Blankenship

FACTS & PROCEDURAL HISTORY

The facts are not in dispute. Vorris Blankenship, an attor- ney employed by KPMG LLP (“KPMG”), developed cancer. He suffered severe complications as a result of his medical treatment. Blankenship’s treating physician informed him that, although he could undergo surgery to attempt to improve his situation, it was not advisable because the surgery could cause further complications and exacerbate his condition.

Liberty Life, administrator and fiduciary of the KPMG Employee Long-Term Disability Plan (“Disability Plan”), of which Blankenship was a member, initially determined in June 1998 that Blankenship qualified for long-term disability benefits under the Disability Plan. However, on April 20, 2000, Liberty Life sent Blankenship a letter informing him that his benefits would be terminated because it had deter- mined that there were alternative treatments that could improve his condition. Blankenship appealed the decision to 5882 BLANKENSHIP v. LIBERTY LIFE ASSURANCE Liberty Life. Five months later, in September 2000, Liberty Life rejected Blankenship’s appeal, reaffirming its prior deci- sion to terminate benefits, and adding additional reasons…

Opinion by Judge PAEZ; Concurrence by Judge NOONAN.

Liberty Life Assurance Company of Boston (“Liberty Life”) appeals the district court’s award of disability benefits to Vorris Blankenship, following a court trial on his claims under the Employment Retirement Income Security Act (“ERISA”) § 502(a)(1)(B) and § 502(a)(3). 29 U.S.C. § 1132 (a). Liberty Life does not challenge the district court’s ruling that Blankenship was entitled to long-term disability benefits. Instead, Liberty Life argues that the disability benefits owed Blankenship should have been reduced by the amount of retirement benefits transferred to his Individual Retirement Account (“IRA”) upon his retirement. Liberty Life also challenges the use of a 10.01-percent interest rate to calculate prejudgment interest. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

FACTS & PROCEDURAL HISTORY

The facts are not in dispute. Vorris Blankenship, an attorney employed by KPMG LLP (“KPMG”), developed cancer. He suffered severe complications as a result of his medical treatment. Blankenship’s treating physician informed him that, although he could undergo surgery to attempt to improve his situation, it was not…

concurring:

By the principles of law distinguishing trusteeship and agency, Vanguard was an agent, not a trustee. The restrictions on Vanguard’s power of investment imposed by the Internal Revenue Code 26 U.S.C. § 408 (a), however, infringe on Blankenship’s control as does the provision in the same statute that the balance of his account be nonforfeitable. If Vanguard were his agent, Blankenship would be free to invest the account as he chose, and he could not confer upon it a nonforfeitable status. Because of these peculiarities of the position of Vanguard — peculiarities owed to the Internal Revenue Code — Vanguard does not completely meet the criteria of agency, and, therefore, Blankenship prevails in this case.