Petsche v. Prudential Insurance Company of America
Docket: 91-03698
Court: District Court of Appeal of Florida; November 12, 1992; Florida; State Appellate Court
In the case of Roy Petsche and Joan Petsche v. The Prudential Insurance Company of America, the Florida District Court of Appeal addressed an appeal and a cross-appeal regarding attorney's fees in an interpleader action involving insurance proceeds governed by the Employee Retirement Income Security Act (ERISA). The court affirmed the denial of the appellants' motion for attorney's fees, concluding that Florida Statutes Section 627.428, which mandates such awards, is preempted by ERISA, specifically 29 U.S.C. § 1132(g), which allows for discretionary fee awards. The court referenced the precedent set in Florida Automobile Dealers Industry Benefit Trust v. Small, noting that other state appellate courts have similarly ruled that state statutes imposing attorney's fees on ERISA-compliant insurers are preempted by federal law. Additionally, the court affirmed the denial of Prudential's motion for attorney's fees in the cross-appeal. The decision reflected a consensus among the judges that there was no abuse of discretion in denying both motions for attorney's fees. The ruling emphasizes the supremacy of federal law under ERISA in relation to conflicting state statutes regarding attorney's fees.