In Cole v. Trinity Health Corporation, No. 14-1408 (8th Cir. 2014), the following obtained. When plaintiff Bonnie Cole stopped working for defendant Trinity Health Corporation (“Trinity Health”), the company failed to timely notify Cole of their right to COBRA continuing health care coverage, as it was required to do. Cole filed this suit, seeking statutory damages, which may be awarded in the court’s discretion after a violation of this notification requirement. However, the district court declined to award damages and granted summary judgment to Trinity Health.
The Eighth Circuit Court of Appeals (the “Court”) was asked to decide whether the district court’s decision was in error. The Court found no abuse of discretion in the district court’s denial of statutory damages and therefore it affirmed the grant of summary judgment. The Court noted that, in this case, there is no dispute that Trinity Health violated the COBRA notification requirement. The question before the Court, then, is whether the district court erred in declining to assess statutory damages. Since the decision to assess these damages is left to the discretion of the district court, the Court will review that decision for abuse of discretion.
The district court had reasoned that Cole was not entitled to actual damages because the amount of her unreimbursed medical bills from May 2012 was less than the COBRA premiums she would have had to pay to maintain medical insurance. The district court also reasoned that Cole was not entitled to statutory penalties because “Trinity Health acted in good faith,” “[Cole was] not harmed or prejudiced by Trinity Health’s tardy notice of …COBRA rights,” and “[Cole was] provided continued medical coverage for approximately eleven months after [her] termination.”. The Court found that the district court’s denial of statutory damages on the foregoing grounds did not involve any clearly erroneous findings and was not otherwise an abuse of discretion.