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Case at a Glance
- Case Name: Sherry Evans-Carmichael v. Liberty Mutual Group Inc.
- Court: US District Court for the District of New Mexico
- Date of Decision: April 4, 2017
- Type of Claim: Short-Term Disability and Supplemental Disability Benefits
- Insurance Company: Liberty Mutual Group Inc.
- Claimant’s Employer: Los Alamos National Laboratory (“LANL”).
Background
The plaintiff first sued in New Mexico state court for breach of contract, bad faith, and violations of the New Mexico Insurance Code. Liberty Mutual removed the case to federal court, arguing ERISA preemption.
The Dispute
Which policy governs the claim? Liberty said the LANS Group Disability Policy applies and is an ERISA plan. The plaintiff said the University of California (UC) Supplemental Disability Policy applies, which is a governmental plan exempt from ERISA. That choice determines jurisdiction.
Key Facts
LANL management shifted from UC to LANS on June 1, 2006. The plaintiff filed a disability claim in February 2006; it was denied in April 2006 under the UC policy. She kept pursuing the same claim after June 1, 2006. Liberty later created a “new” claim with an August 11, 2006 disability date under the LANS policy. The parties disagree on which policy actually controls.
Court’s View
The court treated everything as one continuous claim that began in February 2006 and was denied under the UC policy. There was no evidence the plaintiff filed a new claim after June 1, 2006—only continued appeals/correspondence on the original denial.
Holding
Because the UC policy is a governmental plan exempt from ERISA, the federal court lacked subject-matter jurisdiction and remanded the case to New Mexico state court.
Here is a copy of the decision in PDF: Evans-Carmichael v. Liberty
Disclaimer: This case was not handled by Ortiz Law Firm; it is summarized for educational purposes about how courts treat long-term disability disputes.
