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Good morning, ERISA Watchers!  It was quite the week for ERISA decisions and it was difficult to pick just one notable decision, but the winner is Griffin v. Hartford Life & Accident Ins. Co., No. 17-1251, __F.3d__, 2018 WL 3624872 (4th Cir. July 31, 2018).  The Fourth Circuit affirmed the district court’s determination that abuse of discretion, rather than de novo, applies to Hartford’s decision terminating long term disability benefits and its conclusion that Plaintiff failed to show that Hartford Life’s decision was unreasonable. 

On the standard of review, Griffin contended that the relevant plan documents gave Hartford Life full discretion to determine eligibility for benefits.  However, the decision to terminate his benefits was made by Hartford Fire Insurance Company, which is an affiliated corporation in The Hartford group of companies.  This was based on the W-2 tax forms for the Hartford employees who made the termination decision which showed that they were employees of Hartford Fire. 
Continue Reading Fourth Circuit Rules for Hartford Life In Long Term Disability Denial

Good morning, ERISA Watchers!  Today’s report is lighter than usual due to the extra mid-week report sent out this past Wednesday.  My radar has not picked up another notable Circuit decision since then but today I want to highlight a district court opinion, Paquin v. The Prudential Insurance Company of America, 2018 WL 3586397 (D. Colo. July 26, 2018), because it involves a claimant prevailing on a long-term disability claim and those are my favorite kinds of cases!

In Paquin, the plaintiff contracted encephalitis from a mosquito infected by the West Nile virus and sustained brain damage and cognitive difficulties that interfered with his job as a Business Development Director.  Prudential paid Paquin both short term disability benefits and long term disability benefits, until he attempted, unsuccessfully, to return to work for a trial period in 2004. 
Continue Reading Court Reverses Prudential’s Termination of Long Term Disability Benefits for Claimant Disabled by West Nile Virus Exposure

This week’s notable decision is Peck v. SELEX Sys. Integration, Inc., No. 17-7138, __F.3d__, 2018 WL 3431740 (D.C. Cir. July 17, 2018). Plaintiff Ronald Peck was a participant in Defendant SELEX Systems Integration’s “top-hat” ERISA-governed deferred compensation plan.  After working for SELEX for over fifteen years, the company terminated him when he refused to accept a transfer from his marketing position in D.C. to a different position in quality-control in Kansas.  Defendants denied Plaintiff’s claims for benefits under SELEX’s deferred-compensation plan and its severance policy on the basis that Plaintiff’s termination for refusing to transfer positions rendered him ineligible for benefits.  The district court granted judgment in SELEX’s favor on both claims for benefits.  The D.C. Circuit vacated the district court’s judgment with regard to the deferred compensation claim but affirmed the judgment with regard to severance pay.
Continue Reading D.C. Circuit Holds That Participant Is Entitled to Deferred Compensation Benefits Despite Termination for Refusing to Transfer Positions