This short term disability insurance case originated from North Carolina and involved a claim that was denied under the TYCO short term disability plan. This North Carolina disability claim was not governed by ERISA as the TYCO short term disability plan is self-funded. The theory for filing a lawsuit in this claim was breach of contract, but in an unusual argument the North Carolina disability insurance attorney attempted to argue that ERISA should apply to the case. This case is an unusual disability insurance claim.
A federal court of appeals upheld Guardian Insurance Company’s denial of disability benefits. The claimant in this case was paid disability insurance benefits for several years, but when he returned to work for more than 40 hours a week, Guardian was convinced he was no longer eligible for benefits. The disability claimant disagreed as he did not think he was capable of working and earning the same amount of money he earned pre-disability. The court disagreed with the claimant’s argument.
This disability insurance case was a short term disability insurance claim that was denied by Broadspire. The disability claimant was denied on multiple occasions and was finally forced to file an ERISA disability lawsuit against Broadspire Services and Cytec.
FAQ (ERISA Information):
What is the discretionary clause in a disability insurance policy?