Guardian Life Loses Loper Bright Argument in Disability Pay Suit

A business co-founder suing Guardian Life Insurance Co. of America for disability benefits after his leukemia diagnosis score a court order ensuring the company’s decision will face higher scrutiny at trial.

The recent demise of Chevron deference doesn’t call into question the Second Circuit’s practice of reviewing benefit denials under the Employee Retirement Income Security Act more strictly when the plan administrator flouts federal regulations governing benefit claims, Judge Jennifer L. Rochon said.

Rochon’s opinion, issued Nov. 22 in the US District Court for the Southern District of New York, considered the interplay of two court rulings: the US ...