LeFebre v. Westinghouse Elec. Corp.

• Decision Date: 25 October 1982
• Docket Number: Civ. No. JH-79-496.
• Citation: 549 F. Supp. 1021
• Parties: Don C. LeFEBRE, Plaintiff, v. WESTINGHOUSE ELECTRIC CORP., Management Disability Benefits Plan; Westinghouse Electric Corporation; Metropolitan Life Insurance Company, A New York Corporation; and The Equitable Life Assurance Society of the United States, A New York Corporation, Defendants.
• Court: U.S. District Court — District of Maryland

549 F. Supp. 1021

Don C. LeFEBRE, Plaintiff, v. WESTINGHOUSE ELECTRIC CORP., Management Disability Benefits Plan; Westinghouse Electric Corporation; Metropolitan Life Insurance Company, A New York Corporation; and The Equitable Life Assurance Society of the United States, A New York Corporation, Defendants.

Civ. No. JH-79-496.

United States District Court, D. Maryland.

September 29, 1982.

Supplemental Opinion October 25, 1982.

COPYRIGHT MATERIAL OMITTED

John T. Ward, John C. Baldwin, and Ober, Grimes & Shriver, Baltimore, Md., for plaintiff.

Barrett W. Freedlander, Joseph T. Brennan, II, and Niles, Barton & Wilmer, Baltimore, Md., for defendants Westinghouse Elec. Corp., The Equitable Life Assur. Society of the United States, and Metropolitan Life Ins. Co.

Joseph G. Williams, Jr., New York City, for defendants Metropolitan Life Ins. Co. and The Equitable Life Assur. Society of the United States.

JOSEPH C. HOWARD, District Judge.

I. Introduction

Don C. LeFebre brought this action against Westinghouse Electric Corporation Management Disability Benefits Plan ("Plan"), Westinghouse Electric Corporation ("Westinghouse"), Metropolitan Life Insurance Company ("Metropolitan"), and The Equitable Life Assurance Society of the United States ("Equitable"), alleging violations of the Employee Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C. § 1001, et seq. Plaintiff asserted three distinct claims. First, that he was denied disability benefits to which he was entitled. Second, that defendants Westinghouse, Metropolitan, and Equitable breached their fiduciary duties. And third, that the three defendants should be fined for each day that they failed to comply with ERISA disclosure requirements. The Court has exclusive jurisdiction pursuant to Section 502(e) of ERISA, 29 U.S.C. § 1132(e).

A court trial was held on October 20-23, 1981. The Court's findings of fact and conclusions of law (not necessarily so denominated) here follow, as required by Rule 52(a) of the Federal Rules of Civil Procedure.

II. Background

In 1953, plaintiff, Don C. LeFebre, commenced employment as a technical writer with defendant Westinghouse. He continued to work for Westinghouse, assuming additional responsibilities, until November 1975, when he declared himself disabled, and his employment terminated. From 1961 onward, he developed and was employed in the audio-visual department, the function of which was to produce professional grade technical motion pictures. He was required to have professional level skills in cinematography, animation, film production, videotape and kinescope recording, editing and conforming, and film and tape instrumentation. The greater part of his work involved the use of sophisticated camera equipment to do aerial image animation work.

Plaintiff was insured under the Plan, and was at all times pertinent to this case eligible for benefits. The Plan is an employee welfare benefit plan within the meaning of Section 3(1) of ERISA, 29 U.S.C. § 1002(1). It was sponsored by Westinghouse, and underwritten by Metropolitan since at least September 1, 1969, and by Equitable since December 1, 1975, the latter having responsibility for adjudicating claims.

The Plan provided four benefits to management employees who became totally disabled: (1) the Disability Income Benefit, equal to sixty percent of the employee's basic monthly salary at the time of disability less any amount actually received from sources such as Social Security; (2) the Medical Benefit which paralleled the Westinghouse Insurance Plan; (3) the Pension Disability Supplement providing benefits based upon the Westinghouse Pension Plan; and (4) the Death Benefit providing benefits based upon the Westinghouse Insurance Plan. The Plan defined total disability as follows:

"Disability will be considered total as long as it prevents you from performing your regular job or any reasonably appropriate work within the Company, and as long as you do not engage in work for compensation or profit with another employer or in self-employment."

Westinghouse Electric Corporation, Management Disability Benefits Plan at 8. The Plan definition of disability sets forth the so-called "easy" test for disability. In contrast to the "hard" test which requires proof of a claimant's inability to engage in any occupation for which he is reasonably fitted by education, training, and experience, the Plan merely requires proof that the claimant is unable to perform his particular job.

In 1961, LeFebre learned that he had retinitis pigmentosa, a progressive, incurable disease of the retina, which at first reduces peripheral vision and ultimately results in blindness. The disease did not interfere with plaintiff's work until 1970-71, when he began to have problems using the sophisticated motion picture camera equipment necessary to his work. Because of the gradual narrowing of the visual field in both eyes, LeFebre experienced difficulty centering images; and, as a result, he filmed scenes which included unwanted, extraneous objects.

In April 1972, plaintiff was examined by the Westinghouse contract physician, Dr. Richard Susel, who indicated that at that time the plaintiff's illness had reached a moderately advanced stage, and in his April 10, 1972 report to Westinghouse stated that the plaintiff "compensates well for his visual disabilities and is apparently able to perform his usual work functions." On April 13, 1972, incidental to another matter, plaintiff notified Ben Vester, a Westinghouse manager, in writing that he might have to take an early disability retirement.

During 1972 and 1973, LeFebre's eye condition worsened, further limiting the range of camera equipment he could use and increasing the amount of time needed for each project. In March 1973, plaintiff inquired about available disability benefits. In September 1973, he was declared legally blind by Dr. Susel who also determined that plaintiff was still suffering from moderately advanced retinitis pigmentosa.

By 1974 and 1975, LeFebre was unable to perform the visual aspects of his job. He could not edit film, and he had difficulty reading background material in preparation for script writing. In the words of Charles Gillespie, the colleague who worked most closely with him, by late 1975 LeFebre's film making ability "came to a screeching halt." In September 1975, Ben Vester, the Westinghouse manager with whom plaintiff had communicated previously, informed him that he could not keep his management position indefinitely, but that a non-management position might be found for him. This would have resulted in a loss to plaintiff of his disability benefits under the Plan.

LeFebre's last day of work at Westinghouse was November 21, 1975. He declared himself disabled due to retinitis pigmentosa as of November 24, 1975. In a report dated March 5, 1976, Dr. Susel stated "that visual acuity has remained in relatively the same state as his last visit to me," and he felt at that time that the plaintiff was still suffering from moderately advanced retinitis pigmentosa. On May 11, 1976, Westinghouse removed LeFebre from the payroll retroactive to December 18, 1975. On or about May 18, 1976, plaintiff filed his statement of claim in which Dr. Susel indicated that LeFebre was totally disabled "for any occupation."

III. Denial of Disability Benefits

The record reveals various management memoranda circulating during June and July, 1976, indicating Westinghouse's intention to deny plaintiff's disability claim. On July 19, 1976, Howard Jenkner of the Westinghouse insurance office in Pittsburgh, forwarded plaintiff's claim to Michael Susarchick, manager at Equitable, with a letter stating that: (1) LeFebre's last day of work was December 1, 1975; (2) he "was able to perform all of his duties without difficulty"; (3) he "did not consult an eye specialist until February 18, 1976"; and (4) he could be performing his duties "if he had not committed murder." The last item is a reference to the fatal shooting by LeFebre on December 4, 1975, of his wife's lover, for which he was imprisoned. Jenkner also expressed doubt about the validity of plaintiff's claim.

The Court finds the aforementioned assertions provided by Westinghouse to Equitable to be inaccurate at best and false at worst. In fact (1) LeFebre's last day of work was November 21, 1975; (2) he was unable to perform most of his duties by the fall of 1975; (3) his eyes were examined by a Westinghouse physician as early as April 1972; and (4) the crime he committed on December 4, 1975, is irrelevant to the question of his ability to perform his duties.

On November 10, 1976, after plaintiff had begun receiving total disability benefits under Social Security, and after inquiries had been made by plaintiff's attorney concerning the status of his client's claim, Westinghouse notified plaintiff that Equitable had denied his claim, having found that plaintiff had been able to perform his duties prior to December 4, 1975.

The Court notes the following: plaintiff filed his claim with Westinghouse on approximately May 18, 1976; it was forwarded to Equitable on July 19, 1976; Susarchick decided to deny the claim in August 1976; and plaintiff was notified of the denial on November 10, 1976. Susarchick stated that the August-November delay was caused by the difficulty he had in obtaining a copy of plaintiff's murder trial transcript, and by his investigation of plaintiff's emotional condition in anticipation of a disability claim based on that ground.

Susarchick based his decision to reject plaintiff's disability claim on the following: (1) Howard Jenkner's letter of July 19, 1976; (2) Dr. Susel's report of April 1972; (3) the fact that in June 1974, and October 1975, plaintiff received "merit" increases; and (4) the fact that in December 1975, plaintiff was able to drive a car and fatally shoot another person.

After plaintiff's claim was denied, his lawyer unsuccessfully sought...