FEBRUARY 2013 BAD FAITH CASES: MAGISTRATE RECOMMENDS DENIAL OF PLAN BENEFICIARY’S BAD FAITH CLAIM AS PREEMPTED BY FEDERAL ERISA STATUTE (Middle District)

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In Terry v. Northrop Grumman Health Plan, the beneficiary of a life insurance plan, provided to her husband by his former employer, brought an action for bad faith against the plan administrator. The administrator moved to dismiss and the magistrate judge recommended granting the motion, reasoning that the federal ERISA statute preempts state-law bad faith claims. The magistrate’s R&R was later adopted by the district court.

Date of Decision: December 3, 2012

Terry v. Northrop Grumman Health Plan, NO. 1:12-CV-263, 2012 U.S. Dist. LEXIS 184112, U.S. District Court for the Middle District of Pennsylvania (M.D. Pa. Dec. 3, 2012) (Methvin, M.J.)

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