Branch v. G. Bernd Company
(United States District Court for the Middle District of Georgia,
Macon Division, LEXIS 7591)
Dwayne Bell worked for G. Bernd Company and terminated his employment
on less than friendly terms. Ms. Pratt of G. Bernd Company attempted unsuccessfully
to advise Mr. Bell of his COBRA rights over the telephone. Mr. Bell was scheduled to
come into the G. Bernd Company office to complete paperwork on COBRA. When Bell came
in, Pratt was unavailable, and someone else handled the paperwork. Bell signed a waiver
of COBRA coverage for dependents, when no dependents were covered under the plan.
Ten days later, Bell was shot several times and admitted to the Medical
Center of Central Georgia. He incurred approximately $98,000 in claims and then died
as a result of his injuries. When no family could be located, the hospital administrator,
Lynn Branch, was appointed as administrator of Bell’s estate. Branch attempted
to elect COBRA coverage on behalf of Bell’s estate. The G. Bernd Company denied
the request because it was made outside the 60-day election period. Branch filed suit
to recover the $98,000 in claims.
The court found in favor of Branch, stating Mr. Bell was never properly
notified of his 60-day election period. The court found no reference to the 60-day election
period in either the COBRA notice or the company’s Summary Plan Description. Since
the election period was never listed, the court ruled that a COBRA election would be
valid if made before the end of the 18 month continuation period.
The court went on to note, even if a 60-day election had
been specified in the notice, the “election period would have been suspended
from the time Mr. Bell became incapacitated until Branch was appointed administrator
of the estate.” Due to a provision in the G. Bernd Company insurance
contract, the carrier was ordered to pay the $98,000.