Elliott Greenleaf Wins Dismissal of State and Federal Claims in Significant Post-Davila Decision
In a highly significant decision, on October 13, 2004, the Honorable James M. Munley of the United States District Court for the Middle District of Pennsylvania granted Elliott Greenleaf' motion to dismiss claims for breach of fiduciary duty, bad faith, punitive damages, and attorney's fees and costs. (Dunleavy v. Aetna Life Insurance Company, et al., (M.D. Pa., 3:03cv2400). Plaintiff had instituted a multi-pronged cause of action against the defendant based on an alleged denial of long term disability benefits under the Employee Retirement Income Security Act ("ERISA").
Judge Munley agreed with Elliott Greenleaf that the Plaintiff's claims for breach of fiduciary duty pursuant to ERISA §502(a)(3) and bad faith pursuant to 42 Pa.C.S.A §8371 were legally defective, and likewise rejected Plaintiff's attempts to recover punitive damages and attorney's fees and costs. With regard to Plaintiff's breach of fiduciary duty claim, Judge Munley agreed with Elliott Greenleaf that Plaintiff failed to state a claim because Plaintiff sought solely to recover benefits that were allegedly owed under the plan.
In a noteworthy ruling that marked a departure from a prior decision on the issue, Judge Munley also dismissed Plaintiff's bad faith claim. The District Court accepted Elliott Greenleaf position, and relying on the recent landmark decisions in Aetna Health v. Davila, 124 S.Ct. 2488 (2004) and Barber v. Unum Life Ins. Co. of America, 2004 WL 1964500 (3d Cir. Sept. 7, 2004), found that Plaintiff's bad faith claim cannot survive because it is preempted by ERISA. Because Judge Munley found Plaintiff's bad faith claim was preempted by ERISA, he also dismissed Plaintiff's request for punitive damages. Elliott Greenleaf' Kathryn M. Schilling represented the defendant in this matter. |
Bruce L. Castor Joins Elliott Greenleaf Law Firm
