U.S. Supreme Court Case Summaries: June 26, 2008

U.S. Supreme Court

ERISA

Disability

Metropolitan Life Insurance Co. v. Glenn

No. 06-923

Certiorari to the Sixth Circuit

Background: The petitioner is an administrator and insurer of the Sears disability plan, which gives MetLife discretionary authority to determine the validity of an employee's benefits claim and states MetLife also will pay the claims. The respondent, diagnosed with a heart condition, had her claim denied as it was found she could perform sedentary work. The Sixth Circuit used a deferential standard of review and considered it a conflict of interest that MetLife both determined eligibility for benefits and paid the benefits out of its own pocket. Based on a combination of this conflict, it set aside MetLife's benefits denial.

Ruling: The circuit court's judgment is affirmed. The court properly reviewed the case and took note of the serious questions raised by the conflict of interest.

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