You already know that an ERISA plan recipient may recover attorney fees when prevailing in an action to enforce rights under the plan.

But to win attorney fees, the claimant must show:

  • “[success] on [a] significant issue of litigation which achieves some of the benefit…sought in bringing the suit…’”
  • something more than “‘trivial success on the merits’ or a ‘purely procedural victory….’”

SO… what IS “trivial success on the merits” or a “purely procedural victory”?

This new decision explains when courts deny attorney fee motions by claimants, when cases are remanded. Woolsey v. Aetna Life Ins. Co., Cause No. CV-18-00578-PHX-SMB (D. AZ. August 4, 2020)(Court denied plaintiff’s motion for fees after remanding the case for “procedural irregularities.”)

FACTS: Plaintiff Woolsey initially obtained ERISA-governed short term disability benefits. Aetna later discontinued those benefits, and denied long term disability benefits. Plaintiff sued, seeking benefits, and moved for summary judgment.

The District Court, concluding that Aetna’s claim denial was “generally on solid ground,” denied Plaintiff’s motion for summary judgment but “remanded the case to Aetna to remedy” a “few [procedural] irregularities”.

The “procedural irregularities” found by the Court were:

  1. Aetna’s assessment of the claim “was made without a specialist’s initial consultation clinical notes”;
  2. Aetna failed to address Plaintiff’s specific vocational requirements;
  3. Aetna failed to communicate in sufficient detail how Plaintiff could perfect his appeal;
  4. Aetna’s reviewers failed to consider the cumulative effects of his claimed conditions.” Op. at 2.

Plaintiff moved for an award of attorney fees, claiming Woolsey had succeeded on a “significant issue of litigation which achiev[ed] some of the benefit sought in bringing the lawsuit.”

ISSUE: Whether Plaintiff was entitled to attorney fees when the District Court remanded the claim to Aetna to “remedy” a “few procedural irregularities”?

DISTRICT COURT HELD: NO — Attorney Fees DENIED.

1. “A[n] [ERISA] plan recipient who prevails in an action to enforce rights under the plan is ordinarily entitled to a reasonable attorney’s fee if the participant ‘succeed[s] on any significant issue of litigation which achieves some of the benefit…sought in bringing the suit…’”. Op. at 3.

2. “A claimant does not satisfy that requirement by achieving ‘trivial success on the merits’ or a ‘purely procedural victory….’” Op. at 3. (Emph. added).

3. “[G]iven the particular circumstances here, Plaintiff’s claim constitutes no more than “purely procedural victory” that falls short of what Hardt requires.” Op. at 3.

4. “Plaintiff’s claim here [does] not compel the conclusion that Plaintiff achieved “some success on the merits.” Op. at 4.

Have a great Labor Day Weekend!

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Mike Reilly Mike Reilly

Mike Reilly is a nationally recognized labor, employment and employee benefits attorney, named one of the “Top 100 Most Powerful Employment Attorneys in the Nation” for the past five consecutive years by Human Resource Executive®. He has decades of experience providing strategic employment…

Mike Reilly is a nationally recognized labor, employment and employee benefits attorney, named one of the “Top 100 Most Powerful Employment Attorneys in the Nation” for the past five consecutive years by Human Resource Executive®. He has decades of experience providing strategic employment advice, and has represented clients in more than 75 jury trials, arbitrations, bench trials and claims before the EEOC and Washington State Human Rights Commission.

Small and large employers retain Mike for his strategic advice and decades of experience in employment issues and litigation, business decisions and litigation avoidance. Mike provides advice in claims involving discrimination, retaliation, wrongful discharge, disability accommodation, ERISA and non-ERISA employee benefit claims, and wage/hour claims. He served as lead counsel in an employee raiding/trade secret case as reported in the Wall Street Journal, and defends employers in class action claims.

Mike’s remarks on employment issues have been quoted in NewsweekCorporate Legal TimesSeattle TimesEmployee Relations Law JournalPuget Sound Business JournalCFO.com, and other professional journals and management publications. Chambers USA’s Guide to America’s Leading Lawyers for Businessrates Mike in the top ranking (band one) for his work in labor and employment law, and has described him as “one of Seattle’s top-rate attorneys” who is “truly phenomenal [with] superb legal instincts” and “an amazingly assertive litigator.” His clients include Nordstrom, Seattle Seahawks, Home Depot, KeyBank, Starbucks, Fred Hutchinson Cancer Research Center, Red Robin and Seattle Chamber of Commerce, among others.