Opinion
04-cv-1804.
September 9, 2004
EXPLANATION AND ORDER
On April 26, 2004, plaintiff filed this action against defendants Liberty Life Assurance Company of Boston ("Liberty Life"), Alco Industries, Inc., and Alco Industries, Inc. Group Long Term Disability Plan. In Counts I and III, plaintiff alleges violations of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq. ("ERISA") by all defendants and seeks recovery of attorney's fees and costs pursuant to ERISA, 29 U.S.C. § 1132(g)(1). In Count II, plaintiff alleges violations of Pennsylvania's bad faith statute, 42 Pa. C.S.A. § 8371, by defendant Liberty Life.
On June 3, 2004, Liberty Life moved to dismiss plaintiff's bad faith claim, arguing that ERISA preempts claims under the Pennsylvania bad faith statute. On September 7, 2004, the Third Circuit held for the first time that Pennsylvania's bad faith statute, 42 Pa. C.S. § 8371, is indeed preempted by ERISA.Barber v. Unum Life Insurance Co., No. 03-4363, 2004 U.S. App. LEXIS 18827, 2004 WL 1964500 (3d Cir. Sept. 7, 2004). Count II is therefore preempted and defendant's motion to dismiss Count II is granted.