George Nikaido v. The Centennial Life Insurance Company, Hughes Aircraft Company Income Insurance Plan, and Hughes Aircraft Company

George Nikaido brought this action against The Centennial Life Insurance Company (“Centennial”), Hughes Aircraft Company Income Insurance Plan (“Plan”), and Hughes Aircraft Company (“Hughes”) to recover disability benefits allegedly due under the Plan. The district court granted Centennial’s motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), holding that the action is barred by the statute of hmitations. We reverse.

I.

Nikaido became disabled in January 1980 while employed by Hughes and submitted a claim for disability benefits under the Plan. Centennial, the underwriter for the Plan’s long term disability provisions, paid Nikaido monthly benefits for several years.

On November 13, 1987, Centennial mailed a letter to Nikaido notifying him that it was discontinuing his benefits because the medical evidence indicated that he was no longer totally disabled. Nikaido received that letter on November 14, 1987. The Plan provides that the beneficiary has sixty days from the date of denial to submit a request for review of a claim. Nikaido submitted nothing to the Plan by the January 14, 1988 deadline.

Between January and August 1988, Nikai-do and Centennial exchanged correspondence…