Chung v. Provident Life and Casualty Insurance Company

CourtDistrict Court, S.D. New York
DecidedSeptember 12, 2023
Docket1:21-cv-09344
StatusUnknown

This text of Chung v. Provident Life and Casualty Insurance Company (Chung v. Provident Life and Casualty Insurance Company) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chung v. Provident Life and Casualty Insurance Company, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK i i ee EDWARD J. CHUNG, : : FINDINGS OF FACT AND Plaintiff, : CONCLUSIONS OF LAW : FOLLOWING A BENCH TRIAL ~against- : : 21 Civ. 9344 (AKH) PROVIDENT LIFE AND CASUALTY : INSURANCE COMPANY, : Defendant. :

eee eee eee eee ee ee eee ee ee ee ee eee eee ee ee wenn eee K ALVIN K. HELLERSTEIN, U.S.DJ.: Plaintiff Edward Chung filed this action alleging that Defendant Provident Life & Casualty Insurance Company (“Provident Life”) improperly terminated his disability benefits under an Individual Disability Income Policy in violation of the Employee Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C. § 1001, ef seg. See Compl., ECF No. 1. On August 17, 2022, the parties agreed to resolve their dispute with a bench trial on a stipulated administrative record pursuant to Federal Rule of Civil Procedure 52, See ECF No. 15. On July 12, 2023, the parties appeared before me for a bench trial. For the reasons identified in the below findings of fact and conclusions of law, judgment is entered in favor of Chung.

FINDINGS OF FACT! Edward Chung’s Disability Insurance Policies

1 These findings of fact are based on the parties’ stipulated record. See Fed, R. Civ. Pro. 52(a)(1) (“In an action tried on the facts without a jury ... the court must find the facts specially and state its conclusions of law separately.”).

1, Plaintiff Edward Chung is a 56-year-old attorney who last worked on December 31, 2018 as a Mergers and Acquisitions (“M&A”) Partner at Simpson, Thacher & Bartlett, LLP (“Simpson Thacher”). R. at 4105-06. 2. Chung had worked at Simpson Thacher for approximately 26 years and had specialized in high-profile, international M&A work. Jd. 3. As a Partner of Simpson Thacher, Chung received income protection to insure against the possibility of long-term disability from his occupation through a standard Group Plan and a Supplemental Plan. /d. at 120-54; 3776-99. Both Plans are subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), 29 U.S.C. $1001, et seq. Id. 148-54. Both Plans, although insured by different subsidiaries of Unum (First Unum Life Insurance Company and Provident Life and Casualty Insurance Company, respectively), are

_ administered by the claims and appeal staff at Unum Group (“Unum”). /d. at 1471-75; 3723-32, 5332-38; 6498-511; 6615-16. Chung was additionally the beneficiary of an individual disability policy written by Northwestern Mutual. /e. at 4130. 4, The Supplemental Plan provides a level of coverage beyond the basic coverage provided by the standard Group Plan. /d. at 3776-99. Partners of the firm, including Chung, were permitted to purchase and pay for this premium coverage. Jd. It is a separate Plan, solely between Provident Life and Chung, with distinct terms and conditions. fd. 5. The Supplemental Plan defines “Total Disability” or “Totally Disabled” as follows: Total Disability or Totally Disabled means that because of Injuries or Sickness: a, You are unable to perform the material and substantial duties of

1 reference the stipulated record according to the bates stamps provided in the November 10, 2022, and February 24, 2023, affirmations of Jennifer Hess. See Hess Aff., ECF Nos. 25, 37.

Your Occupation; and b. You are not engaged in any other occupation; and c. You are receiving Physician’s Care. We will waive this requirement if We receive written proof acceptable to Us that further Physician’s Care would be of no benefit to You. After the end of the Your Occupation Period, then Total Disability also means: d. You are unable to perform the material and substantial duties of Any Occupation. Id. at 3785. 6. The Supplemental Plan defines “Residual Disability” or “Residually Disabled” as follows:

Residual Disability or Residually Disabled means that You are not Totally Disabled, but due to Injury or Sickness: 1. You are unable to perform one or more of the material and substantial duties of Your Occupation; or You are unable to perform them for as long as normally required to perform them; and 2. You are receiving Physician’s Care. We will waive this requirement if We receive written proof acceptable to Us that further care would be of no benefit to You. After the end of the Elimination Period, Residual Disability or Residually Disabled also means: 3, You incur a Loss of Earnings while You are engaged in Your Occupation or Any Occupation. id. at 3784. 7. The Elimination Period in the Supplemental Plan is 365 days. Jd. at 3789. This is the number of days that the insured must be totally or residually disabled as those terms

are defined and otherwise eligible to receive benefits before benefits can be paid. Benefits are not paid during the elimination period. /d. 8. The Supplemental Plan defines Your Occupation as: “the occupation or occupations, as performed in the national economy, rather than as performed for a specific

employer or in a specific location, in which You are regularly engaged at the time You become Disabled.” Jd, at 3785. Chung’s Disability 9. Several years ago, Chung began to experience pain in his neck and upper back, which radiated with numbness and tingling to his upper extremities. /d. at 4110, His symptoms worsened over time. Jd 2177-78. By 2017, Chung’s symptoms made it difficult for him to sit, keep his neck in static position, and type on the computer for long hours. Jd. at 4109-

10. In January 2018, Chung saw Dr. Saad Chaudhary, a spinal surgeon, who diagnosed Chung with cervical spondylosis’ with C5-C6 disk degeneration, /d. at 302-03. Following that diagnosis, Chung reduced his billable hours at Simpson Thacher, recording an

average of 84.3 hours per month in the first six months of 2018. Jd. at 340. In contrast, Chung billed an average of 158.55 hours per month in 2017. Jd. 11. Chung began seeing Dr. Mare Levinson, a Physical Medicine and Rehabilitative Specialist, in April 2018. In June 2018, Dr. Levinson recommended that Chung restrict his “work to 4 hrs/day,” stating that Chung could not “sustain position in front of computer for extended periods.” /d. at 62, 4118. 12. —_ In the second half of 2018, Chung determined that he could no longer work at Simpson Thacher given his condition. He prepared to depart from the firm by winding down his responsibilities to facilitate a smooth transition of his clients, workload and duties. Jd.

3 Cervical spondylosis is a general term for “age-related wear-and-tear affecting discs in the neck.” Talavera v. Comm'r of Soc. Sec., No, 06-CV-3850 (.1G), 2011 WL 3472801, at *4n.8 (E.D.N.Y. Aug. 9, 2011).

at 4119. In the second half of 2018, Chung billed approximately two hours per day or less. Id. 4118. 13. On December 31, 2018, Chung retired from Simpson Thacher due to his condition. Id. 4119-20. He has not worked in any capacity since December 31, 2018. Chung’s Application for Benefits 14. In mid-2018, while still working at Simpson Thacher, Chung applied for disability benefits under both the Group Plan and the Supplemental Plan. On his initial claim form, Chung identified his condition as “extreme pain, numbness/tingling in fingers and arms.” Id. at 52. He stated that the onset of his condition was January 1, 2017, and that he had first been treated by a physician for the condition on January 25, 2018. Id. 15. Based upon the initial medical information supplied, Provident Life determined that Chung's date of disability was January 25, 2018. Defendant invited Chung to submit additional information regarding disability back to July 2017. Jd. at 1471. 16. Payment of benefits under the Group Plan commenced effective July 24, 2018. Id. at 1472.

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Chung v. Provident Life and Casualty Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chung-v-provident-life-and-casualty-insurance-company-nysd-2023.