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Supreme Court Decision Governs Michigan Benefits Suit
U.S. District Judge Nancy G. Edmunds of the U.S. District Court for the District of Michigan ruled that MetLife was required to pay to Yvette Jones, ex-wife to participant Manuel McCalip, Jr., $154,000 in benefits due under the policy for McCalip’s former employer, Johnson Controls.
Edmunds asserted in her ruling that she was following the dictates of a recent Supreme Court case, Kennedy v. Plan Administrator for DuPont Savings & Investment Plan in which the court held that in circumstances like those in the McCalip lawsuit, a benefits administrator acting under the Employee Retirement Income Security Act (ERISA) must make such a payout to the last properly named employee beneficiary as reflected in plan documents (see High Court Affirms DuPont’s Payment to Ex-Wife ).
According to the ruling, Manuel McCalip Jr. died and about a month later, MetLife received documents appointing Belinda McCalip as representative of his estate and stating a claim for the insurance benefits.
The estate filed suit in July 2008 to which MetLife insisted his ex-wife, instead, was the proper beneficiary.
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