Judi Peterson sought long-term disability benefits based on chronic fatigue syndrome, reporting persistent exhaustion, cognitive impairment, and inability to sustain reliable attendance or productivity in a competitive work environment. Treating providers documented limitations inconsistent with full-time employment.
AT&T terminated benefits and defended the decision under a discretionary standard of review, asserting that the evidence failed to support ongoing disability. Kantor & Kantor challenged the termination as a selective evaluation of the record that minimized functional impact in favor of insurer-chosen interpretations.
The court found that AT&T abused its discretion by failing to fairly evaluate the medical evidence and by discounting the real-world functional limitations caused by chronic fatigue syndrome. The ruling reversed the termination and reinforced protections for claimants with conditions that do not lend themselves to simple objective testing.
