Sedgwick Disability Denial of AT&T Employee Reversed Once Again

What will it take for Sedgwick to stop wrongfully denying disability benefits to AT&T employees? AT&T appears to want to bury their head in the sand and act like they don’t know what Sedgwick is doing. We personally think AT&T is happy with the conduct of Sedgwick as the more denials; the more AT&T can keep its money.

The disability denial lawsuit discussed below is an example of the lengths Sedgwick Claims Management will go to in order to deny a claimants benefits. A claimant may have an extraordinary amount of objective medical support including opinions from qualified physicians stating that he or she is disabled and unable to work as well as positive MRI’s and CT scans, yet the plan administrator (Sedgwick) can completely ignore such evidence and fabricate their own opinions that are completely contrary to the information stated in the records. Since this occurs often, it is extremely important to ensure that you retain an attorney with the experience to ensure that the administrative record is complete before the case ends up in a court of law. Once the final appeal is filed and the administrative records is closed, no additional information may be added or presented to the court. Had the Plaintiff in the case described below failed to retain an attorney to ensure that all of his medical records and doctors opinions were submitted during the appeals process as well as ensured that he underwent additional objective medical testing, the Court may not have ruled in his favor.

In this instance, AT&T and Sedgwick failed to get away with their abusive treatment of the claimant. Often times, companies get away with this behavior as many claimants feel they are powerless over these large companies and do not believe they can win. They give up, return to work in a disabled condition, or attempt to file an appeal on their own, which is exactly the outcome the insurance companies are hoping for. However, this abusive behavior can be curtailed with the help of a disability insurance lawyer whose role is to help ensure that the insurance company does not abuse its discretion and the claimant receives the disability benefits they are rightfully owed.

Northern District of California Court Orders AT&T to pay STD benefits to Claimant

In June of 2012, the Northern District of California granted Plaintiff’s motion for summary judgment. Plaintiff was a Retail Sales Consultant for AT&T who received STD benefits as a result of severe knee pain¬†due to arthritis. His employer required him to be on his feet 8 hours a day and would not allow him to sit during that 8-hour shift. He was initially approved for STD benefits, but his benefits were later terminated when Sedgwick, the Claim Administrator, determined that he was no longer disabled.

Three Reasons The Sedgwick Disability Denial Was Abusive And Unreasonable

The Court ruled that AT&T abused its discretion in terminating Plaintiff’s benefits based on the following reasons:

  1. It Was Illogical To Deny Continued STD Benefits Where the Medical Evidence Showed No Change in Plaintiff’s Condition
    AT&T initially found Plaintiff to be disabled based on his physicians medical records and opinions that he could not work due to severe knee pain. According to the Court, the updated medical records did not reflect any significant change in Plaintiff’s symptoms. To the contrary, the Plaintiff’s physicians reported continued knee pain stating the Plaintiff could only work 4 hour shifts and might need a chair- an accommodation that was not available. In addition an MRI supported the diagnosis of arthritis as well as degeneration. The Court held that none of the updated medical records offered any reasonable basis for concluding that Plaintiff’s condition had improved compared to the initial periods of STD benefits. AT&T tried to justify cutting off the Plaintiff’s benefits by claiming he was no longer disabled. After reviewing all of the medical records, the court determined that the Plaintiff’s knee had not gotten better it in fact had gotten worse.
  2. The Denial was Arbitrary Because Peer Review Physician (AT&T’s hired doctor) did not Explain Why he Rejected the Findings of the Treating Physician Who Examined the Plaintiff
    The plan administrator based its denial of Plaintiff’s appeal on a paper review of the record by the peer review physician. The peer review physician failed to explain why he disagreed with the conclusions of all the physicians and care providers who examined the Plaintiff. The peer review physician also failed to speak with any of Plaintiffs treating doctors and left messages stating that if they did not return his call within 24 hours their opinions would be disregarded. The Court ruled that the plan administrator may not arbitrarily refuse to credit a claimant’s reliable evidence, including the opinions of a treating physician.
  3. The Denial was Arbitrary Because the Plan Administrator Failed to Conduct an Independent Medical Examination and Ignored Plaintiffs Subjective Complaints of Pain
    According to the Court, a plan administrator cannot get away with ignoring and/or rejecting a claimants subjective complaints of pain without a principal reason, especially when there is objective proof of a disease that could cause such pain. In this case, the Plaintiff complained of severe knee pain which was universally documented in his physicians’ records and underwent an MRI that revealed degenerative changes as well as arthritis. AT&T completely disregarded the Plaintiff’s complaints of pain and MRI results stating that he was perfectly capable of returning to his regular occupation. Furthermore, the Court stated that the plan had the right to arrange for an independent medical evaluation, but chose not to do so, relying on its hired physician’s paper review of the claimant to make the determination that he was no longer entitled to benefits.

Based on all of the¬†considerations above, The Court concluded that the Plan abused its discretion when it terminated Plaintiffs STD benefits. The Court remanded for an award of benefits retroactive to the effective date of denial for the full 22 week period for which benefits would have been available as well as attorney’s fees and costs.

This case was not handled by Attorneys Dell & Schaefer. However, this is an example of how important it can be to retain an experienced disability attorney to ensure that your administrative record is complete. Without effective counsel, the above decision could have been very different. Contact our firm for a free consultation to discuss your disability insurance claim.

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There are 3 comments

  • I had shoulder surgery. (Rotator cuff, bone spurs & torn bicep) doctors report: improvement in mobility & strength. No swelling. Patient in theropy 3 days a week. Follow up visit scheduled in 1 month. Not ready to return to work. Sedgewick: denied Claim. Since “improving”, he must be ready to return to work! I can’t reach the top of my head!…let alone do physical cable repair work. Me nor my doctor can get my case worker to return phone calls. (For 2 weeks!!) Case worker’s mgr is also no help. Referred to CWA for help!

    MarkJun 2, 2015  #3

  • I have had nothing but a mess out of accommodation, first time I did one and I was fired. I had kidney stones disability approved, did accommodation for just 3 days; after I came back I didn’t pass them all; gave doctors the paper, faxed it over and over, oh we didn’t get it. I met with FMLA worker at the job, she did an extension and we faxed the papers to health once again on 10/28/14; I was told I had 12 days… My doctor approved them, signed and faxed them on 10/30/14; I got my copy too. I was fired 2 weeks ago, for points and there those 3 days are. I was pointed and fired for the days she approved clearly!

    AmberJan 29, 2015  #2

  • I am an AT&T employee who is currently going through the same situation. I am in the appeals process and getting the run around as well. It is causing me financial hardship to the point I am maxing out credit cards, and taking money out of my 401k to make ends meet. Another division of Sedgwick is handling my worker’s comp case and have been very helpful. They are recieving all of my multiple doctors info and are very interested in getting me well and back to work. Yet the disability say they haven’t been getting the info. They say that the two divisions are seperate and don’t share info. They did the first 2 months. What happened to that?

    Unhappy AT&T Employee & Sedgwick VictimFeb 26, 2014  #1

FAQ

Do you help Sedgwick claimants nationwide?

We represent Sedgwick clients nationwide and we encourage you to contact us for a FREE immediate phone consultation with one of our experienced disability insurance attorneys.

Can you help with a Sedgwick disability insurance policy?

Our disability insurance lawyers help policy holders seeking short or long term disability insurance benefits from Sedgwick. We have helped thousands of disability insurance claimants nationwide with monthly disability benefits. With more than 40 years of disability insurance experience we have helped individuals in almost every occupation and we are familiar with the disability income policies offered by Sedgwick.

How do you help Sedgwick claimants?

Our lawyers help individuals that have either purchased a Sedgwick long term disability insurance policy from an insurance company or obtained short or long term disability insurance coverage as a benefit from their employer.

Our experienced lawyers can assist with Sedgwick:

  • ERISA and Non-ERISA Appeals of Disability Benefit Denials
  • ERISA and Non-ERISA Disability Benefit Lawsuits
  • Applying For Short or Long Term Disability Benefits
  • Daily Handling & Management of Your Disability Claim
  • Disability Insurance Lump-Sum Buyout or Settlement Negotiations

Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

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No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

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When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

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Lisa S.

I came to Dell & Schaefer after an attorney firm in Maryland decided in August they could not win my case and decided to drop me with my Appeal for LTD with Aetna due in October. I contacted Dell & Schaefer and sent the firm my information. They assigned me to Rachel Alters who is the best. She explained to me it normally takes 4-6 months to do an appeal, but Rachel assured me she would do her very best to win my Appeal in the limited time we had remaining to submit an Appeal.

Rachel worked very hard and we had some long phone calls, even though I have never met Rachel face to face I feel she is part of the family. I got a call from Rachel the beginning of December letting me know we won the case and that Aetna would be reinstating my benefits. There is nothing more I could ask for. Winning an appeal for LTD would not have been possible with out the law firm of Dell & Schaefer.

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