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Employment Law
Compensations, Benefits
ERISA

James Cushman v. Motor Car Dealers Services Inc., American Fidelity Assurance Co.

Published: Mar. 6, 2010 | Result Date: Jul. 27, 2009 | Filing Date: Jan. 1, 1900 |

Case number: 08-CV-05284-SVW Bench Decision –  Equitable Award

Court

USDC Central


Attorneys

Plaintiff

Charles J. Fleishman
(Fleishman Law Firm)


Defendant

Thomas M. Herlihy

Francis J. Torrence
(Wilson, Elser, Moskowitz, Edelman & Dicker LLP)


Facts

Northridge Toyota employed plaintiff James Cushman as a car salesman. On July 20, 2005, Cushman complained to his doctor of back pain, numbness, prickling, and tingling in his leg, and thoracic pain due to straight-leg raising. On July 26, Cushman, who was eligible for benefits under an ERISA plan formed and sponsored by Motor Car Dealers Services, applied for disability benefits, attaching a doctor's statement opining that he was totally disabled from performing any occupation. As a result, Cushman received short-term benefits of $5,800 per month for a year, and long-term benefits of $6,000 per month beginning in August 2006. American Fidelity Assurance Co. employed Caroline Mason to evaluate Cushman's medical records and Mason declared that Cushman was able to work as a full-time car salesman. On March 12, 2008, American Fidelity informed Cushman that it would be discontinuing benefits payments to him. On April 16, Cushman appealed termination of the benefits. After Cushman received no response from American Fidelity, Cushman sued American Fidelity and Motor Car Dealers Services.

Damages

Cushman sought reinstatement of his benefits and payment of previously denied benefits.

Result

The court required the defendants to reinstate Cushman's benefits, finding that the defendants improperly terminated his benefits.

Other Information

FILING DATE: Aug. 12, 2008.


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