OCTOBER 2009 BAD FAITH CASES BAD FAITH CLAIM PREEMPTED BY ERISA (Middle District)

In Hillard v. Prudential Insurance Company of America, after Prudential terminated Plaintiff’s short-term disability benefits, Plaintiff sued Prudential for enforcement of benefits under the Employee Retirement Income Security Act of 1974 (ERISA) and bad faith pursuant to 42 Pa. C.S.A. §8371. The Court granted Prudential’s motion for summary judgment on Plaintiff’s bad faith claim holding that a claim for bad faith under Pennsylvania state law is preempted by ERISA.

Date of Decision: September 18, 2009

Hillard v. Prudential Insurance Company of America, U.S. District Court, Middle District of Pennsylvania, Civil Action No. 3:08cv905, 2009 U.S. Dist. LEXIS 85753 (M.D. Pa. September 18, 2009)(Munley, J.)