7th Circuit Follows 8th Regarding Administrator “Non-Decisions”
The 7th Circuit Court of Appeals has just held in Pakovich v. Broadspire Services, Inc., that when a plan administrator fails to issue a benefits determination, and there is no administrative decision regarding a claim on record, the Court is not to make a decision in lieu of the administrator. Instead, the case is remanded to the administrator, who must make a clear benefits determination decision. Only after all administrative options are exhausted may either party to said decision appeal the decision to the Federal Courts under ERISA.
http://wislawjournal.com/article.cfm/2008/07/28/071520-Pakovich-v-Broadspire-Services-Inc