A New Precedent For ERISA Denial-Of-Benefits Rewards

On Dec. 6, 2013, a divided panel of the United States Court of Appeals for the Sixth Circuit held that a plaintiff challenging a denial-of-benefits decision can recover both the denied benefits and disgorgement of any profits made on that amount. See Rochow v. Life Insurance Co. of North America, No. 12-2074 (6th Cir. Dec. 6, 2013). By providing what appears to be a dual award for the same injury, the majority’s decision represents a dramatic departure from existing precedent precluding such awards. A dissenting opinion made exactly this point, noting that the majority opinion represents “an unprecedented and extraordinary step to expand the scope of ERISA coverage.”