Peralta v. Hispanic Business, Inc., 419 F.3d 1064 (9th Cir. 2005)

Carmen Peralta worked as a special events manager for Hispanic Business, Inc. (HBI). Between January 1, 1999 and July 2000, HBI provided a long-term disability (LTD) insurance policy to its employees, including Peralta. In July 2000, HBI cancelled the LTD policy; in October 2000, Peralta was injured in an automobile accident in which she suffered serious injuries. When Peralta attempted to make a claim for LTD benefits after the accident, she learned that the policy had been cancelled. Peralta sued HBI for breach of fiduciary duty under ERISA for its failure to give adequate notice of the cancellation of the LTD policy. The district court granted HBI’s motion for summary judgment, which the Ninth Circuit affirmed. The Court held that although HBI had failed to provide Peralta with timely notice of the termination of her benefits under the LTD policy, she could not recover monetary damages since there was no evidence that HBI actively and deliberately misled her.