Hyundai, Liberty Life Can't Shake Claims By Disabled Veterans Challenging Offsets
January 07, 2015
Bloomberg BNA Pensions & Benefits Daily
(Jan. 7, 2015) A proposed class action accusing Liberty Life Assurance Co. of Boston and Hyundai Motor America of improperly offsetting the disability benefits of disabled veterans can proceed in part, although several claims against Liberty Life are subject to dismissal, the U.S. District Court for the Northern District of California held (Bush v. Liberty Life Assurance Co. of Bos., 2015 BL 869, N.D. Cal., No. 4:14-cv-01507-YGR, 1/2/15).
In a Jan. 2 ruling, Judge Yvonne Gonzalez Rogers found that certain of the veterans' claims against Liberty Life—including claims for equitable relief and failure to furnish certain documents—couldn't be brought against the insurer, because such claims were viable only against the designated plan administrator, which was Hyundai.
However, the court allowed several claims for equitable relief to proceed against both Liberty Life and Hyundai, finding that they were based on allegedly misleading omissions and therefore weren't impermissibly duplicative of the participants' claim for benefits.