Sherry DeLisle v. Sun Life Assurance Co. of Canada

What Happened:
Sherry DeLisle worked for Sun Life Assurance and applied for long-term disability benefits when she became unable to work due to a medical condition. Sun Life denied her claim, refusing to provide the disability benefits she believed she was entitled to under her employee benefit plan.

What the Court Decided:
The Sixth Circuit Court of Appeals ruled in favor of DeLisle. The court found that Sun Life's decision to deny her disability benefits was "arbitrary and capricious," meaning the company made an unreasonable decision without proper justification. The court ordered Sun Life to reconsider DeLisle's disability claim and properly determine how much she should receive in benefits. Additionally, Sun Life was required to pay DeLisle's attorney fees.

Why This Matters for Workers:
This ruling reinforces that employers and insurance companies cannot arbitrarily deny legitimate disability benefit claims. When workers become disabled and cannot work, they have the right to fair consideration of their benefit claims under employee benefit plans. If a company unreasonably denies these benefits, courts can step in to protect workers' rights and ensure proper review of their claims.