Mealey's Disability Insurance
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February 10, 2023
Adequate Remedy Provided Under Claim For Wrongful Denial Of Benefits, Judge Says
WINSTON-SALEM, N.C. — A disability plan participant’s claims for breach of fiduciary duty and breach of claims procedures are duplicative of the participant’s claim for wrongful denial of benefits and must be dismissed, a North Carolina federal judge said in granted the disability insurer’s motion to dismiss.
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February 09, 2023
Termination Of LTD Benefits Not Abuse Of Discretion, Judge Says
MINNEAPOLIS — A disability insurer did not abuse its discretion in terminating a claimant’s benefits because the termination of benefits was reasonable based on the substantial medical evidence in support of the insurer’s decision, a Minnesota federal judge said.
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February 09, 2023
Only Unredacted Portions Of Administrative Record In Disability Suit Will Be Sealed
PORTLAND, Maine — A Maine federal judge determined that the interest of the public outweighs a disability insurer’s burden of redacting personally identifiable information from the administrative record and said that only the unredacted portions of the administrative record will be sealed.
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February 08, 2023
Disability Claimant Failed To Show Bone Marrow Program Acted As Agent For Insurer
SAN FRANCISCO — A California federal judge granted a disability insurer’s motion to dismiss a breach of contract and bad faith lawsuit and ordered that the claimant’s suit be closed after determining that the claimant, who sought disability benefits under a policy issued to a bone marrow donor program, failed to show in a second amended complaint that the program was acting as an agent for the disability insurer when his claim for benefits was denied.
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February 08, 2023
Termination Of LTD Benefits Was Arbitrary, Capricious, Magistrate Judge Says
JACKSONVILLE, Fla. — A Florida federal magistrate judge recommended denying a long-term disability (LTD) insurer’s motion for summary judgment and granting the disability claimant’s motion for summary judgment after determining that the insurer’s termination of benefits was arbitrary and capricious based on inconsistencies in the insurer’s benefit termination letters.
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February 08, 2023
No Coverage Owed For Medical Practices’ Expenses Under Disability Policies
NEW YORK — A neurosurgeon’s claim for coverage under disability policies that provided overhead expenses coverage for his medical practices fails because the insured’s businesses were not in “continued operation,” as required by the policies at issue, when the claim for coverage was filed, a New York federal judge said in granting the insurer’s motion for summary judgment.
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February 07, 2023
Doctrine Of Issue Preclusion Bars ERISA Claims Under Group Policy, Judge Says
FORT MYERS, Fla. — A Florida federal judge determined that summary judgment in favor of disability insurers is warranted because the doctrine of issue preclusion bars the claimant from arguing that he remains disabled under a group disability policy based on a jury’s verdict on the claimant’s state law claims brought against the same insurers who also issued individual disability policies.
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February 07, 2023
District Court Properly Denied Disability Claimant’s Motion To Reopen Case
RICHMOND, Va. — A district court did not abuse its discretion in denying a disability claimant’s motion to reopen his suit following a settlement because the claimant failed to provide any justification for not filing the motion to reopen within 60 days after the settlement was reached as required, the Fourth Circuit U.S. Court of Appeals said.
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February 02, 2023
Termination Of LTD Benefits Claim Was Not Arbitrary, Capricious, Panel Says
PHILADELPHIA — A district court correctly found that a disability insurer’s termination of a long-term disability (LTD) benefits claim was not arbitrary and capricious because the insurer’s decision was supported by ample evidence in the record, the Third Circuit U.S. Court of Appeals said in affirming the district court’s ruling.
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February 01, 2023
Breach Of Contract Claim Fails; Bad Faith Claim Survives In Disability Suit
COLUMBUS, Ohio — An Ohio federal judge denied a disability claimant’s motion for summary judgment on a breach of contract claim after determining that the complaint fails to state a claim for breach of contract; however, the judge found that the claimant’s bad faith claim related to the appeal of the benefits termination can proceed because the insurer’s failure to follow its policy requirements could support a claim for bad faith.
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January 31, 2023
District Court Properly Found LTD Benefits, Attorney Fees Owed, 9th Circuit Says
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a district court’s rulings that a disability claimant is owed long-term disability (LTD) benefits as an eligible employee under the disability plan and is entitled to an award of attorney fees based on her success on the merits.
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January 26, 2023
Breach Of Fiduciary Claims Dismissed In Disability Benefits Suit
WEST PALM BEACH, Fla. — Breach of fiduciary claims against various employees of a disability insurer and an employer’s human resources director cannot proceed because the claims stem from the wrongful denial of benefits, a Florida federal judge said in noting that the claimant is provided relief wrongful denial of benefits under the Employee Retirement Income Security Act.
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January 25, 2023
Disability Insurer Failed To Provide Full, Fair Review, 7th Circuit Says
CHICAGO — A disability insurer failed to provide a disability claimant with a full and fair review as required by the Employee Retirement Income Security Act because the insurer did not provide the claimant with a copy of a report completed by a consulting physician prior to reaching a final determination on the claim as required by the U.S. Department of Labor’s regulations on claims procedures, the Seventh Circuit U.S. Court of Appeals said.
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January 13, 2023
Medical Doctor Is Not Entitled To Partial Disability Benefits, Judge Says
INDIANAPOLIS — A medical doctor is not entitled to partial disability benefits based on his inability to use electronic transcription software to dictate notes for medical records because the doctor is able to carry out the principal duties of his occupation without the use of the software, an Indiana federal judge said Jan. 12 in granting the insurer’s motion for summary judgment.
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January 13, 2023
Jury Verdict Against Disability Insurer To Stand, 5th Circuit Panel Says
NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals refused to reverse a jury verdict entered in favor of an insured and against a disability insurer because the district court did not abuse its discretion in denying the insurer’s motion for leave to amend its answer to add counterclaims or in excluding the insurer’s proposed expert testimony prior to trial over the insured’s breach of contract claim.
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January 13, 2023
Termination Of LTD Benefits Was Not Wrong, Arkansas Federal Judge Determines
EL DORADO, Ark. — An Arkansas federal judge found that a disability insurer did not wrongfully terminate a claimant’s long-term disability (LTD) benefits because the claimant failed to provide the insurer with the required medical evidence to support her claim for total disability.
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January 13, 2023
Termination Of LTD Benefits Was Abuse Of Discretion, Judge Says
MINNEAPOLIS — A disability insurer’s termination of a claimant’s disability benefits was an abuse of discretion because the insurer gave more credit to the opinion of its own physician than to the claimant’s treating physicians without providing a reasonable explanation for doing so, a Minnesota federal judge said in granting the claimant’s motion for summary judgment and in denying the insurer’s motion for summary judgment.
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January 12, 2023
Disability Claimant Permitted To Depose Physician, Employee, Magistrate Judge Says
SALT LAKE CITY — Additional discovery in a disability benefits dispute is warranted based on exceptional circumstances in the handling of a claim for long-term disability benefits (LTD), a Utah federal magistrate judge said in allowing the disability claimant to depose the disability insurer’s physician and one of the insurer’s employees.
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January 12, 2023
Disability Benefits Suit Transferred From Kentucky To Pennsylvania Federal Court
LOUISVILLE, Ky. — A disability claimant’s suit alleging that an insurer breached its contract in terminating her claim for long-term disability benefits must be transferred to Pennsylvania federal court because Pennsylvania is the more convenient forum for the parties, a Kentucky federal judge said in granting the insurer’s motion to transfer venue.
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January 12, 2023
Disability Claimant Permitted To Depose Physician Employed By Disability Insurer
CHICAGO — An Illinois federal magistrate judge granted a disability claimant’s motion for limited discovery and said the claimant is permitted to depose a physician employed by the disability insurer because the claimant raised the possibility that the physician operated under a conflict of interest.
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January 11, 2023
4th Circuit Dismisses Disability Claimant’s Appeal Based On Parties’ Agreement
RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeal dismissed a disability claimant’s appeal of a district court’s ruling in favor of a disability insurer after the claimant notified the appeals court that the parties reached an agreement over the termination of her long-term disability (LTD) benefits claim.
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January 11, 2023
Disability Claimant Entitled To LTD Benefits, But Bad Faith Claim Fails, Judge Says
SEATTLE — A disability claimant met his burden of proving by a preponderance of the evidence that he is disabled from performing the duties of his own occupation as a trial lawyer; however, the claimant failed to show that the disability insurer acted in bad faith in denying his claim for long-term disability (LTD) benefits, a Washington federal judge said.
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January 05, 2023
9th Circuit Panel Upholds Denial Of Attorney Fees In ERISA Disability Benefits Row
SAN FRANCISCO — Upholding denial of a disability claimant’s motion for attorney fees without deciding whether a catalyst theory of recovery applies in Employee Retirement Income Security Act cases, a Ninth Circuit U.S. Court of Appeals panel said in an unpublished memorandum disposition that there was no abuse of discretion in denying the fees based on the factors outlined in Hummell v. S. E. Rykoff & Co.
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December 28, 2022
4th Circuit: Bench Trial Was Proper In ERISA Disability Benefits Denial Case
RICHMOND, Va. — A bench trial based on the administrative record was appropriate in an Employee Retirement Income Security Act suit over denial of long-term disability benefits that featured disputed issues of material fact, a Fourth Circuit U.S. Court of Appeals panel said, affirming the trial court’s ruling against an insurer.
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December 08, 2022
Motion To Remand Disability Suit Denied; Diversity Of Citizenship Exists, Judge Says
LOS ANGELES — A California federal judge denied a disability claimant’s motion to remand a breach of contract and bad faith suit after determining that complete diversity of citizenship exists between the parties because the claimant fraudulently joined an individual who conducted surveillance video on behalf of the disability insurer in an attempt to avoid federal jurisdiction.