International Paper Loses Disability Case Appeal

Law360, New York (June 13, 2007, 12:00 AM EDT) -- An appellate court on Tuesday upheld a lower court ruling that International Paper Co.’s denial of long term disability benefits to a former employee constituted an abuse of discretion, affirming the district court’s $68,000 award in the case.

The U.S. Court of Appeals for the Fourth Circuit ruled that the paper maker’s procedure for evaluating former paper reel operator Sampson McKoy Jr.’s claims for longterm disability benefits were unreasonable. According to court documents, McKoy reapplied for benefits three times after he tore his rotator cuff and...
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