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Plan Participant Waived Remedy for Untimely Benefits Determination
Wednesday, February 28, 2018

The Seventh Circuit rejected a disability plan participant’s argument that an untimely decision denying his claim for long-term disability benefits warranted changing the standard of review from arbitrary and capricious to de novo.  In so ruling, the Court explained that had plaintiff filed suit once the time for a timely decision had passed (because his claim was deemed exhausted under applicable regulations), rather than pursue an administrative appeal, the court would have considered an appropriate remedy, e.g., whether the claim should be reviewed de novo.  By pursuing an administrative appeal, the Court concluded that the participant waived his right to a remedy for an untimely decision.  The case is Dragus v. Reliance Standard Life Ins. Co., No. 17-1752, 2018 WL 851164 (7th Cir. Feb. 14, 2018).

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