Prudential’s Disability Benefits Denial Rejected as ‘Catch 22'

Prudential Insurance Co. of America owes disability benefits to a former Foley Industries Inc. employee who says he was terminated in connection with his disabling medical conditions.

Prudential’s interpretation of the disability policy covering Joseph Kennedy “borders on frivolous,” because it would “completely deny any benefits” to employees who resign, are fired, or shift to part-time work in connection with their disabilities, according to a Wednesday opinion by Judge Eric F. Melgren.

“If the Court adopted Defendants’ view, all claims brought by employees in those situations would automatically fail, regardless of when they were brought,” Melgren said.

Kennedy worked ...