Long-term disability lawsuits are filed when individuals are denied benefits they believe they rightly deserve. You might wonder if pursuing legal action is worth the effort. Understanding the potential worth of your lawsuit is critical—it helps you set realistic expectations and plan your future.
These cases often involve complex calculations and legal intricacies. Knowing what factors influence the value of your claim can save you time and stress. Our guide will break down the key elements that determine how much your lawsuit could be worth, giving you a clearer picture to move forward with confidence.
What Types of Damages Can I Possibly Win In Court?
When you’re dealing with a long-term disability lawsuit, it’s essential to understand what types of damages you can win in court. This can make a big difference in how you approach your case and what you can expect. Damages depend on whether state law or federal law under ERISA (Employee Retirement Income Security Act) governs your claim:
- ERISA limits the types of damages you can claim, often sticking to the benefits you’re owed plus interest and legal fees.
- State law may allow for a broader range of claims, including punitive damages and compensation for emotional distress.
How To Tell If Your Claim Is Governed by State or Federal Law
Before diving into the details of your long-term disability lawsuit, it’s crucial to know if state or federal law governs your claim. This can significantly impact the type and amount of damages you can seek. Here’s how you can figure it out.
ERISA
The Employee Retirement Income Security Act (ERISA) is a federal law that governs many long-term disability claims. If your disability coverage is part of an employer-sponsored plan, chances are it falls under ERISA. Understanding if your claim falls under ERISA can help you set realistic expectations for the kinds of compensation you may receive.
State Law
State law governs disability insurance purchased independently or employer-issued claim if you are a government employee (including a school district employee) or if you are covered by a “church plan” (as defined by 29 U.S.C. § 1002(33)(A)). Each state has its own set of rules and protections for disability claims.
Damages for an ERISA LTD Claim
When dealing with an ERISA long-term disability (LTD) claim, understanding the different damages you can recover is essential. Here’s a breakdown of the major categories of damages you could receive.
Past Due Benefits
One of the primary forms of compensation in an LTD claim is past due benefits. If your benefits were wrongfully denied or delayed, you could get the money you should have received during that period.
- Calculation: The past due benefits are calculated based on what your monthly disability check should have been from when your disability began to the present.
- Retroactive Payment: The insurer must make a retroactive payment for all the months you’ve missed, effectively catching you up on what you’re owed.
Imagine missing months of paychecks and suddenly getting them all at once. That’s what past due benefits aim to achieve for you!
Prejudgment Interest
Prejudgment interest is another crucial component. It ensures you’re compensated for the time value of money you’ve been without because of the delayed payment of your benefits.
- Purpose: This interest compensates for the lost time value of the money you should have received when initially due.
- Rate: The rate of prejudgment interest can vary, often calculated based on state law or a predetermined rate set by the court.
Think of it as the interest you earn on savings in a bank. It’s compensation for not having your money when you needed it.
Attorney’s Fees and Costs
Legal battles are expensive, and fortunately, ERISA allows for the recovery of attorney’s fees and costs.
- Eligibility: If you win your case, the court may order the insurer to pay for your attorney’s fees. This makes pursuing your claim financially feasible.
- Additional Costs: You can also recover other costs like court fees, expert witness fees, and documentation expenses.
However, ERISA stops plaintiffs from getting any other damages, like punitive or compensatory damages (such as for pain and suffering). If your LTDI plan falls under ERISA, you can’t claim these types of damages.
Damages for a State Law (Non-ERISA) LTD Claim
When you’re dealing with a long-term disability lawsuit under state law (non-ERISA), the damages you can seek can be broader and more varied. Understanding these damages can help you estimate the worth of your claim.
Compensatory Damages
Compensatory damages are meant to make you whole again by covering the financial losses and emotional distress caused by the denial of your LTD benefits. They can be tougher to quantify but are crucial for your overall compensation. Compensatory damages include:
- Pain and Suffering: Chronic pain or emotional distress caused by your disability can qualify for compensation.
- Emotional Distress: You can also claim the stress and emotional toll of fighting for your benefits under compensatory damages.
Punitive Damages
Punitive damages are significantly less common but can be significant in amount. These damages aren’t about compensating you. Instead, they punish the insurer for their inappropriate behavior. Statute § 768.72 governs punitive damages in Florida.
In order to be awarded punitive damages in Florida, a plaintiff must show that the defendant was personally guilty of intentional misconduct or gross negligence. Florida Statute §768.73 limits punitive damages a plaintiff may receive in LTD cases to the greater of $500,000 or three times the compensatory damages.
Consult with a Long-Term Disability Attorney
Choosing the right attorney can make a big difference in long-term disability cases. A specialized attorney can help you navigate complex laws and maximize your claim. They know the ins and outs of federal and state laws. They’ve also dealt with many major insurance companies and know how to counteract claim denials.
Nick Ortiz, the founder of the Ortiz Law Firm, has been helping clients get the disability benefits they deserve since 2005. If you’re facing a long-term disability denial, he can help you understand whether your claim is governed by ERISA or state law and its potential value. Contact us online or call (888) 321-8131 for help.