Facts

After being diagnosed with liver cirrhosis and receiving a liver transplant, plaintiff Earl Durham could no longer perform his job as Vice President of Real Estate and Facilities for a large mortgage company. His group long-term disability insurer, defendant Aetna Life Insurance Company, after paying his benefits for 24 months, terminated them based on the policy's two-year limit on benefits for disabilities primarily caused by alcohol abuse. Plaintiff filed an ERISA lawsuit against defendant seeking his disability benefits.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant erroneously applied the policy's alcohol abuse limitation clause, his disability was not caused by alcohol abuse, he was still disabled, and defendant owed him additional benefits. Plaintiff also contended that he was entitled to recover his reasonable attorneys' fees and costs under 29 U.S.C. section 1132(g)(1) and Hardt v. Reliance Standard Life Ins. Co., 560 U.S. 242 (2010), because he successfully prosecuted an ERISA lawsuit to collect his disability benefits.

DEFENDANT'S CONTENTIONS: Defendant contended that it rightfully applied the policy's alcohol abuse limitation clause to plaintiff's claim and rightfully terminated his benefits.

Insurer

Aetna Life Insurance Company

Result

Defendant agreed to pay plaintiff his remaining disability benefits. The case settled for $560,885.

Other Information

Defendant, while conceding that plaintiff was able to collect attorneys' fees, opposed plaintiff's motion for attorneys' fees, costs and interest, contending that his attorneys' fees were excessive and should be cut by 80 percent. Defendant offered to pay plaintiff just $35,000 for attorneys' fees. The court granted plaintiff's motion for attorneys' fees, costs and interest. The court rejected defendant's proposed 80 percent cut to plaintiff's attorney's fees and its arguments that plaintiff's counsel spent too much time on research and strategy and communicating with their client. The court concluded that the firm's three attorneys' 2018 to 2019 hourly rates of $750, $525 and $375 were reasonable for ERISA work given their skills, experience and reputation. The court awarded plaintiff $89,353 in attorneys' fees and costs, and pre-judgment interest.