6th Circ. Rejection Of Disgorgement Brings ERISA Relief

Law360, New York (April 8, 2015, 10:11 AM EDT) -- Last year, we reported on the panel decision from Rochow v. Life Insurance Company of America, in which the Sixth Circuit affirmed a disgorgement award under Employee Retirement Income Security Act § 502(a)(3) totaling almost $3.8 million, in addition to requiring the insurer to pay individual disability benefits under § 502(a)(1)(B).[1] The panel opinion was noteworthy because damages in ERISA claims for benefits have long been limited to the benefits at issue, plus possibly interest and attorneys' fees. Thus, the panel opinion dramatically expanded the type of relief available to those who claimed their ERISA benefits were improperly denied. However, on rehearing en banc, Judge David McKeague, who previously issued a dissenting opinion on the panel decision, delivered the majority opinion vacating the disgorgement award, while remanding to the district court for consideration of whether prejudgment interest is warranted under ERISA § 502(a)(1)(B).[2]...

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