Holford v. Exhibit Design Consultants

218 F. Supp. 2d 901 (2002)

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Holford v. Exhibit Design Consultants

United States District Court for the Western District of Michigan
218 F. Supp. 2d 901 (2002)

  • Written by Alexander Hager-DeMyer, JD

Facts

Exhibit Design Consultants (Exhibit) (defendant), a small design firm, terminated the employment of Lisa Holford (plaintiff) and failed to provide her with written notice of her right to continue health coverage under the Consolidated Omnibus Reconciliation Act (COBRA). Exhibit improperly relied on its employee handbook as sufficient notice, and Holford filed suit against Exhibit in the United States District Court for the Western District of Michigan. Holford filed suit against Exhibit for failing to provide proper notice of her option to continue coverage in violation of COBRA, an amendment to the Employee Retirement Income Security Act (ERISA). Holford sought actual damages to cover unpaid medical expenses, the maximum daily statutory penalty available for the time since the date of her termination, and attorney’s fees. Holford claimed that during the coverage gap, she opted out of some medical procedures due to finances and that her husband was forced to deplete his retirement fund to cover medical expenses. Exhibit admitted to giving inadequate written notice but objected to Holford’s proposed relief and offered to retroactively insure the COBRA medical expenses. The court assessed the requested relief.

Rule of Law

Issue

Holding and Reasoning (Enslen, J.)

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