Beth Jordan v. Reliance Standard Life Ins. Co.

CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 18, 2023
Docket22-5234
StatusUnpublished

This text of Beth Jordan v. Reliance Standard Life Ins. Co. (Beth Jordan v. Reliance Standard Life Ins. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beth Jordan v. Reliance Standard Life Ins. Co., (6th Cir. 2023).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 23a0386n.06

Nos. 22-5234 FILED UNITED STATES COURT OF APPEALS Aug 18, 2023 FOR THE SIXTH CIRCUIT DEBORAH S. HUNT, Clerk

) BETH NICHOLE JORDAN, ) Plaintiff-Appellant, ) ON APPEAL FROM THE ) UNITED STATES DISTRICT v. ) COURT FOR THE EASTERN ) DISTRICT OF TENNESSEE RELIANCE STANDARD LIFE ) INSURANCE COMPANY, ) OPINION Defendant-Appellee. ) )

Before: COLE, CLAY, and KETHLEDGE, Circuit Judges.

CLAY, Circuit Judge. Plaintiff Beth Nichole Jordan appeals to recover disability benefits

from a group long-term disability insurance policy governed by § 502(a)(1)(B) of the Employee

Retirement Income Security Act of 1974 (“ERISA”). The district court upheld Defendant Reliance

Standard Life Insurance Company’s denial of Jordan’s benefits for the disputed period of

coverage. For the reasons set forth below, we REVERSE the judgment of the district court and

REMAND the case with instructions to award Jordan the long-term disability benefits for the

disputed period of coverage from August 2, 2016 to September 18, 2017, and for such other relief

as the district court finds appropriate and consistent with this opinion.

I. BACKGROUND

A. Factual Background

Beth Jordan claims Reliance Standard Life Insurance Company (“Reliance Standard”)

violated ERISA, 29 U.S.C. § 1132(a)(1)(B), when it denied her disability benefits under its Case No. 22-5234, Jordan v. Reliance Standard Life Ins. Co.

ERISA-based plan. Jordan worked as a nurse anesthetist; however, starting in July of 2009, she

could no longer work due to symptoms of Lyme disease. Jordan then submitted a timely claim for

long-term disability benefits under her employer’s disability benefits plan, administered by

Reliance Standard on July 17, 2009. Jordan’s application indicated, with support from medical

documents, that she was suffering from symptoms of Lyme disease, which included, “left-sided

weakness, numbness, tingling, pain, and burning from scalp to toes.” (Administrative Record, R.

100-1, Page ID # 2462). Jordan also indicated that she was being treated for depression and

receiving psychotherapy treatment. Based on this information, Reliance Standard determined that

Jordan was unable to perform her duties at work and disbursed benefits from October 15, 2009

through May 15, 2015. This appeal concerns long-term disability benefits purportedly owed to

Jordan from August 2016 to September 2017.

In 2015, Reliance Standard determined that based on Jordan’s medical records she was no

longer “totally disabled,” and did not qualify for long-term disability benefits. (Administrative

Record, R. 100-1, Page ID # 2464). Reliance Standard notified Jordan on May 15, 2015 that her

benefits were terminated. Importantly, Reliance Standard’s definition of “totally disabled”

changed while Jordan was receiving benefits. Prior to October of 2015, Reliance Standard’s plan

defined “totally disabled” to mean “that as a result of an Injury or Sickness: . . . an Insured cannot

perform the material duties of his/her regular occupation.” (Id., Page ID # 2476). Beginning on

August 1, 2016, the plan required that to be “totally disabled,” “an Insured cannot perform the

material duties of any occupation. Any occupation is one that the Insured’s education, training or

experience will reasonably allow.” (Id.). Jordan timely appealed Reliance Standard’s decision

through Reliance Standard’s internal appellate-review process.

-2- Case No. 22-5234, Jordan v. Reliance Standard Life Ins. Co.

In connection with Jordan’s appeal, Reliance Standard requested that Jordan undergo an

independent medical examination pursuant to the terms of the policy. However, due to several

conflicts, Jordan did not attend her exam.

B. Procedural History

On February 5, 2016, Jordan filed a complaint against Reliance Standard in the district

court, claiming she exhausted administrative remedies prior to commencing an ERISA claim in

federal court because Reliance Standard failed to timely decide her appeal. See Constantino v.

TRW, Inc., 13 F.3d 969, 974 (6th Cir. 1994). On February 11, 2016, Reliance Standard issued its

decision regarding Jordan’s appeal affirming the denial of the claim based on Jordan’s failure to

cooperate by failing to attend the rescheduled examination. Reliance Standard then filed a motion

to dismiss Jordan’s claims based on her failure to exhaust administrative remedies prior to filing a

claim in federal court.1 The district court construed this motion to be a motion for dismissal under

Federal Rule of Civil Procedure 12(b)(6).

The district court found that Jordan failed to plead sufficient facts that she had exhausted

her administrative remedies under ERISA’s provisions. Thus, the district court remanded the

claim to Reliance Standard to schedule an independent medical examination and issue a final

decision on the merits of Jordan’s claim.

1 A plaintiff must exhaust administrative remedies before filing a claim in federal court, which requires that a plan administrator provide a final decision as to that plaintiff’s entitlement to benefits. Heimeshoff v. Hartford Life & Accident Ins. Co., 134 S. Ct. 604, 610 (2013). Untimeliness of the administrator’s decision is construed to be a denial of benefits, and thus, qualifies as a final decision ripe for review in federal court. 29 C.F.R. § 2560.503-1(i)(1)(i), (i)(3)(i), (l)(2)(i). Upon written notice, and under “special circumstances,” an administrator may extend its time to reach a decision, not to exceed ninety days from the plaintiff’s request for a review. Id. § 2560.503-1(i)(1)(i). -3- Case No. 22-5234, Jordan v. Reliance Standard Life Ins. Co.

1. Reliance Standard’s Initial Review

Following the remand, Reliance Standard scheduled an independent medical examination

with Dr. Joseph Sentef, Board Certified in Occupational Medicine, to take place on February 23,

2018. Dr. Sentef concluded that Jordan has “functional capacity to perform an occupation within

my restrictions and limitations on a full-time basis.” (Administrative Record, R. 100-7, Page ID

# 2858). However, at the time of Dr. Sentef’s assessment, Jordan had already returned to work.

When asked if his conclusion would be the same for Jordan’s ability to work on May 1, 2015, Dr.

Sentef stated that it would not. Dr. Sentef reasoned that “she would not have had the ability to

perform consistent full-time work” because “she had significant left-sided weakness with

associated neuropathic symptoms and had significant behavioral health symptoms.” (Id.). After

the report, Reliance Standard asked Dr. Sentef when Jordan would have been capable of full-time

work. In an addendum to his original report, Dr. Sentef answered Reliance Standard’s question,

stating:

There is a scarcity of medical information available during 2016 and 2017, which makes it very difficult to assess her functional capacity during this period.

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