Seventh Circuit Finds Employer Not Liable for Interruptions in Benefit Payments Under Fully Insured Disability Plan

In McCurry, v. Kenco Logistic Services, LLC, No. 22-1273, 2022 WL 4284222 (7th Cir. Sept. 16, 2022), a nonprecedential disposition, the Seventh Circuit affirmed the district court’s grant of summary judgment to Defendant Kenco Logistic Services, LLC. Plaintiff Edith McCurry, a former employee for Kenco, brought a claim under ERISA § 502(a)(1)(B) against Kenco, alleging that it was involved in the interruption of her short-term and long-term disability benefits that were ultimately paid by Hartford Life and Accident Insurance Company, Kenco’s disability insurer. The district court found that the Kenco benefit plans expressly granted fully discretion and authority to Hartford to determine eligibility for benefits and interpret policy terms. Kenco did not comply with local rules for summary judgment which rendered unrebutted the evidence in the record that Kenco did not influence Hartford’s decision making. The court found that Kenco could not be liable for any interruption in McCurry’s benefits.

The Seventh Circuit also fired warning shots against McCurry’s counsel for subjecting “Kenco to frivolous, baseless litigation” and stating that further frivolous appeals may incur monetary sanctions.

If Hartford Life and Accident Insurance Company has denied your claim for long-term disability benefits, contact us for possible representation.