JUNE 2009 BAD FAITH CASES
INSURED’S CLAIM SUBJECT TO ERISA AS BENEFITS ADMINSTRATION AT ISSUE (Philadelphia Federal)
In Trabucco v. UNUM Life Insurance Company, the insurer removed the case to federal court from the Court of Common Pleas of Philadelphia. The insured sought a remand of its claims, including a statutory bad faith claim. The Court found that the action was pre-empted by ERISA as the administration of benefits was at the core of the claims, and retained jurisdiction. The Court’s decision was controlled by the Third Circuit’s ruling in Pryzbowski v. U.S. Healthcare, Inc., 245 F.3d 266 (3d Cir. 2001).
Date of Decision: April 24, 2009