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Employment Law
Compensations, Benefits
ERISA

Linda Paolone v. Aetna Life Insurance Company and Insight Health Services Corporation Long Term Disability Plan

Published: Oct. 30, 2010 | Result Date: Jun. 1, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 2:08-cv-08443-GW -CT Bench Decision –  Plaintiff

Court

USDC Central


Attorneys

Plaintiff

Tracy A. Collins


Defendant

Ronald K. Alberts
(Gordon & Rees LLP)

Lisa K. Garner
(Gordon & Rees LLP)


Facts

Defendant Insight Health Service employed plaintiff Linda Paolone as an operations manager in May 2004. Insight provided her with long-term disability insurance under a group disability employee welfare benefit plan, which defendant Aetna Life Insurance insured.

On July 3, 2008, Aetna ceased paying benefits to Paolone , asserting that she was no longer disabled. Aetna affirmed its decision to deny befits in 2008.

Paolone filed an action against Insight's Disability Plan and Aetna, alleging ERISA violations.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that Aetna improperly canceled her benefits because she was still considered disabled under the Insight Disability Plan. Plaintiff contended that her doctors had not released her to work and the Social Security Administration had endorsed her disability benefits.

DEFENDANT'S CONTENTIONS:
Aetna argued that plaintiff did not provide enough proof of her complete disability and that she could perform the material duties of her position, or an alternative position.

Result

The court ordered Aetna to reinstate plaintiff's benefits from July 2008 and onward, so long as plaintiff met the definition of "disabled" pursuant to the plan. In addition, the court awarded plaintiff her costs.


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