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US court finds AT&T abused discretion in denying benefits to policyholder with CFS
Thursday 19 April 2012
Termination Based on Five Illogical Conclusions Lacking Factual Support
LOS ANGELES, April 4, 2012 /PRNewswire/ -- Kantor & Kantor, LLP announced today a legal victory in the U.S. District Court for the Northern District of California on behalf of client Judi Peterson, who suffers from Chronic Fatigue Syndrome (CFS), against the AT&T Umbrella Benefit Plan No. 1 ("AT&T"), administered by third-party administrator Sedgwick CMS. In reaching its decision, the District Court ruled that AT&T abused its discretion and wrongfully denied Ms. Peterson long-term disability benefits. The court found AT&T's benefits termination was illogical and without support in inferences that may be drawn from the facts.
In particular, the court determined that AT&T had abused its discretion five specific ways:
"This decision illustrates that policyholders cannot always rely on an 'unbiased' third-party administrator to make logical and fact-based benefits decisions," said Brent Dorian Brehm, a litigation associate at Kantor & Kantor and the lead trial attorney representing Ms. Peterson. "Denials must be carefully scrutinized, and if the conclusions appear unfair, incorrect, or ridiculous, they probably are."
For more information about Peterson v. AT&T Umbrella Benefit Plan No. 1, C-10-03097 JCS, follow this link: http://www.kantorlaw.net/Cases_Resources/Document_Library.aspx.
About Kantor & Kantor, LLP
Kantor & Kantor is one of the largest law firms in the country exclusively representing plaintiffs who have been denied insurance benefits under life, health, disability and long-term care policies. The firm has extensive experience with the complex appeals process and federal court litigation of ERISA matters, as well as the handling of Insurance Bad Faith matters. For more information, log on to www.kantorlaw.net, call (800) 446-7529, or follow the firm at www.californiainsurancelawyerblog.com.
SOURCE Kantor & Kantor, LLP
The above originally appeared here.
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