Prince v. Metropolitan Life et al.

2010 DNH 046
CourtDistrict Court, D. New Hampshire
DecidedMarch 16, 2010
DocketCV-08-471-JL
StatusPublished
Cited by4 cases

This text of 2010 DNH 046 (Prince v. Metropolitan Life et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prince v. Metropolitan Life et al., 2010 DNH 046 (D.N.H. 2010).

Opinion

Prince v. Metropolitan Life et al. CV-08-471-JL 3/16/10 UNITED STATES DISTRICT COURT DISTRICT OF NEW HAMPSHIRE

Laurie Prince

v. Civil N o . 08-cv-471-JL Opinion N o . 2010 DNH 046 Metropolitan Life Insurance C o . and Verizon Communications, Inc.

OPINION & ORDER

This case presents an employee’s claim for disability

benefits due to ear pain and other symptoms that she attributes

to fibromyalgia, chronic pain syndrome, and depression.

Plaintiff Laurie Prince brought suit under the Employee

Retirement Income Security Act (“ERISA”), 29 U.S.C. §§ 1001 et

seq., against her former employer, Verizon Communications, Inc.,

and its claims administrator, Metropolitan Life Insurance C o .

(“MetLife”), both of which had denied her disability claim. She

asks this court either to overrule them and award her benefits

under Verizon’s disability plan, see id. § 1132(a)(1)(B)

(authorizing civil actions “to recover benefits due” under an

ERISA plan), or else to remand the case for reconsideration in

light of a medical report issued shortly after her claim was

denied. The defendants argue that they were justified in making

a decision based solely on the record before them at the time,

which in their view failed to establish that Prince was disabled

from performing her job. This court has subject-matter jurisdiction under 28 U.S.C. § 1331 (federal question) and 29

U.S.C. § 1132(e)(1) (ERISA).

Both sides have moved for judgment on the administrative

record, see L.R. 9.4(c), and have summarized it in a joint

statement of material facts, see L.R. 9.4(b). After oral

argument and a careful review of the record, judgment is granted

to the defendants. Even assuming that Prince suffers from

fibromyalgia, chronic pain syndrome, and depression (despite the

lack of a clear consensus among her doctors as to those

diagnoses), the record fails to show that her ear pain and other

symptoms prevented her from working in a desk job. The

defendants did not abuse their discretion by denying her claim

for disability benefits. Nor were they required to reopen their

decision based on the belated medical report that Prince

submitted.

I. Applicable legal standard

The standard of review in an ERISA case differs from that in

an ordinary civil case, where summary judgment is designed to

screen out cases that raise no trialworthy issues. See, e.g.,

Orndorf v . Paul Revere Life Ins. Co., 404 F.3d 5 1 0 , 517 (1st Cir.

2005). “In the ERISA context, summary judgment is merely a

vehicle for deciding the case,” in lieu of a trial. Bard v .

2 Boston Shipping Ass’n, 471 F.3d 229, 235 (1st Cir. 2006). Rather

than consider affidavits and other evidence submitted by the

parties, the court reviews the denial of ERISA benefits based

“solely on the administrative record,” and neither party is

entitled to factual inferences in its favor. Id. Thus, “in a

very real sense, the district court sits more as an appellate

tribunal than as a trial court” in deciding whether to uphold the

administrative decision. Leahy v . Raytheon Co., 315 F.3d 1 1 , 18

(1st Cir. 2002).

Where, as here, an ERISA benefits plan gives its

administrator discretion to decide whether an employee is

eligible for benefits,1 “the administrator’s decision must be

upheld unless it is arbitrary, capricious, or an abuse of

discretion.” Wright v . R.R. Donnelley & Sons C o . Group Benefits

Plan, 402 F.3d 6 7 , 74 (1st Cir. 2005). This standard is

“generous” to the administrator, but “is not a rubber stamp.”

Wallace v . Johnson & Johnson, 585 F.3d 1 1 , 15 (1st Cir. 2009).

The administrator’s decision must be “reasoned and supported by

substantial evidence.” Medina v . Metro. Life Ins. Co., 588 F.3d

4 1 , 45 (1st Cir. 2009). “Evidence is substantial if it is

reasonably sufficient to support a conclusion.” Stamp v . Metro.

1 Both parties agree that Verizon has discretion under its disability plan to determine an employee’s eligibility for benefits.

3 Life Ins. Co., 531 F.3d 8 4 , 87 (1st Cir. 2008). “Evidence

contrary to an administrator's decision does not make the

decision unreasonable, provided substantial evidence supports the

decision.” Wright, 402 F.3d at 7 4 .

Prince argues that this court should instead review the case

de novo because Verizon has a structural conflict of interest.

It is true that such a conflict exists: Verizon has a self-

funded disability plan under which it bears responsibility both

for determining an employee’s eligibility for benefits and for

paying any benefits awarded. But as our court of appeals

recently explained, “the presence of a conflict of interest does

not change the standard of review.” Cusson v . Liberty Life

Assurance C o . of Boston, 592 F.3d 215, 224 (1st Cir. 2010); see

also Denmark v . Liberty Life Assurance C o . of Boston, 566 F.3d 1 ,

9 (1st Cir. 2009). Rather, the “conflict should ‘be weighed as a

factor in determining whether there is an abuse of discretion,’”

alongside any other relevant factors. Cusson, 592 F.3d at 224

(quoting Metro. Life Ins. C o . v . Glenn, 128 S . C t . 2343, 2350

(2008)).

To determine how much weight to give the conflict, this

court is “duty-bound to inquire into what steps a plan

administrator has taken to insulate the decisionmaking process

against the [conflict’s] potentially pernicious effects.”

Denmark, 566 F.3d at 9. Here, Verizon took a number of

4 insulating steps. Most notably, it delegated to two outside

insurance companies (Aetna Life Insurance C o . and MetLife) the

authority for making the initial benefits determination and

hearing Prince’s first-level administrative appeal, respectively.

Only at the second and final appeals stage did Verizon (through

its claims review committee) become involved in reviewing the

denial of Prince’s claim. Courts have consistently held that

conflicts should be given less weight where the administrator has

“added the intercession of an independent claims administrator”

at those early stages of review. Krensavage v . Bayer Corp., 314

Fed. Appx. 4 2 1 , 425 (3d Cir. 2008); see also Neal v . Christopher

& Banks Comprehensive Major Med. Plan, 651 F. Supp. 2d 8 9 0 , 906-

07 (E.D. Wis. 2009); Dunn v . Reed Group, Inc., N o . 08-1632, 2009

WL 2848662, at *9 (D.N.J. Sept. 2 , 2009); Wattenhofer v . Target

Corp., N o . 07-4116, 2009 WL 3242025, at *3 (D. Minn. Oct. 2 ,

2009); Russell v . Alcoa, Inc., N o . 06-1459, 2008 WL 906448, at *8

(M.D. P a . Mar. 3 1 , 2008).

Prince, who “bears the burden of showing that the conflict

influenced Liberty’s decision,” Cusson, 592 F.3d at 225, points

to Verizon’s refusal to consider a medical report that she

submitted shortly after the final administrative decision. She

characterizes this refusal as “procedural unreasonableness,”

which the Supreme Court has said can “justif[y] the court in

giving more weight to the conflict.” Glenn, 128 S . C t .

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