Lincoln National Benefit Spat Sows Discord Among 6th Cir. Judges

Lincoln National Life Insurance Co. properly moved a disability insurance lawsuit to federal court by pointing out that the plan participant could win more than $75,000 if his lawsuit was successful, the Sixth Circuit ruled.

Though James Heyman sought only about $31,000 in unpaid disability benefits, he also sought punitive damages and attorneys’ fees, the U.S. Court of Appeals for the Sixth Circuit said July 18. A “conservative 2:1 punitive-to-compensatory ratio” and assuming a 25% contingency fee “easily pushes” the amount in controversy above the $75,000 threshold for federal court jurisdiction, according to the unpublished opinion by Senior Judge Martha ...