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Peter Sessions

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Peter S. Sessions is a partner at Kantor & Kantor who has been with the firm since 2004. Peter represents individual clients seeking health, life, and disability benefits, typically under employee health plans.

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This week’s notable decision, Pension Benefit Guar. Corp. v. 50509 Marine LLC, No. 19-14968, __ F.3d __, 2020 WL 6882698 (11th Cir. Nov. 24, 2020), published two days before Thanksgiving, should have been issued a month earlier, during the Halloween season, as it addresses a frightening issue: can a zombie corporation operate an ERISA-governed pension plan? The creepy answer: it can!

The facts of the case stretch back to the 1990s, when an electrical supply company called Liberty Lighting Company filed for bankruptcy under Illinois law. Liberty was administratively dissolved, and its assets surrendered to creditors. Liberty’s owner, Joseph Wortley, also filed for bankruptcy, and all his assets, including his stock in Liberty, were surrendered to a trustee. However, Wortley continued to act as the administrator of Liberty’s pension plan, signing papers on behalf of the plan to effectuate benefit payments, among other activities.
Continue Reading Eleventh Circuit Holds Members of Controlled Group of Dissolved Corporation May be Liable for Pension Plan Termination Liabilities

This week’s notable decision is another Kantor & Kantor victory in a long-term disability benefit matter, Groch v. Dearborn Nat’l Life Ins. Co., No. 2:18-cv-06614 CBM (Ex), __ F. Supp. 3d __, 2020 WL 6374619 (C.D. Cal. Oct. 29, 2020).

Plaintiff brought this action for long-term disability (“LTD”) benefits under an ERISA-governed employee benefit plan insured by Defendant Dearborn National Life Insurance Company (“Dearborn”). As is typical of most LTD policies, Plaintiff was initially entitled to benefits if he demonstrated that he was unable to perform the duties of his “own occupation.” After 24 months of benefits, he had to demonstrate he was disabled from “any occupation” for which he might be qualified to continue receiving benefits.
Continue Reading District Court Rules Against Dearborn for “Moving Target” Claims Analysis in Disability Benefit Dispute

This week’s notable decision is Black v. Pension Benefit Guar. Corp., No. 19-1419, __ F.3d __, 2020 WL 5201400 (6th Cir. Sept. 1, 2020). Plaintiffs in this case were retirees of Delphi Corporation, an automotive parts supplier and former subsidiary of General Motors. In 2005, Delphi filed for bankruptcy and sought to terminate its pension benefit plan for its salaried workers, including Plaintiffs. The Pension Benefit Guaranty Corporation (“PBGC”) then stepped in and notified Delphi that while it agreed the plan should be terminated, it would seek to be appointed as statutory trustee of the plan. PBGC filed a new civil action to adjudicate termination and transfer of the plan. The bankruptcy court then confirmed Delphi’s bankruptcy plan, which terminated the pension plan. PBGC responded by voluntarily dismissing its civil action, after which it reached a termination and trusteeship agreement with Delphi. 
Continue Reading Sixth Circuit Rules in Favor of PBGC in Dispute over Termination of Delphi Corporation’s Pension Plan