Saturday, July 19, 2008

Favorable Ruling for the Worker

Favorable ruling for the worker in this US Supreme Court Erisa LTD Case:

http://www.scotusblog.com/wp/wp-content/uploads/2008/06/06-923.pdf

JUSTICE BREYER delivered the opinion of the Court.

The Employee Retirement Income Security Act of 1974
(ERISA) permits a person denied benefits under an employee
benefit plan to challenge that denial in federal
court. 88 Stat. 829, as amended, 29 U. S. C. §1001 /et seq./;
see §1132(a)(1)(B). Often the entity that administers the
plan, such as an employer or an insurance company, both
determines whether an employee is eligible for benefits
and pays benefits out of its own pocket. We here decide
that this dual role creates a conflict of interest;
that a
reviewing court should consider that conflict as a factor in
determining whether the plan administrator has abused
its discretion in denying benefits; and that the significance
of the factor will depend upon the circumstances of the
particular case. See /Firestone Tire & Rubber Co. /v. /Bruch/,
489 U. S. 101, 115 (1989).

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