How do you handle a claim supported only by “subjective” evidence?

Can you reject the claim outright?  No.  You must weigh the subjective evidence. That’s a key point highlighted in a recent case.

Miles v. Principal Life Insurance Company [pdf], __ F.3d __ (2nd Cir. June 26, 2013) (Merely pointing out that the evidence is subjective is not, by itself, a proper basis to reject evidence.)

This case also stands for the interesting proposition that a claimant with a history of “hard work” may be more credible…

FACTS: Miles, a real estate lawyer, stopped working in April 2009, claiming disability from ringing in the ears (tinnitus), hearing loss, headaches and vertigo. He made an ERISA disability claim.  The law firm benefits coordinator told Principal, the administrator, that Miles may have quit working for “other reasons[.]” Independent Medical Evaluators concluded Miles could work. Principal concluded Miles failed to present objective evidence of significant impairment. After his claim was denied, Miles sued and lost before the district court. He appealed.

Second Circuit HELD: REVERSED and Remanded to Administrator

  1. A reviewing court must determine whether the plan gave “sufficient attention to [the claimant’s] subjective complaints …before determining that they were not supported by objective evidence.”  Op. at 16.
  2. Principal “did not give adequate attention to Miles’s subjective complaints as it failed to assign any weight to subjective complaints, or specific reasons for its reasons to discount them.” Op. at 16.
  3. “Pointing out the evidence is subjective is not, by itself, a proper basis to reject evidence.” Op. at 16.
  4. “Miles’s long history of hard work supports his credibility on [the claimed tinnitus and hearing loss].” Op. at 16.
  5. “As Principal cites no reason to discount the evidence (other than its subjective nature), we conclude that Principal arbitrarily rejected Miles’s subjective evidence of disability.”  Op at 16.
  6. Requiring objective evidence of tinnitus was unreasonable. The record suggest there is no objective test to prove the presence of tinnitus.  Op at 17.

Key Take Away:  Document your assessment and weighing of the subjective evidence.

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Photo of Mike Reilly Mike Reilly

Mike Reilly is a nationally recognized labor, employment and employee benefits attorney, named one of the “Top 100 Most Powerful Employment Attorneys in the Nation” for the past five consecutive years by Human Resource Executive®. He has decades of experience providing strategic employment…

Mike Reilly is a nationally recognized labor, employment and employee benefits attorney, named one of the “Top 100 Most Powerful Employment Attorneys in the Nation” for the past five consecutive years by Human Resource Executive®. He has decades of experience providing strategic employment advice, and has represented clients in more than 75 jury trials, arbitrations, bench trials and claims before the EEOC and Washington State Human Rights Commission.

Small and large employers retain Mike for his strategic advice and decades of experience in employment issues and litigation, business decisions and litigation avoidance. Mike provides advice in claims involving discrimination, retaliation, wrongful discharge, disability accommodation, ERISA and non-ERISA employee benefit claims, and wage/hour claims. He served as lead counsel in an employee raiding/trade secret case as reported in the Wall Street Journal, and defends employers in class action claims.

Mike’s remarks on employment issues have been quoted in NewsweekCorporate Legal TimesSeattle TimesEmployee Relations Law JournalPuget Sound Business JournalCFO.com, and other professional journals and management publications. Chambers USA’s Guide to America’s Leading Lawyers for Businessrates Mike in the top ranking (band one) for his work in labor and employment law, and has described him as “one of Seattle’s top-rate attorneys” who is “truly phenomenal [with] superb legal instincts” and “an amazingly assertive litigator.” His clients include Nordstrom, Seattle Seahawks, Home Depot, KeyBank, Starbucks, Fred Hutchinson Cancer Research Center, Red Robin and Seattle Chamber of Commerce, among others.