Fifth Circuit Clarifies Standard for Remanding ERISA Dispute to Plan Administrator

In Newsom v. Reliance Standard Life Ins. Co., the Fifth Circuit clarified when it is appropriate for a district court to remand an ERISA dispute to a plan administrator for development of a merits record. 26 F.4th 329 (5th Cir. 2022). James Newsom suffered from a variety of maladies, and in September 2017 his employer reduced his schedule to 32 hours per week. In October 2017, Newsom’s schedule again was reduced to 28 hours per week, and he stopped working entirely on January 30, 2018. After Newsom filed a claim for disability benefits, Reliance Standard, the claims administrator, determined that his date of disability was January 30, 2018, and since he was working less than 30 hours per week at that time, he was not a full-time employee and did not qualify for long-term disability coverage. After Newsom sued, the district court determined that Newsom’s date of disability was October 2017, that Newsom was a full-time employee as of that date, and that he was eligible for long-term disability coverage. Accordingly, and without further analysis, the district court awarded Newson long-term disability benefits.

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About Author: W. Glenn Merten

Glenn Merten, a sought-after litigator, represents insurance carriers, service providers and financial institutions in class actions, complex litigation and administrative proceedings. He is the co-leader of the firm’s ERISA litigation team and a member of both the Insurance and Benefits and Executive Compensation practice groups. With more than two decades of experience guiding clients through compliance issues and alternative dispute resolution, Glenn helps shield clients from the cost and risk of litigation. He often represents clients in high-stakes internal investigations and regulatory enforcement actions. View all posts by

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