Stahle Construction Inc. appealed a judgment ordering it to pay damages to Roberto Soave for improperly terminating his long-term disability benefits.
The trial judge found Soave was still employed and entitled to benefits.
On appeal, Stahle challenged the trial judge's refusal to admit an insurance policy, the weight given to an insurer's denial letter, and the interpretation of the Mercon Booklet regarding benefit eligibility.
The Court of Appeal upheld the trial judge's decisions on evidence admission and weight but found palpable and overriding errors in the interpretation of the Mercon Booklet's eligibility requirements for long-term disability benefits.
The court clarified that eligibility depended on disability at the time work ceased or becoming totally disabled during a leave if required by law, not merely continuation of coverage.
The appeal was allowed in part, and the matter remitted to the Superior Court for reconsideration of Soave's eligibility based on the correct interpretation.
