Should I settle my LTD claim or go to federal court?

The decision to settle or litigate an ERISA LTD claim turns on several variables that an experienced attorney can model once the full administrative record is in hand. Unlike Personal Injury cases, ERISA damages are generally limited to benefits owed plus attorney fees — there are no punitive damages or emotional distress awards under 29 U.S.C. §1132(a)(1)(B) in most circuits. That ceiling shapes settlement math significantly.

Settlement is often attractive when: the remaining benefit period is long (five to twenty years), the claimant is young and the insurer wants to close a large future liability, or the administrative record has meaningful gaps that make de novo review uncertain. A lump-sum settlement can be structured to address SSDI offset considerations and, where applicable, Medicare Secondary Payer obligations.

Litigation makes more sense when the plan does not grant discretion (de novo review applies), when the insurer committed procedural violations under 29 CFR 2560.503-1 (such as failing to provide required notices or imposing unreasonable deadlines), or when the medical evidence is strong and the insurer’s denial relied on cherry-picked IME opinions that conflict sharply with a long treating-physician record.

Courts in the Second Circuit — S.D.N.Y. and E.D.N.Y. — have a developed body of ERISA precedent. Knowing which judges tend toward careful review of structural conflicts under Glenn matters. We handle ERISA LTD cases on contingency. No fee unless we win.