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Posts tagged "Rochow"

Sixth Circuit Expands Damages in ERISA Case

In December the Sixth Circuit Court of Appeals issued an opinion in Rochow v. Life Insurance Company of North America. Rochow, the president of a company, began experiencing short- term memory loss and other symptoms of illness in 2001 which led to him being demoted. The symptoms continued to interfere with his performance and he was forced to resign in 2002. Rochow filed a claim for long-term disability benefits and the Life Insurance Company of North America ("LINA") denied his claim and three appeals. Finally, Rochow filed a complaint in court against LINA and stated two claims under ERISA: one to recover benefits due and one to remedy the alleged breach of fiduciary duty. The district court found for Rochow concluding that LINA acted arbitrarily in denying his claim for disability benefits. After the Sixth Circuit affirmed the district court's decision in 2007, the district court awarded Rochow the unpaid benefits and found that LINA must disgorge of approximately $3.8 million in profits supposedly earned from the money that LINA failed to pay Rochow.