holding that punitive damages are unavailable under ERISA
How later courts described this case
- holding that punitive damages are unavailable under ERISA
Written by the judges who cited it.
The opinion
IN THE DISTRICT COURT OF THE UNITED STATES FOR THE
MIDDLE DISTRICT OF ALABAMA, SOUTHERN DIVISION
RICHARD P. SHULTZ, )
)
Plaintiff, )
) CIVIL ACTION NO.
v. ) 1:16cv94-MHT
) (WO)
AETNA LIFE INSURANCE )
COMPANY and L-3 )
COMMUNICATIONS WELFARE )
PLAN, )
)
Defendants. )
OPINION AND ORDER
This case has been brought pursuant to the Employee
Retirement Income Security Act of 1974 (“ERISA”), as
amended, 29 U.S.C. § 1001, et seq. After being awarded
long-term-disability benefits because he can no longer
work, plaintiff Richard P. Shultz now seeks, under
ERISA’s fee-shifting provision, 28 U.S.C. § 1132(g)(1),
attorney’s fees and costs from defendants Aetna Life
Insurance Company and L-3 Communications Welfare Plan.
For the reasons below, the court holds that Shultz’s
petition for attorney’s fees and costs is due to be
granted, though not for the full amount requested.
I. BACKGROUND
As described in the magistrate judge’s first
recommendation, Shultz began working as an engineer for
a company in 2003. Rep. & Rec. (doc. no. 158) at 2.
After being diagnosed with bladder cancer in July 2013,
he could no longer work; his last day on the job was
July 23, 2013. One of his treating physicians stated
that Shultz had, “No ability to work ... due to
inoperable hernia & pulmonary emboli.” Id. at 3. The
physician later indicated that Shultz’s “Estimated
return to work date” was “Never.” Id. Based at least
in part on that physician’s findings, Aetna Life
approved Shultz’s short-term disability benefits
beginning in September 2013 and later approved his
claim for 24 months of long-term-disability benefits
beginning on October 22, 2013. Aetna Life informed
Shultz that, should he still be disabled after 24
months, he would need to meet a more stringent
definition of “disabled” to continue receiving
benefits; specifically, he would need to show that he
was “unable to work at any reasonable occupation solely
because of an illness, injury, or disabling pregnancy-
related condition.” Id. at 4.
At Aetna Life’s prompting, Shultz applied for, and
received, Social Security Disability Income. Aetna
Life sought reimbursement for those payments to recoup
part of the payments it had made to Shultz. Id. at 5.
However, the magistrate judge noted that the standard
for Social Security disability benefits--which Shultz
satisfied--is much higher than Aetna Life’s “reasonable
occupation” standard. Id. at 11.
As Shultz continued the treatment for his cancer
and as the end of the 24-month period approached, Aetna
Life investigated whether Shultz was able to work in
“any reasonable occupation.” A n Aetna Life nurse
reviewed Shultz’s file and noted that he was “inclined
to conclude, based on the current medical records in
the file, that Richard Shultz would have ful[l] time
functional capacity.” Claim File Pt. 2 (doc. no.
115-33); see Rep. & Rec. (doc. no. 158) at 5. Aetna
Life provided the nurse’s assessment to Shultz’s
treating physicians for their approval, and both signed
it. However, each physician later wrote with concerns
about Shultz’s ability to work; in fact, one physician
wrote that “th[e] letter noting [his] signature ... was
in error on the pre-printed form submitted by Aetna.”
Rep. & Rec. (doc. no. 158) at 6.
Aetna Life eventually terminated Shultz’s
long-term-disability benefits based on a “Transferable
Skill Analysis” that found that he could work as a
“boat dispatcher,” “purser,” or “test desk supervisor,”
a job very similar to the one that he was previously
deemed incapable of working. Id. at 6-7 (referring to
Shultz’s prior job as a “Help Desk Supervisor”). When
Shultz appealed Aetna Life’s determination to a higher
level, Aetna Life requested that an independent
physician, Dr. Elena Antonelli, complete an assessment.
See id. at 7.
Dr. Antonelli said she attempted to reach Shultz’s
treating physicians, but that they failed to return her
calls; at least one of the physicians disputed that
account. Dr. Antonelli never physically examined
Shultz but, based on a telephone conversation and a
review of his medical records, she determined that he
could return to work. She later read letters,
submitted by Shultz’s treating physicians, which stated
that they did not agree that Shultz was able to return
to work, but the letters did not affect her decision.
See id. at 8. Dr. Antonelli noted that neurocognitive
testing might be helpful to better understand Shultz’s
condition, but the record contains no indication that
such testing occurred. Based on Dr. Antonelli’s
review, Aetna Life denied Shultz’s appeal. See id.
Shultz then filed suit in this federal court,
claiming that Aetna Life and the Welfare Plan
improperly withheld long-term-disability and other
related benefits from him. The magistrate judge, to
whom the case had been referred, recommended that the
matter be remanded to Aetna Life’s administrator so the
parties could “complete the record and obtain a new
decision.” Id. at 13. In a later recommendation
noting again that the court was without the benefit of
a complete record, the magistrate judge declined the
Welfare Plan’s request to rule as to the claim against
it for non-long-term-disability benefits. See Supp.
Rep. & Rec. (doc. no. 164). Over objections, the court
adopted both of the magistrate judge’s recommendations
and remanded the case to the Welfare Plan for a new
determination on a complete record. See Judgment (doc.
no. 172).
Following the remand order, Shultz timely filed the
pending petition for attorney’s fees and costs. After
he filed the petition, Aetna Life notified him that it
was reinstating his long-term-disability benefits. See
Pl.’s Supp. to Mot. for Attorneys’ Fees (doc. no. 184-
1) at 1. He supplemented his petition to reflect that
he had prevailed in getting his long-term-disability
benefits. See id. But he also asked the court to keep
the case pending because the parties still had to
address “ancillary benefits and a few secondary
issues.” Id. Shultz has now represented to the court
that the parties “recently resolved all remaining
administrative issues not presently before the
[c]ourt.” Pl.’s Statement Regarding Conclusion of
Admin. Process (doc. no. 187) at 1.
Aetna Life and the Welfare Plan oppose Shultz’s
petition for fees and costs. They argue that (1) he
did not achieve the required “success on the merits” to
warrant attorney’s fees; (2) the court should exercise
its discretion to deny attorney’s fees; and (3), in the
alternative, the court should dramatically reduce his
requested fees and eliminate his requested expenses.1
The court will address each of these arguments in turn.
1. In telephonic conference calls on April 5 and
December 19, 2018, the parties declined the opportunity
to present supplemental briefing on: (1) Aetna Life’s
decision to reinstate Shultz’s long-term-disability
II. DISCUSSION
The court’s analysis proceeds in two parts. First,
the court considers whether Schultz is entitled to an
award of attorney’s fees and expenses from Aetna Life
and the Welfare Plan under 29 U.S.C. § 1132(g)(1).
Second, the court considers the amount of attorney’s
fees Schultz may recover.
A. Schultz has demonstrated that he is entitled to
attorney’s fees under ERISA.
Under § 1132(g)(1), “the court in its discretion
may allow a reasonable attorney’s fee and costs of
action to either party” provided that “the fee claimant
has achieved ‘some degree of success on the merits.’”
Hardt v. Reliance Standard Life Insurance Co., 560 U.S.
242, 245 (2010) (quoting Ruckelshaus v. Sierra Club,
463 U.S. 680, 694 (1983)). Following his new benefit
determination and award of long-term-disability
benefits; and (2) the resolution of ancillary benefits
and administrative matters.
benefits, there is no question that Shultz has
satisfied this threshold requirement.
However, even when a party has achieved some degree
of success on the merits, there is “no presumption in
favor of granting attorney’s fees to a prevailing
claimant in an ERISA action.” Freeman v. Cont’l Ins.
Co., 996 F.2d 1116, 1119 (11th Cir. 1993). Instead,
the court is required to consider the following five
factors: “(1) the degree of the opposing parties'
culpability or bad faith; (2) the ability of the
opposing parties to satisfy an award of attorneys'
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 attorneys' fees sought to benefit all
participants and beneficiaries of an ERISA plan or to
resolve a significant legal question regarding ERISA
itself; and (5) the relative merits of the parties'
positions.” Iron Workers Local No. 272 v. Bowen, 624
F.2d 1255, 1266 (5th Cir. 1980) (footnote omitted);2 see
also McKeown v. Blue Cross Blue Shield of Alabama, 497
F. Supp. 2d 1328, 1332 (M.D. Ala. 2007) (Thompson, J.).
“No one of these factors is necessarily decisive, and
some may not be apropos in a given case, but together
they are the nuclei of concerns that a court should
address.” Iron Workers Local, 624 F.2d at 1266.
Applying these factors to the case, the court finds
that Schultz is entitled to an award of attorney’s
fees.
1. Culpability or Bad Faith
The culpability-or-bad-faith factor weighs in
Shultz’s favor. Bad faith is a high bar. It is the
“conscious doing of a wrong,” United States v. Gilbert,
198 F.3d 1293, 1299 (11th Cir. 1999); “knowingly or
recklessly pursu[ing] a frivolous claim or engag[ing]
2. See Bonner v. City of Prichard, 661 F.2d 1206
(11th Cir. 1981) (en banc) (adopting as binding
precedent all decisions of the former Fifth Circuit
handed down prior to the close of business on September
30, 1981).
in litigation tactics that needlessly obstruct the
litigation of non-frivolous claims,” Schwartz v. Millon
Air, Inc., 341 F.3d 1220, 1225–26 (11th Cir. 2003); or
“deliberate deception, gross negligence or
recklessness,” Am. Bankers Ins. Co. of Fla. v.
Northwestern Nat'l Ins. Co., 198 F.3d 1332, 1336 (11th
Cir. 1999); see also Cross v. Quality Mgmt. Grp., LLC,
491 F. App'x 53, 56 (11th Cir. 2012).
But culpability is a lower standard than bad faith.
See Wright v. Hanna Steel Corp., 270 F.3d 1336, 1345
(11th Cir. 2001). Courts have found that an
administrator’s failure to consider all the appropriate
medical evidence in the case indicates, at minimum,
culpability. See Hines v. Unum Life Ins. Co. of Am.,
110 F. Supp. 2d 458, 469 (W.D. Va. 2000) (Williams, J.)
(finding bad faith in part because administrator failed
to consider relevant medical evidence); Lijoi v. Cont’l
Cas. Co., 414 F. Supp. 2d 228, 249 (E.D.N.Y. 2006)
(Glasser, J.) (finding culpability, but not bad faith,
on the part of administrator who failed to consider new
evidence of disability); Powers v. Thermadyne Holdings
Corp., No. 99-1427-WEB, 2001 WL 487902, at *11 (D. Kan.
Feb. 6, 2001) (Brown, J.) (declining to find bad faith
but finding that defendant’s failure to consider
appropriate evidence weighed in favor of awarding
attorney’s fees).
The court finds that Aetna Life and the Welfare
Plan acted with culpability because they failed to
consider all relevant information before making a
benefits determination. They argue that they had no
obligation to seek out “evidence which is in the
possession of others.” Def.’s Resp. to Mot. for
Summary Judgment (doc. no. 134-15) at 31. But it later
came to light--after a protracted discovery dispute the
court had to resolve--that Aetna Life already had
access to Shultz’s medical records. See Sealed
Document (doc. no. 145). Moreover, in making its
benefits decision, Aetna Life did not consider any
evidence produced in Shultz’s Social Security benefits
application, which Aetna Life itself prompted Shultz to
make.3 Aetna Life’s failure to give consider all
relevant evidence before denying Shultz’s claim points
to culpability on the insurance company’s part.
Because Aetna Life’s investigation was “not as
thorough as it should have been to provide an impartial
determination,” Anderson v. Unum Life Ins. Co. of Am.,
No. CIVA 2:01CV894-ID, 2007 WL 604728, at *6 (M.D. Ala.
Feb. 22, 2007) (DeMent, J.), this factor weighs in
favor of Shultz.
2. Ability to Satisfy the Award
The ability-to-satisfy-award factor weighs in favor
of Shultz, as Aetna Life and the Welfare Plan concede
that they have the financial resources to satisfy the
award. See Def.’s Resp. in Opp. To Pl.’s Pet. (doc.
no. 182) at 20-21.
2. This evidence is not contained in the record.
See Rep. & Rec. (doc. no. 158) at 13.
3. Deterrence
The deterrence factor weighs in favor of an award
of attorney’s fees. Aetna Life and the Welfare Plan
argue that, because they have done “nothing to be
deterred,” id. at 21, this factor weighs against an
award. Specifically, they contend that, were this
factor to weigh against them, the court would risk
improperly awarding punitive damages in violation of
binding precedent. See Mass. Mut. Life Ins. Co. v.
Russell, 473 U.S. 134, 144-46 (1985) (holding that
punitive damages are unavailable under ERISA).
That argument is based on a misunderstanding of
this factor. A finding that Aetna Life’s conduct
should be deterred does not render punitive an award of
attorney’s fees. Instead, “the deterrent value of an
award of attorneys' fees is high.” National Cos.
Health Benefit Plan v. St. Joseph's Hosp., Inc., 929
F.2d 1558, 1575 (11th Cir. 1991), abrogated on other
grounds by Geissal v. Moore Med. Corp., 524 U.S. 74
(1998). If a culpable party did not have to pay
attorney’s fees, “it would only be liable for what it
should have covered before this litigation commenced.”
Id. “With nothing to lose but their own litigation
costs, other ERISA-plan sponsors might find it
worthwhile to force underfinanced beneficiaries to sue
them to gain their benefits or accept undervalued
settlements.” Id.
An award here would not punish Aetna Life and the
Welfare Plan; rather, it would deter future similar
conduct by all plan administrators who make benefits
decisions without considering the full administrative
record. Accordingly, this factor weighs in favor of an
award of attorney’s fees.
4. Whether an Award Would Benefit All Plan Members
or Resolve a Significant Legal Question
Regarding ERISA Itself
This factor only slightly favors Shultz. Shultz
admits this case did not seek to aid other plan
participants. Nonetheless, he argues that his briefing
on ancillary benefits addresses new questions, and that
the court’s ruling provides authority “setting out what
it takes for an insurer’s decision to be reversed.”
Pl.’s Reply Regarding Pet. for Atty’s Fees and Costs
(doc. no. 177) at 27.
Shultz’s argument on the ancillary-benefits issues
falls short. The court did not resolve the merits of
Shultz’s ancillary-benefits claims--those claims were
resolved by the parties.
But he fares better on his argument that the
court’s decision adds to ERISA jurisprudence. Although
the court did not conclusively resolve any legal
questions surrounding the plan’s interpretation, there
is precedential value in the court’s assessment of how
the plan administrator applied it. The court’s
decision provides guidance to plan administrators in
how they should make benefits decisions, which will
indirectly benefit other plan participants. It
likewise serves as persuasive authority for other
courts in deciding whether a benefits decision was
arbitrary and capricious. See Campbell v. United of
Omaha Life Ins. Co., 283 F. Supp. 3d 1138, 1143 (N.D.
Ala. 2017) (Ott, M.J.) (explaining that the court’s
ruling that an administrator’s denial of benefits was
erroneous “provide[s] some persuasive authority for the
future when a court must evaluate the proper course in
deciding whether to render a decision premised on the
record or to remand the case to an administrator”).
This factor thus weighs slightly in favor of Shultz.
5. The Relative Merits of Each Party’s Position
This factor clearly weighs in favor of Shultz. On
remand, the plan administrator found that Shultz was
entitled to long-term-disability benefits, a result
clearly evidencing that Shultz’s position on the merits
was correct. See Campbell, 283 at 1143 (“Plaintiff’s
position on the merits was correct, as evidenced by the
final determination by the Plan administrator on
remand.”).
After considering the Iron Workers factors, the
court finds that Shultz is entitled to an award of
attorney’s fees in this case.
B. Amount of Fees
Having found that Shultz is entitled to attorney’s
fees, the court must now determine the amount of fees
that are warranted. “The most useful starting point
for determining the amount of a reasonable fee is the
number of hours reasonably expended on the litigation
multiplied by a reasonable hourly rate.” Hensley v.
Eckerhart, 461 U.S. 424, 433 (1983). The court will
first consider the appropriate rate for Shultz’s
attorneys in this case.
1. Hourly Rate
The parties agree that one of Shultz’s attorneys,
Lee P. Fernon, is entitled to a rate of $ 250 per hour.
Similarly, the parties agree that Claudette Fowler, a
paralegal, is entitled to a rate of $ 125 per hour.
The parties disagree, however, as to the rate for
Thomas Sinclair. Shultz requests $ 475 per hour for
Sinclair, while Aetna Life and the Welfare Plan
maintain that Sinclair is entitled to a rate of not
more than $ 350 per hour.
A reasonable hourly rate “is the prevailing market
rate in the relevant legal community for similar
services by lawyers of reasonably comparable skills,
experience, and reputation.” Norman v. Hous. Auth. of
City of Montgomery, 836 F.2d 1292, 1299 (11th Cir.
1988). Generally, the market “rate of attorney's fees
is that of the place where the case is filed.” Cullens
v. Ga. Dep't of Transp., 29 F.3d 1489, 1494 (11th Cir.
1994). Notwithstanding this general rule, Sinclair
argues that he is entitled to a higher fee than the
local market can bear because “ERISA is a national
practice that is not normally compensated based solely
on the typical attorney rates in the area in question.”
Pl.’s Pet. for Atty’s Fees and Costs (doc. no. 179) at
30. In support of his position, Shultz cites several
out-of-circuit cases that have applied national market
rates in the ERISA context. See, e.g., Jeffboat, LLC
v. Dir., Office of Workers' Comp. Programs, 553 F.3d
487, 490 (7th Cir. 2009); Amos v. PPG Indus., Inc., No.
2:05-CV-70, 2015 WL 4881459, at *9 (S.D. Ohio Aug. 13,
2015) (Watson, J.).
This court has been unable to uncover any instance
of a court in the Middle District of Alabama--or
elsewhere in the Eleventh Circuit--applying national
market rates for attorney’s fees in ERISA litigation.
As pointed out by Aetna Life and the Welfare Plan--and
conceded by Sinclair--a court in the Northern District
of Alabama rejected Sinclair’s request to apply
national market rates in a similar case. See Campbell,
283 F. Supp. 3d at 1144-46. In determining that a
national market rate for ERISA litigation in Alabama
was not warranted just last year, the Campbell court
reasoned that (1) Sinclair’s declaration about the lack
of ERISA lawyers in Alabama was speculative and
conclusory; (2) there was no evidence that the
plaintiff had difficulty finding an attorney; and (3)
there was no evidence that ERISA plaintiffs had
difficulty finding counsel in that specific
jurisdiction. Id. at 1147-48.
Attempting to cure these deficiencies and receive a
higher rate of pay, Sinclair now offers compelling
evidence that just ten attorneys in Alabama are
responsible for nearly 60 % of the state’s ERISA cases.
Pl.’s Reply Regarding Pet. for Atty’s Fees and Costs
(doc. no. 183) at 20. Therefore, his argument goes, it
must be difficult for wronged individuals to find
attorneys to represent them in ERISA litigation, and
paying a national market rate to ERISA attorneys is the
only way to right this wrong.
But “[c]ourts are not authorized to be generous
with the money of others.” Am. Civil Liberties Union
of Ga. v. Barnes, 168 F.3d 423, 428 (11th Cir. 1999).
Sinclair’s office is in Birmingham, Alabama, and this
action was filed in Montgomery. Sinclair appears to be
a capable attorney and may command fees as high as
$ 625 elsewhere, see Reyes v. Bakery & Confectionery
Union & Indus. Int'l Pension Fund, 281 F. Supp. 3d 833,
852 (N.D. Cal. 2017) (Tigar, J.), but the court does
not agree that fees paid in his faraway litigation
dictate the fee that Sinclair deserves here.
This court is mindful, however, of the statistics
cited by Sinclair and cognizant of the difficulty of
ERISA litigation. For that reason, the court will
consider the relevant market to be the state of Alabama
and apply an hourly rate of $ 350 per hour--the same
rate he was paid in Birmingham--even though this case
was filed in Montgomery, an area with lower costs and
expenses. In making this determination, the court has
considered the affidavits filed by Sinclair as well as
the affidavits filed by Aetna Life and the Welfare
Plan, and concluded that $ 350 (as opposed to $ 475)
per hour is the appropriate rate. As the parties have
agreed, the court also finds appropriate rates of $ 250
per hour for Fernon and $ 125 per hour for Fowler.
2. Reasonable Hours
Having determined an appropriate hourly rate,
“[t]he next step in the computation of the lodestar is
the ascertainment of reasonable hours.” Norman, 836
F.2d at 1301. The court should exclude “excessive,
redundant or otherwise unnecessary hours.” Id.
(internal citation and quotation marks omitted). The
party challenging the hours must be “reasonably
precise” in its “objections and proof” with respect to
the challenged hours. Id. There are ten portions of
Shultz’s claimed hours that Aetna Life and the Welfare
Plan contest, though they rarely cite specific entries
of the hourly records. It is often unclear what,
precisely, they challenge, and, in many cases, there is
no way for the court to determine which hours they say
warrant reduction. And, even where the court can
discern the entries to which they object, at least one
of their objections is in error.4 Aetna Life and the
4. The court assumes that these errors were
accidental and not violations of defense counsel’s duty
of candor to the court.
Welfare Plan contend that Shultz’s motions to compel
discovery were denied by the magistrate judge, but omit
the fact that one of these denials was later overruled
by this court on review of the magistrate judge’s
decision. See Order (doc. no. 144).
Along the same lines, Aetna Life and the Welfare
Plan object to time spent by Shultz’s attorneys on
summary-judgment briefing because Shultz did not
prevail on summary judgment. However, Shultz was
successful in achieving remand, and the court did not
reach several of Shultz’s arguments because it ordered
remand. That the court did not need to reach each of
Shultz’s arguments does not indicate that Shultz’s
arguments were meritless or that he should have known
at the outset that they would ultimately become
unnecessary.
Given that the fee application is voluminous; that
Aetna Life and the Welfare Plan’s objections are
imprecise; and that determining the appropriateness of
some of the billed hours would require the relitigation
of the parties’ discovery disputes, this court will not
undergo “an hour-by-hour review [that] is both
impractical and a waste of judicial resources.”
Loranger v. Stierheim, 10 F.3d 776, 783 (11th Cir.
1994). Instead, the court will employ an
across-the-board percentage cut in which “the court
aims to simulate the effect of a line-by-line analysis
while avoiding the waste of judicial resources that
such an impractical approach would entail.” Laube v.
Allen, 506 F. Supp. 2d 969, 981 (M.D. Ala. 2007)
(Thompson, J.).
Aetna Life and the Welfare Plan proposed an
across-the-board cut of two thirds of Shultz’s
attorneys’ hours because of his “extremely limited
success,” a claim they made before Shultz was awarded
long-term-disability benefits on remand. Def.’s Resp.
in Opp. To Pl.’s Pet. (doc. no. 182) at 35. Meanwhile,
Shultz proposes a 10 % reduction in hours as a
“compromise” position. Pl.’s Reply Regarding Pet. for
Atty’s Fees and Costs (doc. no. 183) at 29.
The court finds that a 10 % reduction is reasonable
and appropriate. Although Shultz prevailed on the
merits and was awarded his long-term-disability
benefits, some claims were dismissed, and the court
“must deduct time spent on discrete and unsuccessful
claims.” Norman, 836 F.2d at 1302. The court will
deduct no more than 10 % of the hours expended because
Aetna Life and the Welfare Plan failed to make
“reasonably precise” objections to the hours expended,
id. at 1301, and the court find reasonable the
remaining hours expended by Shultz’s counsel.
Shultz requests the following hours: 148.5 hours
for Sinclair; 400.4 hours for Fernon; and 45.5 hours
for Fowler. Decl. of Thomas Sinclair (doc. no. 177-6).
After a 10 % reduction, those hours are: 133.7 hours
for Sinclair; 360.4 hours for Fernon; and 41 hours for
Fowler.
3. Other Matters
Finally, Aetna Life and the Welfare Plan argue that
Shultz is not entitled to costs and expenses under Rule
54 of the Federal Rules of Civil Procedure because he
is not a prevailing party. For the reasons already
given above, this argument is meritless.
Aetna Life and the Welfare Plan also argue that,
under ERISA’s fee-shifting provision, certain costs
(including legal research, postage, and travel) can be
recovered only “if it is the prevailing practice in the
legal community to bill fee-paying clients separately
for those expenses,” Evans v. Books-A-Million, 762 F.3d
1288, 1299 (11th Cir. 2014), and Shultz has not carried
his burden to demonstrate that it is the prevailing
practice. In response, Shultz states that “the Court
is the best position to determine what the prevailing
practice is,” Pl.’s Reply Regarding Pet. for Atty’s
Fees and Costs (doc. no. 183) at 45, and that similar
expenses were approved without objection in Campbell v.
United of Omaha Life Ins. Co., 283 F. Supp. 3d at 1152.
Because the court is not convinced that the single,
uncontested award of costs in Campbell is sufficient to
establish the prevailing practice in the legal
community, Shultz has failed to carry his burden.
Therefore, the court will exclude the following costs
claimed by Shultz: $ 340.24 for shipping; $ 651.40 for
electronic research; and $ 95.23 for travel.
This court has carefully considered additional
factors listed and discussed in Johnson v. Georgia
Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974),
but they do not warrant a different result.
***
For the above reasons, it is ORDERED that:
(1) Plaintiff Richard P. Shultz’s petition for
attorney’s fees and costs (doc. no. 177) is granted,
though not for the full amount requested.
(2) Attorney’s fees are awarded to plaintiff Shultz
from defendants Aetna Life Insurance Company and L-3
Communications Welfare Plan to the following extent:
(a) For Thomas Sinclair at the rate of $ 350
per hour for 133.7 allowable hours, totaling
$ 46,795.
(b) For Lee P. Fernon at the rate of $ 250 per
hour for 360.4 allowable hours, totaling $ 90,100.
(c) For Claudette Fowler at the rate of $ 125
per hour for 41 allowable hours, totaling $ 5,125.
(3) Expenses and costs are awarded to plaintiff
Shultz from defendants Aetna Life Insurance Company and
L-3 Communications Welfare Plan in the amount of
$ 1,744.72.
This case remains closed.
The clerk of the court is DIRECTED to enter this
document on the civil docket as a final judgment
pursuant to Rule 58 of the Federal Rules of Civil
Procedure.
DONE, this the 13th day of August, 2019.
/s/ Myron H. Thompson
UNITED STATES DISTRICT JUDGE