Micha v. Sun Life Assur. of Can. Inc., 874 F.3d 1052
Oct 31, 2017OUTCOME: REVERSED and the matter is REMANDED to the district court for the calculation of a reasonable award of fees and costs
HOLDINGS: [1]-In denying an employee welfare plan's request that an insurer pay appellate attorney's fees under ERISA, 29 U.S.C.S. § 1132(g)(1), the district court erred in refusing to consider the ful ... l course of the litigation, including the insurer's pre-appeal conduct, in applying the Hummell factors; [2]-The first Hummell factor, degree of culpability or bad faith, weighed strongly in favor of awarding fees because the plan was forced into the litigation only after the insurer wrongfully denied benefits; [3]-The remaining factors also weighed in favor of a fee award. The insurer's ability to pay weighed strongly in favor given the plan's identity of interest with the beneficiary, an award of fees would have a significant deterrent effect as to the bringing of marginal appeals, the insurer pursued an appeal with limited practical significance, and the plan prevailed on appeal.