Chicco v. First UNUM Life Insurance Company

Background

Michelle Chicco worked as a tax manager for D.E. Shaw & Co., L.P. Through her employer, she received long-term disability insurance under a plan issued by First Unum Life Insurance Company. After developing back pain, fatigue, and weakness, Chicco stopped working in May 2018 and submitted a disability claim. First Unum initially approved the claim.

Chicco tried to return to work part time in November 2018 and full time in December 2018, but her symptoms worsened. She eventually stopped working again in March 2019. First Unum later determined that she was no longer disabled as of December 17, 2018, the date she initially returned to full-time work. First Unum upheld that decision on administrative appeal on August 31, 2020.

Chicco then sued under the Employee Retirement Income Security Act, a federal law governing many employee-benefit plans. The parties agreed to have the case decided on a stipulated record, largely consisting of the materials First Unum had considered on appeal. In its March 3, 2022 ruling, the court found that Chicco had been disabled under the plan since December 17, 2018.

Motion for reconsideration

First Unum moved for reconsideration, a request asking the court to correct or clarify an earlier ruling. It asked the court to clarify that the March 3 finding did not determine Chicco’s disability status after August 31, 2020, when the administrative record closed.

Chicco argued that the record supported a finding of continuing disability through the date of judgment. She relied on the progressive nature of her symptoms and a doctor’s statement that she was totally and permanently disabled. The court noted, however, that the record also contained evidence that her symptoms might have been worsened by pregnancies during which she stopped taking medication. The court concluded that the evidence established disability during the period covered by the record, but did not establish with the same level of certainty that she would remain disabled afterward if properly treated.

The court also rejected Chicco’s argument that First Unum’s motion was procedurally improper. Although reconsideration generally cannot be based on an argument that could have been made earlier, the court found that First Unum had little reason to anticipate that the March 3 judgment might extend beyond the administrative record. First Unum raised the issue before damages and attorney’s fees were determined.

Ruling

Judge Denise Cote granted First Unum’s March 17, 2022 motion for reconsideration. The court held that its disability finding was limited to the period covered by the administrative record, which ended on August 31, 2020. It remanded Chicco’s claim to First Unum to determine whether she qualified for benefits since that date. The opinion did not itself decide whether Chicco qualified for benefits after August 31, 2020.