Joseph Weinberger v. RELIANCE STANDARD LIFE INSURANCE COMPANY On Appeal from the United States District…

NOT PRECEDENTIAL
UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT
No. 01-3627
JOSEPH WEINBERGER,
Appellant
v.
RELIANCE STANDARD LIFE INSURANCE COMPANY
On Appeal from the United States District Court
for the District of New Jersey
(D.C. No. 00-CV-04305)
District Judge: Hon. William G. Bassler
Argued November 1, 2002
Before: SLOVITER, FUENTES, Circuit Judges
and FULLAM,* District Judge
(Filed: December 6, 2002)
Steven P. Marshall, Esq. (ARGUED)
Wilentz, Goldman & Spitzer
90 Woodbridge Center Drive
Suite 900
Woodbridge, NJ 07095
Counsel for Appellant
* Hon. John P. Fullam, Senior Judge of the United States District Court for the
Eastern District of Pennsylvania, sitting by designation.

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1 Weinberger’s Complaint also alleges causes of action for breach of contract, bad faith,
denial of benefits, and breach of the duty of good faith and fair dealing. He has not pressed
those claims on appeal and therefore is deemed to have waived them.
2
Joshua Bachrach, Esq. (ARGUED)
Rawle & Henderson
One South Penn Square
The Widener Building
Philadelphia, PA 19107
Counsel for Appellee
OPINION OF THE COURT
SLOVITER, Circuit Judge.
Appellant Joseph Weinberger appeals from the grant of summary judgment in favor
of Defendant Reliance Standard Life Insurance Company in Weinberger’s action alleging
that Reliance wrongfully denied him long-term disability benefits in violation of the
Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001, et seq. (hereafter
“ERISA”).1 This appeal timely followed.
Weinberger asserts that the District Court misapplied the standard of review
applicable to decisions by fiduciaries who have a conflict of interest acting with grants of
discretion under ERISA plans, as set forth in our holding in Pinto v. Reliance Standard Life
Ins. Co., 214 F.3d 377 (3d Cir. 2000). We agree. Therefore, we believe that the District
Court should decide in the first instance, using the appropriate standard, whether
Weinberger, who has Parkinson’s Disease, has established an issue of material fact as to his

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2 Pursuant to the terms of his employment agreement, Weinberger could be terminated
for any reason.
3 The medical records submitted in connection with Weinberger’s disability claim
included:
3
entitlement to long term disability benefits.
I.
In 1997, Weinberger sold his printing business to Xyan, Inc. and became the
Director of Business Development at Xyan. His job responsibilities primarily required
him to travel by car and to maintain good relations with Xyan’s printing customers. As a
Xyan employee, Weinberger participated in the group long-term disability plan and policy
underwritten by Reliance. That policy grants Reliance, as Xyan’s ERISA plan fiduciary and
insurer, discretionary authority to determine eligibility for benefits. The policy provides
long-term disability benefits to full-time employees who are totally disabled, following a
90-day elimination period. Reliance concedes that it was not only the plan administrator
but also its funder.
Weinberger, who was first diagnosed with Parkinson’s Disease in early 1990, filed a
claim for disability benefits with Reliance on June 21, 1999, shortly following Xyan’s
termination of Weinberger’s employment on April 29, 1999.2 Reliance denied
Weinberger’s claim, stating that the medical evidence submitted was insufficient to
establish that Weinberger was “totally disabled” at or before the time of his termination
from employment and for ninety days thereafter. On February 18, 2000, in response to
Weinberger’s appeal from the denial of benefits, Reliance reaffirmed its decision.3

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(1) Records of Weinberger’s treating physician, Dr. Mark, covering four office
visits from June 9, 1998 through November 2, 1999. These records indicate that
Weinberger suffered from Stage II Parkinson’s disease, but do not include specific ways in
which his ability to perform his job was impaired. To the contrary, the only mentions of
any specific disability are (1) an October 5, 1999 report to Reliance stating that
Weinberger’s symptoms then included, among other things, gait and posture disturbances,
general physical and mental slowing, some motor disturbance, and tremor; and (2) a
notation of Weinberger’s November 2, 1999 office visit regarding his complaints of
difficulty standing for a while and some memory impairment. In addition, Dr. Mark’s June
22, 1999 Physician’s Statement describes Weinberger’s continued physical mobility and
states that he could drive at that time. Finally, Dr. Mark’s October 5, 1999 Physician’s
Report states that despite his neurological impairment, Weinberger was able to carry out
most activities of daily living as well as before the onset of his disease.
(2) Dr. Mark’s response to Weinberger’s July 21, 1999 written request for
additional information, in which she states, in reply to the question “[W]hat happen[ed] on
or about 5/2/99 to render [Weinberger] totally disabled from doing his occupation?” that
his Parkinson’s disease had “progressed to the point of disability.”
(3) Records of Dr. Friedman, who performed a neurological evaluation on October
20, 1999, and discusses Weinberger’s decreased strength, increased fatigue, and tremors at
that time.
4
II.
We exercise jurisdiction under 28 U.S.C. § 1291. Our review of the District Court's
grant of summary judgment is plenary and we must affirm summary judgment if there is no
genuine issue of material fact and the moving party is entitled to judgment as a matter of
law. See Celotex Corp. v. Catrett, 477 U.S. 317, 322-23 (1986). Where a factfinder could
conclude that the defendant’s decision to deny benefits “was the result of self-dealing
instead of the result of a trustee carefully exercising its fiduciary duties to grant” benefits
due under the insurance plan, summary judgment is “inappropriate, for there is a genuine

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5
issue of material fact as to whether [the defendant] acted arbitrarily and capriciously.”
Pinto, 214 F.3d at 394.
III.
When an ERISA plan grants discretionary authority to a fiduciary or administrator to
construe the terms of the plan, the District Court’s grant of summary judgment is made
under an arbitrary and capricious standard. See Nazay v. Miller, 949 F.2d 1323, 1334 (3d
Cir. 1991); Stoetzner v. U.S. Steel Corp., 897 F.2d 115, 119 (3d Cir. 1990). Under this
standard of review, the fiduciary’s decision must generally be affirmed unless it was
“without reason, unsupported by substantial evidence or erroneous as a matter of law.”
Abnathya v. Hoffmann-La Roche, Inc., 2 F.3d 40, 45 (3d Cir. 1993) (quotation omitted).
Where, however, the plan fiduciary making decisions on eligibility for benefits acts
under a conflict of interest, that fiduciary’s decisions are subjected to a heightened
arbitrary and capricious standard of review. See Pinto, 214 F.3d at 387-89. Under this
standard, the degree of deference normally given is lessened, along a “sliding scale”, to the
degree determined by the District Court to be appropriate to offset any adverse effect of
the conflict of interest. Id. at 393. Although the fact that the decision-maker was also the
insurer of the plan may not in itself warrant application of the least deferential standard of
review, see, e.g., Cozzie v. Metropolitan Life Ins. Co., 140 F.3d 1104, 1108 (7th Cir.
1998), a “high degree of skepticism” is necessitated in the presence of other extrinsic
evidence of bias, such as procedural irregularities or inconsistent treatment of factual
information. See Pinto, 214 F.3d at 393-94.

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4 See Pinto, 214 F.3d at 378 (noting that “when an insurance company both funds and
administers benefits, it is generally acting under a conflict that warrants a heightened form
of the arbitrary and capricious standard of review”); see also Brown v. Blue Cross & Blue
Shield of Ala., 898 F.2d 1556, 1561-62 (11th Cir. 1990) (concluding that an insurance
company acts under a “strong conflict of interest” when both administering and paying out
benefits under an ERISA plan).
5 See Pinto, 214 F.3d at 393 (holding that in applying a heightened arbitrary and
capricious review, “we look not only at the result . . . but at the process by which the result
was achieved”).
6
IV.
Here, as in Pinto, Reliance is acting as both the decision-maker regarding an
employee’s eligibility for benefits and the prospective payor of those benefits; that is, it
has a financial self-interest at stake.4 The District Court expressed the view that, standing
alone, the conflict resulting from the fact that the decision-maker would be paying the
benefits warranted review applying a “moderately deferential” standard, and thereupon
applied that standard in this case because there was no “extrinsic evidence” that the decision
to deny benefits was affected by the self-interest of the decision-maker. However, here, as
in Pinto, we find aspects of Reliance’s decision-making procedure troubling.5 We note that
the administrator rejected the only medical evidence by a physician who had examined the
plaintiff, and her consistent opinions that Mr. Weinberger was indeed totally disabled as of
May 1, 1999 were not contradicted by any other professional opinion. The administrator
noted, but treated as essentially irrelevant, the fact that the Social Security Administration
had determined, on the basis of its medical examination in October 1999, that Mr.
Weinberger was totally disabled as of April 29, 1999.

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6 Cf. Lasser v. Reliance Standard Life Ins. Co., 130 F. Supp.2d 616, 624 (D.N.J. 2001)
(finding agency definition of occupation “far too blunt an instrument to be instructive as to
the material duties of” a specific occupation).
7 Weinberger also asserts that Reliance evidenced bias in its decision-making by
crediting only selected portions of the medical evidence, by citing contradictory alternative
reasons for its denial of benefits, and by failing to perform an independent medical
evaluation. See Pinto, 214 F.3d at 393-94 (including, in account of “procedural anomalies”
warranting “a high degree of skepticism”, Reliance’s self-serving selectivity in use of
medical evidence and expert opinions and inconsistent treatment of the same authority).
But see id. at 394 n. 8 (noting that focus on process should not be read to require an
additional duty to gather more information).
7
Moreover, in assessing Weinberger’s inability to perform the material duties of his
occupation, Reliance employed the Department of Labor’s Description of Occupation
Titles, more specifically, its general description of a sales manager’s duties. Reliance’s
utilization of this generic agency description, with its assumption of a sedentary occupation
with minimal physical demands, appears inappropriate, particularly in light of Weinberger’s
provision, along with his disability claim, of a job description setting forth the actual
requirements of his position, including his travel requirements.6 The District Court
concluded that Reliance’s utilization of the agency description was harmless because the
record failed to establish that Weinberger was required to travel frequently or regularly, or
“that any travel by car was anything other than sedentary.” App. at 14 (Weinberger v.
Reliance Standard Life Ins. Co., No. 00-4305 (D.N.J. Aug. 23, 2001)). However, it is fair
to infer that one whose job responsibilities include travel to client sites and to trade shows,
as set forth in the Occupational Analysis provided with Weinberger’s claim, is not expected
to remain seated upon arrival at his destination.7

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8 Xyan’s termination of Weinberger’s employment does not, of course, in itself
evidence his disability. Neither party sought to depose any Xyan employee or officer as to
the reason for its termination of Weinberger. When questioned about this at the oral
argument, Xyan’s counsel referred us to the provision of Weinberger’s contract
specifically providing that Xyan would be free to terminate his employment for any reason.
8
While we are not persuaded that the overall review procedure employed by Reliance
in this case was as egregiously defective as that which it employed in Pinto, we are
nonetheless concerned that a review of the merits of Reliance’s interpretation of
Weinberger’s eligibility suggests that it was not, in some respects, “‘consistent with an
exercise of discretion by a fiduciary acting free of the interests that conflict with those of
the beneficiaries.’” Pinto, 214 F.3d at 391 (quoting with approval Doe v. Group
Hospitalization & Medical Services, 3 F.3d 80, 87 (4th Cir. 1993)). We believe that the
“moderate” scrutiny applied by the District Court was, in these circumstances, unduly
deferential.
V.
To be eligible for long-term disability benefits under the terms of the relevant plan,
Weinberger must have been totally disabled from employment prior to the date of his
termination by Xyan, i.e., prior to April 29, 1999. As we noted above, there is a question
whether the medical evidence submitted by Weinberger sufficiently established that at the
time of his termination he was totally disabled because of his Parkinson’s Disease from
performing his principal job requirements of driving and developing and maintaining
relations, e.g. socializing, with Xyan customers.8 We do not decide that issue because we

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believe that the District Court should, in the first instance, decide the merits of the case
using the correct standard of review.
VI.
For the reasons set forth above, we will vacate the District Court’s order and remand
for further proceedings consistent with this opinion.
_______________________
TO THE CLERK:
Please file the foregoing opinion
/s/ Dolores K. Sloviter
Circuit Judge
Weinberger v. Reliance Standard Life Ins. Co., No. 01-3627
FULLAM, District Judge, concurring.
I join in Judge Sloviter’s opinion in all respects. I write separately only to
emphasize, in view of the dissenting opinion, that the record before the District Court
demonstrated, on its face, not only that the decision to deny disability benefits was made by
persons acting under a conflict of interest, but also that self-interest may well have

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influenced the decision. Plaintiff-appellant, in my view, clearly sustained his burden of
proving that little or no deference was due the insurer’s decision.
Persons familiar with Social Security disability litigation are certainly aware that the
award of disability benefits at the administrative level is not easily won. An impartial
decision-maker in this case could not, in my view, simply dismiss the Social Security award
as irrelevant because not binding upon the insurance company. At the very least, one would
expect a better explanation than that.
I therefore agree that the District Court applied the wrong standard of scrutiny, and
concur in the remand.
Weinberger v. Reliance Standard Life Ins. Co., No. 01-3627
FUENTES, Circuit Judge, dissenting.
Although I concur with the Court’s analysis as set forth in Parts I-III, I disagree with
the conclusions drawn in Parts IV and V. After reviewing the record, I believe the District
Court properly applied our instructions in Pinto v. Reliance Standard Life Ins. Co., 214
F.3d 377 (3d Cir. 2000), when it determined the relevant standard of review. I also believe
the District Court’s decision to grant summary judgment in favor of Reliance was

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appropriate on the record before it. For these reasons, I respectfully dissent.
In Pinto, we recognized that when an insurance company is both administrator and
funder of a benefits plan, heightened scrutiny is required. See id. at 387. As the majority
also noted, the appropriate degree of scrutiny to be applied varies along a sliding scale,
“according different degrees of deference . . . .” Id. at 391. The degree of deference will
depend in any given case on the presence of conflict, bias, or procedural irregularities on
the part of the insurer that would weigh in favor of greater skepticism. The point that bears
repeating here, however, is that Pinto intentionally preserved the status quo with respect to
the burden allocation--that is, plaintiff continues to bear the burden of establishing a
conflict, bias, or procedural irregularity sufficient to trigger more skeptical review. See id.
at 392 (“We think the best way to ‘consider’ these potentially relevant factors (in this case,
the structural conflict of interest) is to use them to heighten our degree of scrutiny, without
actually shifting the burden away from the plaintiff.”) (emphasis added).
As the District Court noted, plaintiff Joseph Weinberger (“Weinberger”) failed to
produce any evidence below that would substantiate a conflict or bias that would trigger a
high degree of skepticism in reviewing the denial of Weinberger’s benefits. Instead, it
appears that Weinberger is attempting to argue on appeal, for the first time, that Reliance’s
review process was infected with procedural irregularities. After reviewing the record,
however, these purported irregularities do not appear altogether irregular. For instance,
Weinberger claims that it is suspicious that Reliance has no mechanism for reviewing its
denial of benefits even though the Social Security Administration (“SSA”) awarded
disability benefits to Weinberger. For this proposition, Weinberger relies on Pinto. I

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believe that Weinberger has misconstrued the factual similarity between his case and Pinto.
In Pinto, we found an irregularity in part because although Reliance had initially based its
denial on SSA’s rejection of the plaintiff’s claim, it later refused to review its denial when
the SSA reversed its own determination. Id. at 393. Here, Weinberger has failed to prove
that SSA’s decision was in any way relevant to Reliance’s. Furthermore, after a thorough
review of the record, I find that none of the documents cited by Weinberger support his
contention that the SSA determination should inform the review of Weinberger’s separate
claim for benefits from Reliance. Rather, the only probative document relating to the SSA
determination is the report of Dr. Mark Friedman discussing an October 20, 1999 medical
examination. App. at 99. Dr. Friedman’s report merely records his observations about
Weinberger’s condition as of that date, without giving any indication that Weinberger’s
“disability” manifested itself before April 29, 1999 – the date of Weinberger’s termination.
Without a showing of the standards applied by SSA, the time frame for its decision, and the
bases for its decision, Weinberger cannot rely on a third party’s determination to inform
Reliance’s.
Second, Weinberger claims that Reliance’s review was irregular because it
selectively relied on portions of the medical record while it ignored the parts that support
his claim for benefits. I fail to see how the record supports such a conclusion. Rather, the
record reflects that Reliance relied primarily on the reports of Dr. Margery Mark,
Weinberger’s treating physician. The relevant aspects of Dr. Mark’s reports
overwhelmingly indicate that Weinberger had the ability to perform most, if not all, of the
functions required in a sedentary occupation and that he was able to continue most

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activities associated with daily living. While there are statements regarding neurological
impairment, this hardly renders Reliance’s review irregular. It appears that Reliance
attempted to make an informed decision based on all of the evidence submitted by
Weinberger.
Third, Weinberger claims that Reliance’s review was tainted by its failure to obtain
an independent medical evaluation. While the failure to obtain an independent medical
evaluation may be relevant to the limited issue of the propriety of the review process, I fail
to see how that omission is at all relevant here, where there was a well-documented medical
record as evidenced by Dr. Mark’s reports. Weinberger has not shown that an independent
medical evaluation would have contributed anything to the review process.
Finally, the majority notes that it was unusual for Reliance to employ the
Department of Labor’s Description of Occupational Titles (“DOT”), as opposed to the job
descriptions submitted by Weinberger which more accurately reflect the requirements of
his position. While I recognize that Reliance’s decision to employ the DOT was curious, I
am not certain that it rises to the level of a procedural irregularity that would warrant
skeptical review. Furthermore, in light of my reading of Pinto, the burden still rested with
Weinberger to show that the use of the DOT tainted the review process in some material
way. As the District Court noted, however, the DOT’s and Weinberger’s descriptions were
not entirely inconsistent and both acknowledged that Weinberger’s position was largely
sedentary. To be sure, Reliance did not perform a flawless review in this case. I do not
believe, however, that the imperfections here resulted in the type of bias or conflict that
Pinto requires for more skeptical review of an administrator’s decision.

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For these reasons, I find that Weinberger failed to establish that a high degree of
skepticism was warranted in this case and that the District Court properly determined that it
could reverse Reliance’s denial of benefits only if the denial was arbitrary and capricious.
Along the sliding scale, the District Court appropriately accorded Reliance’s decision a
moderate degree of deference. In light of this standard, I also find that the District Court
properly granted summary judgment in favor of Reliance, as its decision was supported by
the record. Accordingly, I would affirm the judgment of the District Court.

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