United States District Court, D. Massachusetts
ORDER ON PLAINTIFF'S MOTION TO DISMISS
COUNTERCLAIM [DOCKET NO. 9]
JENNIFER C. BOAL UNITED STATES MAGISTRATE JUDGE
ERISA action, plaintiff Karen Jette seeks to recover
long-term disability benefits from defendant United of Omaha
Life Insurance Company (“United”). United has
filed counterclaims against Jette, seeking to recover $15,
745.99 it allegedly overpaid to Jette due to her receipt of
disability benefits under the Social Security Act. Jette has
moved to dismiss United's counterclaims. Docket No.
This Court heard oral argument on July 10, 2019. For the
following reasons, this Court grants the motion without
prejudice to United seeking leave to amend the answer to add
counterclaims after limited discovery.
seeks long-term disability (“LTD”) benefits under
an employee welfare benefit plan sponsored and maintained by
her former employer (the “Plan”). Counterclaim at
¶ 6. LTD benefits under the Plan were at all relevant
times funded by a group disability insurance policy issued by
United to Jette's former employer. Id. at ¶
7. United served as the Claim Administrator of the Plan.
Id. at ¶ 8.
applied for and received LTD benefits under the Plan.
Id. at ¶ 9. The Plan defines the monthly LTD
benefit, in part, as follows:
If you are Disabled and earning less than 20% of Your Basic
Monthly Earnings, the Monthly Benefit while Disabled is the
a) 60% of Your Basic Monthly Earnings, less Other Income
b) the Maximum Monthly Benefit, less any Other Income Sources
. . .
Id. at ¶ 10. The Plan defines “Other
Income Sources, ” in part, as follows:
We take into account the total of all Your income from other
sources of income in determining the amount of Your Monthly
Benefit. Your Other Income Sources are any of the following
amounts that You receive or are eligible to receive as a
result of Your Disability or the Sickness and/or Injury that
caused, in whole or in part, Your Disability: . . .
(e) Any benefits for You or Your Spouse and Dependent Child
under: 1. the U.S. Social Security Act; . . .
Id. at ¶ 11. The Plan provides United the right
to seek a refund from a Plan participant in the event of an
Refund to Us
If it is found that We paid more benefits than We should have
paid under the Policy, We have the right to a refund from You