Douglas A. Lee, II and Ashlynn Estay have filed a lawsuit against R&R Home Care, Inc., Medical Brokers Management, Inc., and Jay Weil, III in the United States District Court for the Eastern District of Louisiana. The case, bearing ID 2:24-cv-00836-SM-JVM, was filed on April 3rd, 2024. The plaintiffs allege violations of the Employee Retirement Income Security Act (ERISA) and Louisiana law in connection with their late relative Karen Lee's employer-provided life insurance.
The complaint states that Karen Lee was an employee of Medical Brokers Management and received life insurance benefits during her employment. It is alleged that both R&R Home Care and Medical Brokers Management are alter-egos of each other, with common ownership and business operations. Defendant Jay Weil, as an owner of both entities, is held liable under ERISA and Louisiana law for certain acts and omissions related to the insurance coverage.
The plaintiffs claim that Karen Lee was led to believe she had life insurance coverage worth $115,000 until her death on September 18th, 2022. However, it is alleged that her coverage was terminated by United of Omaha Life Insurance Company effective March 1st, 2022 due to R&R no longer meeting their underwriting guidelines.
The plaintiffs seek judgment against the defendants for their failure to notify Karen Lee about the termination of her life insurance policy which deprived her of making alternative arrangements for her heirs. They argue this failure constitutes a breach of ERISA obligations and warrants personal liability under ERISA through piercing the corporate veil.