Disability Insurance Blog

Court Rejects Met Life’s Effort to Deny Benefits Based Upon Release of Collateral Claim with Employer

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Friday, March 1st, 2013

A Federal Judge said no to Met Life, rejecting its effort to not only sustain its termination of a long term disability insurance claim, but its effort to recover over 500K that it had paid to a claimant, before it learned that the claimant had released his employer from various claims arising out of an employment discrimination case.

After Met Life had accepted the claim and released substantial benefits to the long term disability insurance claimant, it learned that the claimant had signed a release related to an age discrimination lawsuit against his employer. The release purported to release the employer and its agents, purportedly releasing any and all claims, which Met Life interpreted to mean the claimants Short Term Disability and Long Term Disability insurance claims.

The Court, in reviewing the release and the potential impact of the agreement, determined that the release did not extend to Met Life regarding the Short Term Disability or Long Term Disability benefits.

The Court thus remanded the claim for purposes of allowing Met Life to review the continued eligibility of the claimant for further benefits.

Kirby v. Siemens (Met life)