ERISA disability claimants can receive attorney fees with “some degree of success”

On May 24, 2010, the United States Supreme Court rendered an opinion in the case of Hardt V. Reliance Standard, which is a major victory for disability insurance claimants that have a long-term disability policy governed by ERISA. Reliance Standard, a disability insurance carrier attempted to argue that a disability claimant was not entitled to attorney fees because she was not a “prevailing party” after her case was remanded back to Reliance. For a background summary of this case see Can I recover attorney fees if my long-term disability claim is governed by ERISA?

The United States Supreme Court rejected Reliance Standard’s argument and held that “a claimant need not be a prevailing party to be eligible for attorney’s fees award under 29 USA 1132(g)(1). The court stated the following circumstances under which a court may award attorney’s fees:

“a claimant must show some degree of success on the merits before a court may award attorney’s fees under § 1132(g)(1). A claimant does not satisfy that requirement by achieving trivial success on the merits or a purely procedural victory, but does satisfy it 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.”

In addition to the above criteria a district court may also consider the following five factors in deciding whether to award attorney fees:

  1. the degree of opposing parties’ culpability or bad faith;
  2. the ability of opposing parties to satisfy an award of attorney’s fees;
  3. whether an award of attorneys’ fees against the opposing parties would deter other persons acting under similar circumstances;
  4. whether the parties requesting attorney’s fees sought to benefit all participants and beneficiaries of an ERISA plan or to resolve a significant legal question regarding ERISA itself;
  5. the relative merits of the parties’ positions.

I think the court’s recent ruling will make it easier for disability claimant’s to receive an award of attorney fees, but there is obviously no guarantee that fees will be awarded. It will be interesting to see how the courts will rule on attorney fee awards following this opinion from the Supreme Court. The new “some degree of success” standard will generate all kinds of new case law! The court’s ruling is a rare ERISA victory for disability claimants. I hope this ruling will deter disability insurance companies from wrongfully denying disability claims.

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FAQ

Do you help Reliance Standard claimants nationwide?

We represent Reliance Standard clients nationwide and we encourage you to contact us for a FREE immediate phone consultation with one of our experienced disability insurance attorneys.

Can you help with a Reliance Standard disability insurance policy?

Our disability insurance lawyers help policy holders seeking short or long term disability insurance benefits from Reliance Standard. We have helped thousands of disability insurance claimants nationwide with monthly disability benefits. With more than 40 years of disability insurance experience we have helped individuals in almost every occupation and we are familiar with the disability income policies offered by Reliance Standard.

How do you help Reliance Standard claimants?

Our lawyers help individuals that have either purchased a Reliance Standard long term disability insurance policy from an insurance company or obtained short or long term disability insurance coverage as a benefit from their employer.

Our experienced lawyers can assist with Reliance Standard:

  • ERISA and Non-ERISA Appeals of Disability Benefit Denials
  • ERISA and Non-ERISA Disability Benefit Lawsuits
  • Applying For Short or Long Term Disability Benefits
  • Daily Handling & Management of Your Disability Claim
  • Disability Insurance Lump-Sum Buyout or Settlement Negotiations

Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

Do I have to come to your office to work with your law firm?

No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

How can I contact you?

When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

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Diane H. (Maryland)

I am a 62-year-old woman that got injured on the job and was unable to work. I had long term insurance that was paid by my job. In September 2017, I request a buyout from The Hartford insurance company. After receiving no word from The Hartford insurance company, for 10 months, I made the decision, to seek legal action.

My experience with Dell & Schaefer, particularly Attorney Rachel Alters and her staff was brilliant. I was very fortunate to get Attorney Rachel Alters to represent me on my case. From the time of my first conservation with Attorney Rachel Alters, I knew she had my best interest at heart, I felt confident that my case would be an open and shut case.

All my questions are always answered, I never felt confused in the process, and phone calls are always returned the same day if possible or the next. My e-mails were always answered in a timely matter.

Words cannot express how grateful I am for Attorney Rachel Alters, and her staff assisting me in the short amount of time that was given for the success in my case. Attorney Rachel Alters worked so diligently hard in my disability buyout case to bring a settlement as quickly as possible. In addition, Attorney Rachel Alters, is very detailed oriented, and follows through if there are delays.

Thank you for everything that you’ve done to help and support me. I am so grateful to Rachel Alters and her staff. They are awesome!

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