The defendant insurer brought a motion for summary judgment to dismiss the plaintiff's action.
The plaintiff, a former government employee, had received an overpayment of long-term disability benefits totaling $114,644.76 after she took medical retirement and began receiving pension benefits without the insurer's knowledge.
When the insurer discovered the overpayment, it reduced her ongoing disability benefits by 50 percent to recover the debt.
The plaintiff sued for breach of fiduciary duty, breach of good faith, and punitive damages.
The court granted summary judgment, finding no fiduciary duty existed, the unintentional overpayment was not a breach of good faith, and the insurer was entitled to the self-help remedy of set-off under the policy.
The action was dismissed.