McClelland v. Life Ins. Co. of North America, No. 10-3353 (8th Cir. 2012)
Annotate this CaseLINA appealed the district court's ruling that LINA abused its discretion in denying death benefits to Dawn McClelland based upon her husband's life insurance policy. LINA also appealed the district court's award of attorney's fees. The court found that LINA committed an abuse of discretion in denying benefits because its interpretation was contrary to the language of the plan that it would cover "loss of life" based upon an "accident" and because substantial evidence did not support its decision. The court also found that the total fee awarded should be $85,000 and remanded to the district court to enter an award in that amount. The prejudgment interest award was affirmed.
Court Description: Civil case - Insurance. Decedent's fatal motorcycle accident was an accident for the purposes of policy coverage, and the insurer committed an abuse of discretion in denying benefits because its interpretation of the plan was contrary to the language of the plan which provided that it would cover "loss of life" based upon an accident and because substantial evidence does not support its decision; number of hours plaintiff's counsel expended on the case was clearly excessive, especially considering the policy limits, and the district court's award of attorneys' fees is reduced with directions to enter an award in the amount of $85,000. Judge Gruender, concurring. [ May 22, 2012
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