Long Term Disability Insurance claims are usually governed under federal ERISA regulations. If a claimant goes through the administrative appeals process and is denied their disability benefits, their only remedy is to file a civil lawsuit to enforce their rights under the policy. This leads to several important questions. In part one of this two part blog we explored who can sue and who can be sued. In part two we explore where to file your lawsuit and how long you have to get the suit on file.
Where Can I File My Lawsuit?
ERISA states you may file your lawsuit in one of four places:
a. Where the Plan is administered
b. Where the breach occurred
c. Where the defendant resides
d. Where a defendant may be found
The plaintiff’s choice of venue is given great deference by the courts. In benefit denial cases, the courts generally conclude that the breach of contract occurs where the benefits are to be received. Practically speaking, this means you may file your lawsuit where you live or expect your benefit checks to be delivered. You may file an ERISA case in either state or federal court, but invariably the defendant will remove (transfer) your case to federal court based on federal issue jurisdiction.
For a free legal consultation, call 800-562-9830
How Long Do I Have to Sue?
All potential claims for which a lawsuit could be filed have deadlines for filing suit. These deadlines are known as the “Statute of Limitations.” Your lawsuit must be filed prior to the expiration of the appropriate statute of limitations or your claim is lost forever. This is an absolute. One day late and your claim is gone, PERMANENTLY. Oddly, ERISA provides for no statute of limitations directly, so instead you must look to each individual state for the appropriate deadline. Most courts apply a breach of contract statute of limitations to a benefit denial claim under ERISA. In Texas, for example, the deadline would be four (4) years from the date of breach or denial. This varies from state to state. However, the insurance plan or policy may shorten the deadline pursuant to the terms of the plan. It is vital that you check your plan documents for any pending deadlines. Many plans shorten the deadline to three (3) years from the date proof of disability must be provided. Some plans have much shorter deadlines. Most major insurance carriers such as Unum, MetLife, Cigna and Aetna limit the time a claimant has to file their suit but always check the policy to make sure.
If you have questions, ask disability attorney, Marc Whitehead by visiting disabilitydenials.com or you can download Marc Whitehead’s free E-book, Disability Insurance Policies-How to Unravel the Mystery and Prove Your Claim.
Call or text 800-562-9830 or complete a Free Case Evaluation form
