U.S. Labor Department obtains court order requiring Chatsworth, Georgia, trucking company to pay unpaid health claims

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has obtained a default judgment against Chatsworth, Georgia-based Bryant Transportation and a company official, E. Lester Bryant. The company was found liable for approximately $85,000 in unpaid health claims owed to participants between May 2002 and February 2003.

“The actions of these defendants saddled workers with unpaid health claims,” said Howard Marsh, regional director of the Atlanta office of the Employee Benefits Security Administration (EBSA). “This judgment seeks to restore money to the plan so the health care benefits promised to workers and their families can be paid.”

The default judgment, issued by the U.S. District Court in Rome, Georgia, requires the defendants to pay all legitimate unpaid claims incurred under the plan, notify all plan participants of their rights, provide documentation to the Labor Department showing their attempt to contact participants and provide information to the department for participants they are unable to contact. The defendants must also provide semi-annual reports accounting for all submitted claims and the status of those claims.

Additionally, the judgment bars the company and E. Lester Bryant from future service as fiduciaries to any plan covered by the Employee Retirement Income Security Act (ERISA).

In 2006, the Labor Department filed a lawsuit on behalf of 80 health plan participants alleging that the company and its officers violated ERISA by failing to prudently select and monitor the plan and its administrator, Meridian Benefits Inc., and to ensure that the company paid all claims. At the time of the alleged improper actions, E. Lester Bryant was the company’s president.

The suit also alleged that Meridian Benefits unsuccessfully attempted to collect more than $85,000 from the defendants to cover the shortfall between the claims actually submitted and the expenses incurred.

Employers and workers can reach EBSA’s Atlanta Regional Office at 404.562.2156 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Bryant Transportation Inc.
Civil Action File Number 4:06-cv-0249-HLM

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Archived News Release — Caution: Information may be out of date.