Bigley v. Ciber, Inc.

853 F. Supp. 2d 1079, 2011 WL 6967625, 2011 U.S. Dist. LEXIS 151497
CourtDistrict Court, D. Colorado
DecidedDecember 20, 2011
DocketCivil Action No. 11-cv-0055-RBJ-MJW
StatusPublished

This text of 853 F. Supp. 2d 1079 (Bigley v. Ciber, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bigley v. Ciber, Inc., 853 F. Supp. 2d 1079, 2011 WL 6967625, 2011 U.S. Dist. LEXIS 151497 (D. Colo. 2011).

Opinion

ORDER ON PENDING MOTIONS

R. BROOKE JACKSON, District Judge.

Plaintiff, a former employee of Ciber, Inc., claims entitlement to long-term disability benefits under Ciber’s employee benefits plan. She contends that the plan’s denial of benefits violated Section 502(a) of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1132(a). Three objections to magistrate judge orders are pending and are resolved by this order.

Facts

Linda Bigley alleges that she has been disabled under the plan’s definitions since May 6, 2002. She received long term disability benefits from May 6, 2002 through May 5, 2004. Her benefits were terminated as of May 6, 2004. She exhausted administrative appeals and then filed this case in state court on November 6, 2007. After more than three years of procedural skirmishing in the state trial and appellate courts, the defendant was served with the summons and complaint on December 9, 2010. Defendant then removed the case to this Court based upon federal question jurisdiction.

[Plaintiffs] Objection to Magistrate Judge’s Denial of Plaintiffs Motion to Use the Appendix F.l Scheduling Order Form [docket # 13].

On March 31, 2011 the Magistrate Judge, pursuant to an order of reference from the district court, issued an order setting a scheduling conference. He directed the parties to submit a scheduling order in advance of the conference using the format set forth in Appendix F.2 of the [1082]*1082local rules which provides the format to be used in actions for review on an administrative record.1 Plaintiff then moved for an order that Appendix F.l, applicable to civil actions generally, be used instead. Plaintiff argued that the use of Appendix F.l would deprive plaintiff of due process, including the right to discovery and a jury trial. On June 2, 2011 the magistrate judge denied the motion by written order without further comment. The order combines the magistrate judge’s implicit interpretation of the nature of the case (an action for review on an administrative record) and application of a local rule. These are conclusions of law that this Court reviews de novo. Fed.R.Civ.P. 72(a).

Review by district courts of a denial or termination of benefits under ERISA is under a de novo standard unless the benefit plan “gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan.” Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 115, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989). If discretionary authority exists, review is under an abuse of discretion (arbitrary and capricious) standard. Ibid.

Review under an abuse of discretion standard is generally limited to the administrative record. Holcomb v. Unum Life Ins. Co. of America, 578 F.3d 1187, 1192 (10th Cir.2009); Hall v. UNUM Life Ins. Co. of America, 300 F.3d 1197, 1201 (10th Cir.2002); Sandoval v. Aetna Life and Cas. Ins. Co., 967 F.2d 377, 381 (10th Cir.1992). See also Graham v. Hartford Life & Acc. Ins. Co., 589 F.3d 1345, 1355-57 (10th Cir.2009) (no right to jury trial in ERISA eases). But see Murphy v. Deloitte & Touche Group Ins. Plan, 619 F.3d 1151 (10th Cir.2010) (if an administrator operates under a “dual role conflict of interest,” a claimant might not have access to the information necessary to establish the seriousness of the conflict without discovery). If a de novo standard applies, then the district court may supplement the record “ ‘when circumstances clearly establish that additional evidence is necessary to conduct an adequate de novo review of the benefit decision.’ ” Id. at 1202 (quoting Moon v. Am. Home Assurance Co., 888 F.2d 86, 89 (11th Cir.1989)).

The Tenth Circuit cautioned that, even in de novo review cases, “it is the unusual case in which the district court should allow supplementation.” Hall, 300 F.3d at 1203. Examples of exceptional circumstances that could warrant the admission of additional evidence are

(1) claims that require consideration of complex medical questions or issues regarding the credibility of medical experts; (2) the availability of very limited administrative review procedures with little or no evidentiary record; (3) the necessity of evidence regarding interpretation of the terms of the plan rather than specific historical facts; (4) instances where the payor and the administrator are the same entity and the court is concerned about impartiality; (5) claims which would have been insurance contract claims prior to ERISA; and (6) circumstances in which there is additional evidence that the claimant could not have presented in the administrative process.

Ibid, (quoting Quesinberry v. Life Ins. Co. of N. Am., 987 F.2d 1017, 1027 (4th Cir.1993) (numbers added)). District courts are not required to admit additional evidence even when these circumstances exist. “[T]he party seeking to supplement [1083]*1083the record bears the burden of establishing why the district court should exercise its discretion to admit particular evidence by showing how that evidence is necessary to the district court’s de novo review.” Ibid.

Plaintiff cites Jewell v. Life Ins. Co. of North America, 508 F.3d 1303 (10th Cir.2007). In a footnote in that case, which like the present case involved a claim of an ERISA violation, the court criticized the phrase “judgment on the administrative record.” The court noted that the Federal Rules of Civil Procedure do not contemplate such a mechanism, and that it creates unnecessary work for appellate courts “in deciding whether to construe such a motion ex post as one for a bench trial ‘on the papers’ [citing Hall, supra] or as one for summary judgment.” Id. at 1307 n. 1 (other citations omitted). This comment did not suggest that a plaintiff in an ERISA case is entitled to a conventional trial or to conventional Rule 26-type discovery procedures.

In short, review is on the administrative record, subject to supplementation in some circumstances. Therefore, Appendix F.2, not F.l, provides the appropriate format. I emphasize as well that all the magistrate judge did was select a format for a scheduling order. He did not address discovery or whether supplementation of the record would be permitted.

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Related

Firestone Tire & Rubber Co. v. Bruch
489 U.S. 101 (Supreme Court, 1989)
Jewell v. Life Insurance Co. of North America
508 F.3d 1303 (Tenth Circuit, 2007)
Weber v. GE Group Life Assurance Co.
541 F.3d 1002 (Tenth Circuit, 2008)
Holcomb v. Unum Life Insurance Co. of America
578 F.3d 1187 (Tenth Circuit, 2009)
Graham v. Hartford Life & Accident Insurance
589 F.3d 1345 (Tenth Circuit, 2009)
Murphy v. Deloitte & Touche Group Insurance Plan
619 F.3d 1151 (Tenth Circuit, 2010)
Panther v. Synthes (U.S.A.)
371 F. Supp. 2d 1267 (D. Kansas, 2005)

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Bluebook (online)
853 F. Supp. 2d 1079, 2011 WL 6967625, 2011 U.S. Dist. LEXIS 151497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bigley-v-ciber-inc-cod-2011.