The Supreme Court has ruled in Hardt v. Reliance Standard Life Insurance Company, No 09-448 (May 24, 2010), that only "some degree of success" is necessary for an award of attorney's fees under ERISA on a disability insurance benefits claim.
ERISA, at 29 U.S.C. sec. 1132(g)(1), provides, in pertinent part, that "the court in its discretion may allow a reasonable attorney's fee and costs of action to either party." Given the absence of any statutory reference to a "prevailing party," the Court quickly and easily held that a "fee claimant need not be a 'prevailing party' to be eligible for an attorney's fees award" under sec. 1132(g)(1).
A fee claimant, the Court held, "must show 'some degree of success on the merits' before a court may award attorney's fees under" sec. 1132(g)(1). This threshold is satisfied "if the court can fairly call the outcome of the litigation some success on the merits without conducting a lengthy inquiry into the question whether a particular party's success was substantial or occurred on a central issue."
The petitioner, Hardt, met this threshold because she had successfully persuaded the district court that she had not been allowed a proper administrative review of her claim, which when remanded to the plan administrator resulted in the insurance company agreeing that she was entitled to benefits.
Robert L. Abell
www.RobertAbellLaw.com