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Pre-Disability Earnings Archives

What Are Pre-Disability Earnings?

A recent ruling received by DeBofsky, Sherman & Casciari examined the issue of how to determine pre-disability earnings.  In Cheney v. Standard Ins. Co., 2015 WL 2015 U.S.Dist.LEXIS 30918 (N.D.Ill. March 13, 2015)(Issue: Pre-Disability Earnings). In an earlier ruling (Cheney v. Standard Ins. Co., No. 13 C 4269, 2014 WL 4259861 (N.D. Ill. Aug. 28, 2014)), the court established that the plaintiff, Carole Cheney, a former partner in the law firm of Kirkland & Ellis, was entitled to disability benefits.  In this ruling, the court resolved the earnings forming the basis of the benefit amount.  The question was whether Cheney's 2010 or 2011 earnings would be used; and the resolution of the question depended on when plaintiff ceased "active work."  The policy provided that the benefit for partners was based on the average monthly compensation during the tax year prior to the last day of active work.  The issue was significant because Cheney took significant time off from work in 2010 due to her medical condition that ultimately caused her to cease working altogether in 2012.  Cheney argued her last day of active work was January 3, 2012 when a scheduled leave of absence commenced, while Standard asserted that the last date of active work was December 19, 2011, which was the plaintiff's last day of working for the firm.  The court agreed with Cheney.

DeBofsky, Sherman & Casciari, PC