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Ninth Circuit Finds Fiduciary Breached Duty By Not Informing Beneficiary of Arbitration Rights
KPMG
May 10, 2001
Chappel v. Laboratory Corporation of America, 232 F. 3d 719 (November 14, 2000). Excerpt: The Ninth Circuit Court of Appeals has held that an ERISA fiduciary breached his duty by not notifying a health plan beneficiary of the plan's arbitration procedure for denied claims in writing when the claim was denied. The court made this finding even though the plan's summary plan description contained the arbitration procedure.
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