Dalton v. CHS/Community Health Systems et al

Filing 76

MEMORANDUM DECISION AND ORDERdenying 53 Defendants' Motion for Summary Judgment and granting 54 Plaintiff's Motion for Partial Summary Judgment. Plaintiff is to submit an appropriate form of Judgment within 10 days. Signed by Judge Bruce S. Jenkins on 8/14/14. (ss)

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF UTAH, CENTRAL DIVISION

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MARLEE DALTON,
Plaintiff,
vs.
CHS/COMMUNITY HEALTH
SYSTEMS, INC., TOOELE CLINIC
CORP" and CHS/COMMUNITY
HEALTH SYSTEMS, INC. 04
LIGEIADPLIDEPENDENT LIFE PLAN,

Defendants.

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FILED
CLERK, U.S. DISTRICT COURT
August 14, 2014 (3:55pm)
DISTRICT OF UTAH
'Civil No. 2:12-CV-0412-BSJ
MEMORANDUM DECISION &
ORDER

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This matter came on for rehearing on the 31 st day of July, 2014, on Plaintiffs Motion for
Partial Summary Judgment Against Defendant CHS/Community Health Systems, Inc. (CM/ECF
No, 54) and Defendants CHS/Community Health Systems, Inc., Tooele Clinic Corp., and
CHS/Community Health Systems, Inc. Welfare Benefit Plan's Motion for Summary Judgment
(CM/ECF No. 53).

Appearances were as follows: Brian S. King appeared on behalf of Plaintiff and Curtis J.
Drake appeared on behalf of Defendants.
The question before the court is the failure of the Plan Administrator to supply complete
information to Plaintiff and her counsel concerning ERISA plan coverage,
The facts are essentially uncontested and appear in the record.

Plaintiff seeks an imposition of penalty pursuant to the applicable statutes and related
regulations. See 29 U.S.C. § 1024(b)(4); 29 U.S.C. § 1132(c)(1).
The court, pursuant to statute may impose a penalty up to $110 per day.
Plaintiff asks for $47,520, computed as follows:
Marlee is entitled to an award of statutory penalties of S100 per day from January
2,2012, thirty days after her December 2,2011 request, to September 8,2012, a period of
251 days. In addition, she is entitled to an award of statutory penalties of $11 0 per day
from March 11,2012 through September 8, 2012, a period of 181 days. The total award
of penalties at $110 per day is $47,520.00
The statute is punitive and is designed to get the attention of a non-responding plan
administrator and thus, among other things, provide incentive for future compliant conduct when
requests are made.
Plan Administrator, Defendant and its associated Defendants comprise a very large
national company. The appropriate entity needs to put into place a method for reasonably prompt
response to requests for infonnation required by statute.
Thus, in the courts considered opinion, a penalty of$85.00 per day for each request is
appropriate and reasonable for a total of $36,720 by way of penalty and computed as follows:
$85 per day for a period of251 days:
$85 per day for a period of 181 days:
TOTAL

$21,335
$15,385
$36,720

While the requested penalty was reasonable, it was reduced by the court because of the
partial response to Plaintiff's requests when she was unrepresented.

Plaintiffs Motion for Partial Summary Judgment is GRANTED and Defendants' Motion
for Summary Judgment is DENIED. Plaintiff is to submit an appropriate form of Judgment
within 10 days.
SO ORDERED.
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DATED this ...i~ day of August, 2014.

BY THE COURT: