Lain v. UNUM Life Insurance Co. of America

27 F. Supp. 2d 926, 1998 WL 789738
CourtDistrict Court, S.D. Texas
DecidedOctober 22, 1998
DocketCiv.A. H-97-3560
StatusPublished
Cited by10 cases

This text of 27 F. Supp. 2d 926 (Lain v. UNUM Life Insurance Co. of America) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lain v. UNUM Life Insurance Co. of America, 27 F. Supp. 2d 926, 1998 WL 789738 (S.D. Tex. 1998).

Opinion

MEMORANDUM OPINION AND ORDER

LAKE, District Judge.

Pending before the court are Plaintiffs Motion for Partial Summary Judgment (Docket Entry No. 16) and Defendant’s Motion to Strike Jury Demand (Docket Entry No. 21). For the reasons explained below plaintiffs motion will be denied and defendant’s motion will be granted.

I. BACKGROUND

Plaintiff Ellen Lain is a former partner in the law firm of Schlanger, Mills, Macer & Grossberg (formerly known as Schlanger, Cook, Cohn, Mills & Grossberg). 1 As a partner Lain had the authority to act on behalf of the firm in furtherance of its business in the same manner as the other partners in the firm, and she shared in the firm’s profits and losses. Lain withdrew from the partnership on October 30,1995.

Sometime in 1988 or 1989 the law firm selected defendant UNUM Life Insurance Company of America (“UNUM”) as the firm’s long-term disability insurance carrier. As a partner in the firm Lain participated in the firm’s decisions to select UNUM, to insure all employees, and to make insurance for partners optional at their choice and cost, and the firm’s choices of the length of the waiting period, the benefit levels under the policy, minimum requirements for coverage, and the definition of disability for each class covered by the policy. Lain specifically recalls discussions in the firm’s conference room regarding the proposed UNUM policy and the final vote to adopt the plan. 2 The *928 long-term disability plan did not automatically cover partners; however, partners could become covered by paying their own premiums. 3 Lain enrolled in the plan as a partner in the law firm.

Lain submitted a claim for benefits to UNUM in September of 1995. 4 UNUM denied it. On September 29, 1997, Lain filed suit against UNUM in the 164th District Court of Harris County. UNUM removed the action to this court on October 28, 1997, and filed an answer and counterclaim on November 6, 1997. On July 15, 1998, Lain filed an amended complaint asserting seven causes of action:

(1) breach of contract,
(2) equitable or promissory estoppel,
(3) common-law fraud and intentional misrepresentation,
(4) violation of the Texas Deceptive Trade Practices Act,
(5) violation of article 21.21 of the Texas Insurance Code,
(6) breach of fiduciary duty and breach of the duty of good faith and fair dealing, and
(7) in the event that these claims are preempted, denial of benefits and breach of fiduciary duty under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001-1461.

On August 19, 1998, Lain filed a motion for partial summary judgment asking this court to declare that ERISA does not preempt her state-law claims against UNUM. On September 24, 1998, UNUM filed a motion to strike Lain’s jury demand. Because the court’s ruling on the motion to strike depends upon whether ERISA preempts Lain’s state law claims, the court first will evaluate Lain’s motion for partial summary judgment.

II. SUMMARY JUDGMENT STANDARD

Rule 56 of the Federal Rules of Civil Procedure governs the propriety of summary judgment. Summary judgment should be granted if the record, taken as a whole, “together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c); New York Life Ins. Co. v. Travelers Ins. Co., 92 F.3d 336, 338 (5th Cir.1996); Rogers v. International Marine Terminals, Inc., 87 F.3d 755, 758 (5th Cir.1996). The Supreme Court has interpreted the plain language of Rule 56(c) as mandating “the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986); see Gunaca v. Texas, 65 F.3d 467, 469 (5th Cir.1995).

A party moving for summary judgment “must ‘demonstrate the absence of a genuine issue of material fact,’ but need not negate the elements of the nonmovant’s case.” Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994) (en banc) (quoting Celotex, 106 S.Ct. at 2553). “The movant accomplishes this by informing the court of the basis for its motion, and by identifying portions of the record which highlight the absence of genuine factual issues.” Rizzo v. Children’s World Learning Ctrs., Inc., 84 F.3d 758, 762 (5th Cir.1996) (citing Topalian v. Ehrman, 954 F.2d 1125, 1131 (5th Cir.1992)). If the moving party “fails to meet this initial burden, the motion must be denied, regardless of the nonmovant’s response.” Little, 37 F.3d at 1075.

If, however, the moving party meets this burden, Rule 56(c) requires the nonmovant to go beyond the pleadings and to show by affidavits, depositions, answers to interrogatories, admissions on file, or other admissible evidence that specific facts exist over which there is a genuine issue for trial. EEOC v. Texas Instruments Inc., 100 F.3d 1173, 1180 *929 (5th Cir.1996); Wallace v. Texas Tech Univ., 80 F.3d 1042, 1046-47 (5th Cir.1996). The nonmovant’s burden may not be satisfied by eonclusory allegations, unsubstantiated assertions, metaphysical doubt as to the facts, or a mere scintilla of evidence. Wallace, 80 F.3d at 1047; Little, 37 F.3d at 1075.

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27 F. Supp. 2d 926, 1998 WL 789738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lain-v-unum-life-insurance-co-of-america-txsd-1998.