Federal Judge Orders Unum to Pay Denied Claimant’s Legal Fees

On March 18, Judge Christina Snyder of the U.S. District Court for the Central District of California ordered Unum Life Insurance Co. of America to pay $119,000 in attorney fees to Tanya Mondolo.

The amount that Mondolo originally asked for was $135,000 while Unum argued that they should only have to pay $50,000, as they believed that Mondolo’s figure was based on an inflated hourly rate.

There were five factors that Judge Snyder considered and found to apply when determining whether or not Unum would be forced to pay Mondolo’s attorney fees: “(1) the degree of the opposing party’s culpability or bad faith; (2) the ability of the opposing party to satisfy an award of fees; (3) whether an award of fees against the opposing party would deter others from acting under similar circumstances; (4) whether the party requesting fees sought to benefit all participants and beneficiaries of an ERISA plan or to resolve a significant legal question regarding ERISA; and (5) the relative merits of the parties’ positions.”

“As plaintiff points out, the court found that Unum acted irrationally and illogically when it denied benefits, and in the context of this case, that conduct is culpable,” Snyder wrote in her ruling.

She added that “awarding fees in this case reinforced the federal policy in favor of holding benefit claim administrators to a high standard of integrity.”

On January 16, 2013, Judge Snyder ruled in favor of Tanya Mondolo in her lawsuit against Unum that the giant disability company had wrongfully denied her benefits under the Employee Retirement Income Security Act of 1974.

In the January ruling, Mondolo was awarded retroactive benefits plus interest from the date she was denied benefits to the date of the ruling. Mondolo suffered from fibromyalgia and a form of necrosis that was attacking her bones as well as depression. Unum denied her disability claim based on their conclusion that she could take a job that required sitting, failing to acknowledge that she suffered from too much pain and was too weak even for prolonged sitting.

Judge Snyder found that Unum did not do a fair and proper review of her case to determine if she still qualified for benefits. She argued that Unum “failed to adequately investigate plaintiff’s claim,” and that “Unum acted illogically and irrationally” when they did not take the review of what Mondolo’s doctor said she was capable of in terms of work, as well as when they decided to terminate benefits.

Unum has been sued over 500 times due to denying benefits to its customers over the last three years.

Mondolo’s Unum Claim Denial Lawsuit case is Tanya Mondolo v. Unum Life Ins. Co. of America, Case No.11-cv-7435, U.S. District Court for the Central District of California.

If you or someone you now has had a similar experience as Tanya Mondolo and has been denied benefits by Unum Life Insurance Co. of America, legal options are available. Learn more and get a free legal consultation regarding a claim’s eligibility at the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation. Experienced legal professionals are available to determine if you have case, so act now.