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Honda Plan Wrong To Deny Disability Benefits: 9th Circ.

Law360 (March 9, 2011, 3:23 PM EST) -- The Ninth Circuit on Monday reversed a lower court's ruling that an American Honda Motor Co. Inc. disability plan administrator acted within its discretion when it denied a Honda employee disability benefits for his chronic fatigue syndrome.

In a 2-1 opinion, the U.S. Court of Appeals for the Ninth Circuit said that, although balancing the disability plan's discretionary authority against its inherent conflict of interest and incentive to deny the disability claim was difficult, the disability plan had abused its discretion by failing to meaningfully communicate...
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