Gilliam v. Plan Administrator, Retirement Plan of International Paper Co. for Union Represented Employees (Group A)

506 So. 2d 1305, 1987 La. App. LEXIS 9442
CourtLouisiana Court of Appeal
DecidedMay 6, 1987
DocketNo. 18648-CA
StatusPublished
Cited by1 cases

This text of 506 So. 2d 1305 (Gilliam v. Plan Administrator, Retirement Plan of International Paper Co. for Union Represented Employees (Group A)) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilliam v. Plan Administrator, Retirement Plan of International Paper Co. for Union Represented Employees (Group A), 506 So. 2d 1305, 1987 La. App. LEXIS 9442 (La. Ct. App. 1987).

Opinion

SEXTON, Judge.

This action arises from the denial of certain disability benefits under the International Paper Company Retirement Plan for Union Represented Employees (the Plan). The Plan was enacted pursuant to the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1001, et seq. The district court granted summary judgment in favor of the Plan and petitioner appeals this ruling. We affirm.

The facts upon which the district court reached its decision are found in a comprehensive affidavit filed by the defendant with the motion for summary judgment. That affidavit indicates that the petitioner, Alton Gilliam, quit work at International Paper Company on November 4, 1983, claiming that he was disabled. A summary of Mr. Gilliam’s claims of illness are found in a report by Dr. A.J. Tillinghast, called in as an independent medical consultant. Dr. Tillinghast reported plaintiff’s complaints as involving “3-4 years of progressive onset of periodic episodes of acute shortness of breath associated with what he describes as a closing up of his throat to the point that he is unable to breath.” Examination by several physicians including other outside medical consultants, as well as Mr. Gilliam’s own physicians, failed to find an indication of either a neuromuscular or pulmonary disorder which could be cited as causing plaintiff’s difficulty.

After a year of investigation, the Plan’s manager, on March 7, 1985, wrote a decision denying petitioner’s claim stating that “the medical evidence submitted to substantiate this claim did not support a finding of total and permanent disability nor did it demonstrate a specific ailment.” The decision further found that Mr. Gilliam presented a moderate limitation of functional capacity and was thus deemed capable of sedentary employment.

Petitioner sought consideration of the fact that a social security administrative law judge had granted him social security [1307]*1307benefits in an opinion that determined that the petitioner had the capacity to perform sedentary work. After further investigation, the Plan nevertheless categorized Mr. Gilliam as being able to perform substantial gainful employment activity productive in nature, and further found that he had no medically determinable condition.

Thus, coverage for the petitioner was denied by the Plan because his physical or mental impairment was not “medically determinable” and because he was not “incapable of engaging in any substantial gainful employment activity productive in nature” as required by the definition of disability under Section 1.24 of the retirement plan.

Mr. Gilliam filed suit against the Plan for failure to grant him benefits for total and permanent disability. The motion for summary judgment filed by the defendant was sustained by the trial court on the basis that the Plan was properly administered and that there were no material issues of fact.

In an extensive written opinion, the trial court found that the administrator had explored the medical aspects of Mr. Gilliam’s claim reasonably and “with a commendable degree of effort” and thus determined that the conclusion reached disallowing benefits was not “arbitrary or capricious.” This determination was based on the Plan’s records as evidenced by the affidavit accompanying the motion which the court determined supported the conclusion that Mr. Gilliam can perform “substantial gainful employment activity productive in nature.”

Plaintiff’s primary assignment of error raises the issue of whether the trial court applied the wrong standard of review and therefore erroneously granted the defendant’s motion for summary judgment.

Petitioner insists that the standard of review of the conduct of Plan administrators and trustees under the federal Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1001 et seq., is a “substantial evidence” test and not the “arbitrary and capricious” standard on which the lower court based its ruling.

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Related

Cramer v. Association Life Ins. Co., Inc.
563 So. 2d 267 (Louisiana Court of Appeal, 1990)

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Bluebook (online)
506 So. 2d 1305, 1987 La. App. LEXIS 9442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilliam-v-plan-administrator-retirement-plan-of-international-paper-co-lactapp-1987.