Hineman
Hineman v. Long Term Disability Plan of ETrade Group, Inc.
Opinion
Lead Opinion
MEMORANDUM **
Former E*Trade employee Richard Hineman contends that AIG did not properly calculate his long-term disability (“LTD”) benefits. The district court upheld AIG’s benefits determination, finding that Hineman’s date of disability was December 11, 2001, and that his “basic monthly earnings” as of that date were $3,750 (i.e., $45,000 on an annualized basis). We have jurisdiction over this ERISA-governed appeal under 28 U.S.C. § 1291 , and we reverse and remand.
We do not defer to AIG’s interpretation of the plan because it was not given discretion to construe the plan’s terms. Kearney v. Standard Ins. Co., 175 F.3d 1084, 1088 (9th Cir.1999) (en banc). We review de novo the district court’s construction of plan language, in so doing resolving ambiguities in favor of the insured. Babikian v. Paul Revere Life Ins. Co., 63 F.3d 837, 840 (9th Cir.1995). We review the district court’s findings of fact for clear error. Saltarelli v. Bob Baker Group Med. Trust, 35 F.3d 382 , 384-85 (9th Cir.1994).
E*Trade hired Hineman as a Lead Software Engineer making $90,000 a year; he was an exempt, salaried employee. In December 1999, Hineman left work on a medical leave of absence because…