An Illinois disability lawyer filed a federal lawsuit in Federal court against Liberty Life Assurance Company of Boston (Liberty) and Allstate Cafeteria Plan (Allstate). The Plaintiff, William B., was employed by Allstate as a Claim Senior Manager. Due to this employment, Plaintiff was eligible to receive short-term and long-term disability benefits under the Allstate STD Program, which was funded by Liberty.

In William B. Vs. Liberty Life Assurance Company Of Boston and Allstate Cafeteria Plan, Plaintiff seeks payment of wrongfully terminated long-term disability benefits by Liberty.

Case Facts Against Liberty and Allstate

Plaintiff worked as a Claim Senior Manager for Allstate until February 17, 2010 when he stopped working due to a combination of several psychiatric impairments. Before he stopped working, Plaintiff filed a claim for short-term disability benefits under the Allstate STD Program, which was approved by Liberty. Plaintiff began receiving STD benefits from February 25, 2010 to July 7, 2010.

Liberty informed Plaintiff via letter on August 4, 2010 that he was also eligible to receive long-term disability benefits as of July 8, 2010. From August 19, 2010 to May 2011, Plaintiff also received LTD benefits from a separate LTD policy he had purchased on his own.

Termination of Long-Term Disability Benefits By Liberty

On May 5, 2011, Plaintiff was notified by Liberty that he would no longer receive LTD benefits after May 12, 2011. This denial was made primarily due to the results of a file review performed by a non-examining physician.

On July 15, 2011, Plaintiff filed an appeal of this denial, supplying additional evidence that he was still participating in an extended treatment plan and that his doctor refused to grant permission to the Plaintiff to return to work based on his current condition. Despite this additional evidence, Liberty denied the Plaintiff’s appeal on September 9, 2011, again basing their decision on the file reviews conducted by non-examining physicians.

Due to the fact that all administrative remedies have been exhausted, Plaintiff has filed this lawsuit against Liberty and Allstate.

Disability Lawyer Files Lawsuit Against Liberty And Allstate

According to the lawsuit, the Plaintiff claims that Liberty committed the following wrongful actions against the Plaintiff:

  • Terminating the Plaintiff’s long-term disability benefits based on file reviews conducted by non-examining physicians
  • Failing to provide a full and fair review of the Plaintiff’s claim
  • Failing to fully consider the Plaintiff’s current medical condition, which is enough evidence for Prudential Insurance Company of America, payer of the Plaintiff’s other LTD policy, to provide LTD benefit payments to the Plaintiff
  • Causing the Plaintiff financial hardship due to the wrongful termination of LTD benefits

The Following Relief Is Sought By The Plaintiff Against Liberty And Allstate

Due to the actions of Liberty and Allstate, Plaintiff requests the following relief to be granted by the Court:

  • To pay all owed long-term disability benefits
  • To pay all prejudgment interest on owed LTD benefits at a rate of 9% per annum
  • To pay all future LTD benefits as long as the Plaintiff remains eligible to receive them according to the terms of the Plan
  • To pay all reasonable attorney’s fees
  • To pay all associated court costs
  • To pay all other relief that the Court deems proper and just

About the author: Gregory Michael Dell is an attorney and managing partner of the disability income division of Attorneys Dell & Schaefer. Mr. Dell and his team of lawyers have assisted thousands of long-term disability claimants with their claims against every major disability insurance company. To request a free legal consultation call 800-698-9162.