Hegger v. UNUM Life Insurance Company of America et al
Filing
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ORDER DENYING FEE REQUEST, CONFIRMING COSTS, AND VACATING HEARING by Judge Alsup granting in part and denying in part 66 Motion for Attorney Fees; finding as moot 74 Stipulation (whalc1, COURT STAFF) (Filed on 4/9/2013)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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TAMI HEGGER,
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For the Northern District of California
United States District Court
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No. C 11-04229 WHA
Plaintiff,
v.
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UNUM LIFE INSURANCE COMPANY
OF AMERICA, et al.,
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ORDER DENYING FEE
REQUEST, CONFIRMING
COSTS, AND VACATING
HEARING
Defendants.
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A bench trial in this ERISA denial-of-disability benefits action entered judgment in favor
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of defendants. Defendants now move for an award of attorney’s fees and costs under 29 U.S.C.
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1132(g)(1), which provides a court with discretion to award attorney’s fees and costs in an
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ERISA action. Defendants’ motion is GRANTED IN PART AND DENIED IN PART. The May 2
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hearing is VACATED.
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Defendants seek $83,632.50 in attorney’s fees plus unspecified supplemental fees and
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costs incurred in connection with the instant motion. When a prevailing party can point to
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“some degree of success on the merits,” our court of appeals has set forth a five-factor test to
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determine whether a court should award discretionary fees under Section 1132(g)(1).
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(1) the degree of the opposing parties’ culpability or bad faith; (2)
the ability of the opposing parties to satisfy an award of fees; (3)
whether an award of fees against the opposing parties would deter
others from acting under similar circumstances; (4) whether the
parties requesting fees sought to benefit all participants and
beneficiaries of an ERISA plan or to resolve a significant legal
question regarding ERISA; and (5) the relative merits of the
parties’ positions.
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Simonia v. Glendale Nissan/Infiniti Disability Plan, 608 F.3d 1118, 1121 (9th Cir. 2010).
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After due consideration of all the attendant facts and circumstances, this order concludes
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that an award of attorney’s fees to defendants is not warranted. Defendants’ repeated assertions
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that plaintiff’s suit was “meritless” are incorrect. Plaintiff’s arguments at trial had some merit,
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although defendants ultimately prevailed. The trial record does contain some evidence of bad
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faith on the part of plaintiff, but this point was not definitively established. These factors cancel
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each other out. As a result, it is not clear that a fee award would have the effect of deterring non-
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meritorious suits any more than meritorious ones.
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As for the remaining factors, the present record does not establish that plaintiff — to
whom defendants voluntarily paid disability benefits for five years and who has recently been
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For the Northern District of California
United States District Court
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approved for Social Security benefits — would be able to satisfy a fee award. It is also clear that
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the fee request is unrelated to benefitting other ERISA plan participants, and the judgment did
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not resolve a significant legal question regarding ERISA.
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Accordingly, defendants’ request for attorney’s fees (and unspecified supplemental fees)
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is DENIED. Defendants’ request for non-taxable costs of $2,837.79 is likewise DENIED.
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Plaintiff argues that the above factors should preclude an award of taxable costs as well. This
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order disagrees, and the default rule that the losing party pays costs shall be applied. This order
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therefore CONFIRMS the bill of costs already entered by the Clerk in favor of defendants for a
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total sum of $1,181.20 (Dkt. No. 73).
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The May 2 hearing is VACATED. The stipulation to continue the hearing date (Dkt.
No. 74) is DENIED AS MOOT.
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IT IS SO ORDERED.
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Dated: April 8, 2013.
WILLIAM ALSUP
UNITED STATES DISTRICT JUDGE
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