5th Circuit Remands COBRA Suit To Determine If Penalty Is Available Under ERISA

Mealey's (September 10, 2018, 11:56 AM EDT) -- NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Sept. 6 reversed and remanded a district court’s sua sponte dismissal of a plaintiff’s claim for reimbursement of medical expenses under the Consolidated Omnibus Budget Recovery Act (COBRA) after determining that the district court abused its discretion in ruling that the plaintiff was legally barred from obtaining a penalty award under the Employee Retirement Income Security Act for the employer’s failure to provide the required notice of coverage termination under COBRA (David L. Hager v. DBG Partners Inc., No. 17-11147, 5th Cir., 2018 U.S. App. LEXIS 25358). ...

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