Hardy v. Unum Life Insurance Company of America

Background

Mark W. Hardy sued Unum Life Insurance Company of America under the Employee Retirement Income Security Act of 1974 (ERISA), claiming that Unum improperly terminated his long-term disability benefits. In September 2024, the court ruled that Unum had improperly terminated the benefits after Hardy was diagnosed with and treated for multiple myeloma. The court ordered Unum to reinstate the benefits, pay benefits retroactively to the termination date, and pay reasonable attorney’s fees, costs, and prejudgment interest.

The court later awarded Hardy $93,565 in attorney’s fees and $450 in costs and directed the parties to calculate the benefits and prejudgment interest owed. The parties disagreed about the calculations and submitted separate positions instead of a joint proposed judgment.

Issues and Parties’ Positions

Unum paid Hardy $90,445.98 on November 3, 2025, for retroactive benefits covering December 11, 2020, through September 1, 2024. Unum argued that this payment satisfied the earlier order. Hardy asked the court to require Unum to provide its calculations so he could assess their accuracy.

The parties agreed that 4.37 percent was the appropriate interest rate for the retroactive benefits. They disagreed about whether Hardy was entitled to benefits after September 1, 2024. Unum argued that the earlier order did not expressly award prospective benefits and that there was no evidence in the record showing ongoing disability after that date. Unum also argued that benefits for 2025 should be reduced based on an anticipated bonus equal to Hardy’s 2024 bonus.

Hardy argued that the earlier order requiring Unum to reinstate his benefits entitled him to prospective benefits. He also argued that the policy allowed benefit adjustments only after he provided proof of his earnings quarterly, not based on an estimated bonus.

Court’s Analysis

The court found that Unum complied with the relevant part of the September 2024 order by paying Hardy $90,445.98. Because the parties agreed on the interest rate, the court held that 4.37 percent applied to the retroactive benefits.

The court interpreted the earlier order’s direction to reinstate Hardy’s long-term disability benefits as awarding prospective benefits, in addition to the separately ordered retroactive benefits. The court also relied on its earlier conclusion that Hardy did not have an ongoing duty to prove his disability. It therefore ordered Unum to pay benefits from September 2, 2024, forward, until Unum determines that Hardy is no longer disabled under the policy.

For September 2 through December 31, 2024, the court awarded Hardy the higher amount submitted by Unum: $11,027.12 in benefits and $543.07 in interest. For January 1 through September 1, 2025, the court rejected Unum’s proposed prospective reduction based on an estimated bonus. The policy required Hardy to provide proof of monthly earnings quarterly, and allowed Unum to adjust payments upon receiving that proof. The court held that the policy did not allow Unum to estimate the bonus and reduce benefits in advance.

Order

The court ordered that:

- Unum complied with the September 2024 order by paying $90,445.98 in retroactive benefits for December 11, 2020, through September 1, 2024. - A 4.37 percent interest rate applies to those retroactive benefits. - Hardy is entitled to benefits from September 2, 2024, continuing until Unum determines that he is no longer disabled under the policy. - Hardy is entitled to $11,027.12 in benefits and $543.07 in interest for September 2 through December 31, 2024. - Benefits for January 1 through September 1, 2025 may not be prospectively reduced based on Hardy’s estimated 2025 bonus. Any adjustment may be made only after Unum receives proof of Hardy’s earnings.