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Walker v. American Home Shield Long Term Disability Plan

Citations: 180 F.3d 1065; 52 Fed. R. Serv. 657; 99 Cal. Daily Op. Serv. 4706; 23 Employee Benefits Cas. (BNA) 1219; 99 Daily Journal DAR 5981; 1999 U.S. App. LEXIS 13129; 1999 WL 387245Docket: No. 97-55503

Court: Court of Appeals for the Ninth Circuit; June 15, 1999; Federal Appellate Court

Narrative Opinion Summary

This case involves the review standard applicable to an ERISA-related insurance disability claim. The primary legal issue centers around whether the de novo review standard established in Firestone Tire applies equally to both plan interpretations and factual determinations when the plan does not explicitly grant discretionary authority to the administrator. Pamela Walker, the claimant, was initially awarded summary judgment by the district court, which found her totally disabled due to fibromyalgia. UNUM Life Insurance Company and American Home Shield Long Term Disability Plan appealed, arguing for a bifurcated standard of review and contesting the district court's admission of additional expert evidence. The appellate court reversed the district court's decision, emphasizing the de novo review standard's applicability across both factual and interpretative issues in the absence of discretionary authority granted to the plan administrator. The case was remanded for further proceedings due to the identification of genuine issues of material fact regarding Walker's disability status. This remand mandates a bench trial, consistent with prior rulings in Kearney. The appellate court deferred the decision on attorneys' fees and noted that each party would bear its own costs on appeal, highlighting the contentious nature of factual determinations in disability assessments under ERISA.

Legal Issues Addressed

Admission of Additional Medical Evidence

Application: The district court correctly admitted additional expert medical evidence to resolve conflicting testimony concerning the claimant's fibromyalgia.

Reasoning: The district court found the medical testimony regarding fibromyalgia to be unclear and conflicting, indicating confusion rather than equipoise in the evidence presented.

Appointment of Independent Expert Witnesses

Application: The court can appoint an independent expert under Federal Rule of Evidence 706(a) to clarify medical evidence in disability claims.

Reasoning: The court can appoint an expert sua sponte under Federal Rule of Evidence 706(a).

De Novo Review of Plan Administrator's Decisions

Application: The application of de novo review is confirmed for ERISA claims when a plan does not grant discretionary authority, rejecting bifurcated standards for factual and interpretative decisions.

Reasoning: The Supreme Court's ruling in Firestone, which established that a denial of benefits under 29 U.S.C. § 1132(a)(1)(B) should be reviewed de novo unless the plan explicitly grants discretionary authority to the administrator regarding eligibility or plan interpretation.

Remand for Further Proceedings

Application: The presence of genuine issues of material fact concerning disability necessitates a remand for a bench trial under ERISA.

Reasoning: Given the conflicting medical opinions, the court identified a genuine issue of material fact regarding Walker's disability status, necessitating a remand for further proceedings.

Standard of Review in ERISA Disability Claims

Application: The de novo standard of review applies to both plan interpretations and factual determinations when the plan does not grant discretionary authority to the administrator.

Reasoning: The appellate court reversed the summary judgment and remanded for further proceedings, referencing its earlier en banc decision in Kearney v. Standard Ins. Co.