William Potthoff v. Unum Life Insurance Company of America, et al.

CourtDistrict Court, W.D. Michigan
DecidedJanuary 22, 2026
Docket1:24-cv-00991
StatusUnknown

This text of William Potthoff v. Unum Life Insurance Company of America, et al. (William Potthoff v. Unum Life Insurance Company of America, et al.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Potthoff v. Unum Life Insurance Company of America, et al., (W.D. Mich. 2026).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

WILLIAM POTTHOFF,

Plaintiff, Case No. 1:24-cv-991 v. Hon. Paul L. Maloney UNUM LIFE INSURANCE COMPANY OF AMERICA, et al.,

Defendants. ________________________________/ OPINION Now before the Court is Plaintiff William Potthoff’s Motion for Judgment on the Administrative Record and for Declaratory Relief (ECF No. 21). The Court has reviewed the parties’ briefings and over five thousand pages in the administrative record. For the reasons that follow, the Court will grant Potthoff’s motion. I. BACKGROUND Plaintiff William Potthoff worked as a general and vascular surgeon for over twenty- five years in Traverse City, Michigan. For most of his career, he suffered from back pain. In January 2018 his clinic closed, and Potthoff started to look for a new job. But seven months into his search, his back pain worsened to the point where he could no longer work, and so he applied for total disability benefits. Up until that point, Potthoff only received residual disability benefits because, although he could still perform surgery, his doctors recommended that he work at a reduced schedule. Unum and Provident insure Potthoff for occupational disability.1 They granted his application for total disability, but they categorized his back pain as a result of “sickness” instead of “injury.” Back pain from “sickness” only entitled Potthoff to forty-two months of

total disability given that the disability began between his sixty-second and sixty-third birthday. Back pain from an “injury” would have entitled him to benefits for the rest of his life. Unum and Provident had never determined the exact cause of Potthoff’s back pain when he received residual benefits: they did not need to. Residual benefits would have paid out until Potthoff’s sixty-fifth birthday regardless of the cause. So when Potthoff applied for

total disability, Unum and Provident needed to determine—for the first time—a cause: injury or sickness. ( Admin. Rec. Ex. B14 235, ECF No. 12-15.) The policy defines “sickness” as a “sickness or disease which is first manifested while [the] policy is in force,” and an “injury” as an “accidental bodily injur[y] occurring while [the] policy is in force.” (Corr. Mot. for J. Ex. 2 14, ECF No. 12-3.) If a disability is caused by both an injury and a sickness, then the insurer pays according to whichever cause gives the

greater benefit.2 ( at 16, 20.)

1 It is not always clear from the record which defendant—Provident or Unum—is administering the claims. Sometimes the companies share their names in letterhead and other times the letterhead might name one defendant while the letter itself refers to actions taken by another. The Court has done its best to identify the specific party when possible, but its decision to attribute an action to a given party should not be understood as an official finding of fact. These attributions are instead only a shorthand for actions taken by whichever defendant seems to be administering Potthoff’s claims in a given moment. 2 This language is the same for residual and total disability. Specifically, the policy says: In no event will you be considered to have more than one disability at the same time. The fact that a disability is caused by more than one Injury or Sickness or from both will not matter. We will pay you benefits for the disability which provides the greater benefit. (Corr. Mot. for J. Ex. 2 16, 20.) Potthoff first sought treatment for back pain in February 1995.3 One morning, he woke up with severe back pain after turning in bed, so he decided to go to the hospital. (Admin. Rec. Ex. B1 119, ECF No. 12-2.) Potthoff denied any medical or family history of

back pain except for his older brother, who also suffered from it.4 ( at 119.) An MRI revealed “no fractures” and a “moderate sized left sided L5-S1 disc herniation.” ( at 111.) There was no evidence of an extruded fragment. ( ) Over the next year, Potthoff was able to return to work at a full-time capacity through a combination of rest and medication. (Admin. Rec. Ex. B3 52, ECF No. 12-4.)

Potthoff sought treatment for his back a second time in December 1996. Once again, he had woken up with back pain. (Admin. Rec. Ex. B2 150, ECF No. 12-3; Admin. Rec. Ex. B1 112.) But this time, he had slipped and fallen a few weeks earlier. The attending physician, Dr. Vincent Prusick, noted: Dr. Potthoff is in for evaluation of his back and left leg sciatica. This has been an ongoing problem of two weeks[‘] duration. It apparently came without any distinct precipitating episode . He had been having some low-grade problems with his back over the preceding two weeks. He had a difficult time [ ] even operating last week, [and,] therefore, he has canceled much of his operative schedule. (Admin. Rec. Ex. B1 112 (emphasis added).)

3 Some medical records say that Potthoff first began to have back pain a year earlier in 1994. (See Admin. Rec. Ex. B18 250, ECF No. 12-19 (collecting references to back pain in 1994).) The most convincing example is from Potthoff’s 1997 visit with Dr. Richard Ball, where Dr. Ball describes in his notes that Potthoff’s condition began without a “clear-cut precipitating event” after a severe episode of pain in 1994, the year before Potthoff first sought treatment. (Admin. Rec. Ex. B3 56.) The parties argue over the meaning of this note. But its importance is discounted by the fact that there are no records that Potthoff ever sought treatment for back pain in 1994. 4 Potthoff elaborates on his family history in his affidavit: “[W]hile I have had family members who have suffered traumatic back injuries, I have no family history of disc sickness or disease. I had one brother who suffered disc rupture while parachuting as a Green Beret and another brother who suffered a disc injury while lifting heavy industrial equipment.” (Admin Rec. Ex. B17 293 ¶ 10, ECF No. 12-18.) Potthoff had another MRI. Dr. Prusick noted that there did not appear to be any signs of free fragments. ( ) The radiologist compared this MRI to the one a year earlier. According to their notes, there were “some degenerative changes” but his herniated disc was

“less pronounced,” suggesting “some interval healing.” (Admin. Rec. Ex. B2 at 130.) Potthoff rested and returned to work at a reduced schedule as recommended by Dr. Prusick. Potthoff applied for residual disability benefits in light of his reduced schedule. In his application, he listed the cause of disability as an “accident.” (Admin. Rec. Ex. B2 181). Dr. Prusick signed a statement in support of Potthoff’s application. In it, he said Potthoff

suffered from a “lumbar disc herniation” and that his back pain developed “spontaneous[ly].” ( at 184). An insurance agent first reported the claim to Provident as a “back injury.” ( at 190.) A few weeks later, a claims representative called Potthoff to discuss his claim. The claims representative asked Potthoff if he agreed that his condition was more likely a result of sickness than an accident:

He states there was not an acute episode on 12/12/96 and agrees this is due to a degenerative process which began approximately 2 years ago for which he received NDI benefits. He was not sure how to respond on the form. . In 12/96 he had been having acute back pain which was not unusual. However, on Monday 12/9/96 he woke up with increased pain. ( at 179 (emphasis added).) Still, there is no official determination in the record at this point whether Potthoff qualified for residual benefits as a result of “injury” or “sickness.” Potthoff began to receive residual benefits in December 1996. Two years later, Provident stopped making payments. According to Provident, Potthoff was able to work at full capacity, but he chose not to. Potthoff appealed Provident’s decision. During the appeal, Dr.

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