July 25, 2019 / 12:57 AM / 6 months ago

4th Circuit says counseling firm was an ERISA fiduciary

A U.S. appeals court on Wednesday ruled that a mental health and substance abuse service provider was acting as a fiduciary under federal employee benefits law when it misinformed a worker, and later his widow, about his life insurance benefits.

A unanimous three-judge panel of the 4th U.S. Circuit Court of Appeals revived a lawsuit by Rema Dawson-Murdock claiming National Counseling Group Inc (NCG) violated the Employee Retirement Income Security Act of 1974 (ERISA) by failing to tell her husband he was no longer eligible for life insurance benefits when he became a part-time employee, and refusing to pay out a claim she filed after he died in 2016.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2K5cpzX

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