The U.S. Second Circuit Court of Appeals is upholding a decision not to require the Walt Disney Co. to pay severance benefits for a disabled former employee, finding the company’s definition of “layoff” was ambiguous enough to allow for it to withhold those payments.

Judge Susan Carney Judge Susan Carney

In an opinion issued Wednesday, Judge Susan L. Carney, with Judge Joseph F. Bianco concurring, affirmed a District Court decision that found the terms of Disney’s severance plan didn’t guarantee coverage in the case of Nancy J. Soto, who was terminated in 2018 after health issues including a stroke left her unable to work.

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