest of
$140,896.12isappropriate.

WHEREFORE, Plaintiff, Fairway Independent Mortgage Corporation as plan administrator
for The Fairway Independent Mortgage Corporation Medical Plan, by and through its attorneys
Kolb Clare & Arnold PC, and moves this Court for an order of judgment against Eric
Jungnickel, personally, and Eric Jungnickel, as trustee of The Eric Jungnickel Trust Agreement
Dated September 20, 2022 (collectively “Jungnickel”), pursuant to F.R.C.P. 12(c) and 55(b)(2)
as follows and as more clearly set forth in Plaintiff’s proposed judgment order, attached as
Exhibit2,attachedhereto:

a. Eric Jungnickel, personally, and Eric Jungnickel, as trustee of The Eric Jungnickel Trust
Agreement Dated September 20, 2022, demonstrated intentional malfeasance in a
fiduciary capacity in which they were to hold the personal injury lawsuit proceeds in trust
for the benefit of Plaintiff and return said funds upon demand, but instead intentionally
spent such funds on themselves, and violated this Court’s orders regarding preserving
such assets, and have been unjustly enriched in an amount at least $111,250.82
(principal).

i. PursuanttoFirstNationalBankofChicagov.StandardBank&Trust, 172
F.3d 472 (7th Cir. 1999), requiring Eric Jungnickel, individually, and as trustee of
The Eric Jungnickel Trust Agreement Dated September 20, 2022 to pay
prejudgment interest at the average prime rate between September 7, 2022 (date
of first refusal to repay reimbursement lien) and the present=7.75%,
(www.fedprimerate.com/prime_rate_history-monthly.htm) is appropriate.
Prejudgment interest is computed as follows: $111,250.82 x. 0.0775 (average
prime rate between 9/7/22 and 2/24/26) =$111,250.82 x. 0.0075=$8,621.94 /

   365=$23.62x1,266(days)=$29,902.92.                              

b. Therefore, a total judgment of principal and prejudgment interest of $141,153.74 is
appropriate.

c. Pursuant to 29 U.S.C. §1132 (g)(1), it is appropriate to assess Plaintiff’s attorney’s fees
against as Eric Jungnickel, individually, and as trustee of The Eric Jungnickel Trust
Agreement Dated September 20, 2022. The Court finds such reasonable attorney’s fees to
be in the amount of $31,004.00 and $972.45 in costs, and shall be part of the judgment
against Eric Jungnickel, individually, and as trustee of The Eric Jungnickel Trust
AgreementDatedSeptember20,2022.

d. Judgment for equitable surcharge against Eric Jungnickel, personally, and Eric
Jungnickel, as trustee of The Eric Jungnickel Trust Agreement Dated September 20,
2022, should be entered in the amount of $173,130.19 (includes principal, prejudgment
interest, and attorney’s fees, per Cigna v. Amara, 563 U.S. 421 (2011); Kenseth v Dean
HealthPlanInc.722F.3d 869(7thCir.2013)

e. The Court imposes an equitable lien and constructive trust on the realty located at 15500

E 85th St. N, Benton, Kansas 67017 in favor of Fairway Independent Mortgage
Corporation as plan administrator for The Fairway Independent Mortgage Corporation
Medical Plan in the amount of $173,130.19 with Fairway Independent Mortgage
Corporation as plan administrator for The Fairway Independent Mortgage Corporation
Medical Plan to have a first and priority right on said realty and its improvements,
superior to all others, to the extent of $173,130.19. Such lien and constructive trust is
also imposed on the 2020 Dodge Ram truck, VIN #3C6MR5AJ5LG117933 for the
benefitof Plaintiff.

                              Respectfullysubmitted,                 

                              KOLB CLARE&ARNOLD  PC                  
                              By:BradleyM. Arnold                    

BradleyM.Arnold

KolbClare&ArnoldPC

1110W.LakeCookRoad,Suite#150

BuffaloGrove,Il60089

(T)630-550-5228

(F)844-557-4329

barnold@kcalegal.com