Till v. Lincoln National Life Insurance

107 F. Supp. 3d 1240, 2015 U.S. Dist. LEXIS 69442, 2015 WL 3452540
CourtDistrict Court, M.D. Alabama
DecidedMay 21, 2015
DocketCivil Action No. 2:14-CV-721-WKW
StatusPublished

This text of 107 F. Supp. 3d 1240 (Till v. Lincoln National Life Insurance) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Till v. Lincoln National Life Insurance, 107 F. Supp. 3d 1240, 2015 U.S. Dist. LEXIS 69442, 2015 WL 3452540 (M.D. Ala. 2015).

Opinion

ORDER

WALLACE CAPEL, JR., United States Magistrate Judge.

Before the court is Defendant’s Motion for Protective Order Regarding Plaintiffs Discovery Requests (Doc. 25). Plaintiff has filed a response in opposition, which includes Plaintiffs own Motion to Strike Defendant’s Discovery Objections and to Compel Defendant to Respond to Plaintiffs Interrogatories and Requests for Production (Doc. 28). Defendant has filed a response to Plaintiffs motion to strike and motion to compel (Doc. 33).

Defendant contends that, despite its best efforts to accommodate Plaintiffs requests for extensive discovery into matters which are not relevant in this litigation, it must seek protection from the court because Plaintiff continues to request production of, inter alia, “personnel files of every Lincoln employee involved in the evaluation of Plaintiffs claim for benefits and all testimony provided in the last five (5) years by any person involved in the claims and appeals process.” Def.’s Mot. (Doc. 25). In her response in opposition to Defendant’s motion, Plaintiff elucidates what appears to be the parties’ fundamental disagreement about the scope of permissible discovery in ERISA cases, and argues that Defendant’s repeated general and specific objections to her discovery requests should be stricken because De[1242]*1242fendant has failed to “satisfy its burden to explain how these objections apply to each request and its failure to provide any information or explanation in support of these objections even to the point of ignoring [Plaintiffs] Counsel’s repeated pleas[.]” PL’s Resp. (Doc. 29) at 8. Nevertheless, in an effort to “ ‘move the ball,’ ” Plaintiff appears to narrow the issues in dispute by seeking “a ruling on specific discovery requests!.]” Id. at 4. Namely, Plaintiff seeks an order compelling Defendant to fully respond, to Interrogatory Numbers Two, Eight, Nine, and Eleven, and Requests to Produce Numbers Three, Nine, Ten, and Fifteen. Following a brief summary of the law governing discovery in ERISA cases, the court will address each item of discovery identified by Plaintiff.

Judge DuBose of the Southern District of Alabama addressed the scope of discovery in ERISA cases as follows:

“Discovery in an ERISA disability case is permissible on a limited basis, with focus on the claim administrator’s decision-making.” Ricard v. International Business Machines Corp., 2012 WL 1131996, *1 (M.D.Fla. Apr. 4, 2012). “Rule 26(b)(1) permits parties to a civil case to conduct discovery regarding any matter, not privileged, that is relevant to the claim or defense of any party in the ease. Like most discovery disputes, then, in this ERISA case, the scope of discovery will hinge on whether the discovery sought by the plaintiff is relevant to the ‘claim or defense of any party.’ ” Featherston [v. Metropolitan Life Ins. Co.], 223 F.R.D. [647], 651 [ (N.D.Fla.2004)]. “The standard of review in an ERISA case will dictate what facts or evidence the plaintiff must prove in order to successfully claim an entitlement to benefits under the terms of an employee benefit plan. Therefore, the applicable standard of review will also shape the permissible scope of discovery in ERISA cases.” Id. ERISA provides no standard for courts ■ reviewing the benefits decisions of plan administrators or fiduciaries; thus, the Supreme Court established guidance for same in Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 109, 109 S.Ct. 948, 103 L.Ed.2d 80 (1989) and Metropolitan Life Ins. Co. v. Glenn, 554 U.S. 105, 128 S.Ct. 2343, 171 L.Ed.2d 299 (2008). More recently, the Eleventh Circuit has reiterated a multi-step framework to guide lower courts when reviewing a plan administrator’s benefits decision. This framework consists of the following “six-step expanded Firestone ” test:'
(1) Apply the de novo standard to determine whether the claim administrator’s benefits-denial decision is “wrong” (i.e., the court disagrees with the administrator’s decision); if it is not, then end the inquiry and affirm the decision.
(2) If the administrator’s decision in fact is “de novo wrong,” then determine whether he was vested with discretion in reviewing claims; if not, end judicial inquiry and reverse the decision;
(3) If the administrator’s decision is “de novo wrong” and he was vested with discretion in reviewing claims, then determine whether “reasonable” grounds supported it (hence, review his decision under the more deferential arbitrary and capricious standard).
(4) If no reasonable grounds exist, then end the inquiry and reverse the administrator’s decision; if reasonable grounds do exist, then determine if he operated under a conflict of interest.
(5) If there is no conflict, then end the inquiry and affirm the decision. .
(6) If there is a conflict, the conflict should merely be a factor for the court to take into account when determining [1243]*1243whether an administrator’s decision was arbitrary and capricious.
Blankenship v. Metropolitan Life Ins. Co., 644 F.3d 1350, 1355 (11th Cir.2011) (citing Capone v. Aetna Life Ins. Co., 592 F.3d 1189, 1195 (11th Cir.2010) and Williams v. BellSouth Telecomms., Inc., 373 F.3d 1132, 1137 (11th Cir.2004), overruled on other grounds by Doyle v. Liberty Life Assurance Co. of Boston, 542 F.3d 1352 (11th Cir.2008)). All steps of the analysis are ‘potentially at issue’ where a plan vests discretion to the plan administrator to make benefits determinations. See id. at 1356 n. 7.

Melech v. Life Ins. Co. of N. Am., 857 F.Supp.2d 1281, 1283-84 (S.D.Ala.2012).

Defendant acknowledges that a conflict of interest within the meaning of the above cited cases exists in this case. See Def.’s Mot. (Doc. 25) at 2; .Def.’s Resp. (Doc. 33) at 3-4. In pertinent part, where such a conflict of interest exists, “it is appropriate to permit discovery related to the conflict of interest because if it is necessary for the court to consider that factor, the court must weigh the varying circumstances of its existence and extent.” Moore v. Metropolitan Life Ins. Co., 2011 WL 2559627, *5 (M.D.Ala.2011). Although this does not “mean unlimited discovery,” id., it entitles the party seeking to discovery to some inquiry into subject matters which may be beyond the scope of the administrative record which was utilized in rendering the claimant’s decision. See Harvey v. Standard Ins. Co., 787 F.Supp.2d 1287, 1292 (N.D.Ala.2011) (remarking, “if a conflict of interest is present ..., then the plaintiff should not be limited to the Plan’s assertion that any such conflict did not affect the claim decision”). In Harvey, for example, the district court permitted conflict-of-interest discovery into a litany of areas, including

whether the plan was or was not funded by stop-loss insurance or another policy, it was.

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Related

Marcia Williams v. BellSouth Telecommunications
373 F.3d 1132 (Eleventh Circuit, 2004)
Capone v. Aetna Life Insurance
592 F.3d 1189 (Eleventh Circuit, 2010)
Firestone Tire & Rubber Co. v. Bruch
489 U.S. 101 (Supreme Court, 1989)
Metropolitan Life Insurance v. Glenn
554 U.S. 105 (Supreme Court, 2008)
Blankenship v. Metropolitan Life Insurance
644 F.3d 1350 (Eleventh Circuit, 2011)
Harvey v. Standard Insurance
787 F. Supp. 2d 1287 (N.D. Alabama, 2011)
Melech v. Life Insurance Co. of North America
857 F. Supp. 2d 1281 (S.D. Alabama, 2012)

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Bluebook (online)
107 F. Supp. 3d 1240, 2015 U.S. Dist. LEXIS 69442, 2015 WL 3452540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/till-v-lincoln-national-life-insurance-almd-2015.