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Harlow v. Metro. Life Ins. Co.

Citation: 379 F. Supp. 3d 1046Docket: Case No. EDCV 17-2091 JGB (SPx)

Court: District Court, C.D. California; May 23, 2019; Federal District Court

Narrative Opinion Summary

The case involves a plaintiff seeking to recover long-term disability benefits under the Employment Retirement Income Security Act (ERISA) after MetLife had denied these benefits. The court initially reversed MetLife's termination of benefits, ruling in favor of the plaintiff. Following this decision, the plaintiff moved for an award of attorney's fees and costs, arguing success on the merits of the case. MetLife opposed this motion, challenging the reasonableness of the hours and the hourly rates claimed. The court applied the lodestar method, adjusting the claimed hours and confirming the hourly rates based on market standards and prior court approvals. The court found that MetLife's objections were unsupported and confirmed the plaintiff's entitlement to attorney's fees, totaling $182,650, after a minor reduction. Additionally, the court granted the full request for litigation costs, recognizing them as part of reasonable attorney's fees under ERISA. The decision emphasized the deterrent effect of such awards on similar conduct by ERISA plans and affirmed the reasonableness of the plaintiff's counsel's billing practices. The court's ruling illustrates the application of ERISA's fee-shifting provisions and the consideration of prevailing market rates in attorney's fee awards.

Legal Issues Addressed

Attorney's Fees under ERISA

Application: The court granted a partial award of attorney's fees to the plaintiff after reversing MetLife's termination of benefits, recognizing the plaintiff's success on the merits of the case.

Reasoning: Plaintiff is entitled to reasonable attorneys' fees, as the Court confirms her success on the merits of the case, specifically reversing MetLife's determination regarding her total disability under the LTD plan for the relevant 24-month period.

ERISA's Five-Factor Test for Attorney's Fees

Application: The court found that all factors supported granting attorney's fees, noting that MetLife could pay, ERISA plans should deter ignoring medical evidence, and plaintiff's position was adopted on the merits.

Reasoning: However, even if such analysis were required, the Court finds that: (1) the first factor is neutral regarding bad faith; (2) MetLife acknowledges it can satisfy an award of fees; (3) ERISA plans should be discouraged from ignoring conflicting medical evidence; (4) while Plaintiff did not represent others, her case may influence future obligations of insurers; and (5) the Court adopted Plaintiff's position on the merits.

Lodestar Method for Attorney's Fees

Application: The court applied the lodestar method to determine the attorney's fees, adjusting the hours for excessiveness and confirming the rates based on market standards.

Reasoning: Ultimately, the Court reduces the Plaintiff's initial fee request of $184,750 by $2,100, resulting in a lodestar amount of $182,650.

Reasonableness of Hourly Rates

Application: The court confirmed the reasonableness of the hourly rates for attorneys based on prevailing market rates and prior court approval, despite MetLife's objections.

Reasoning: The Court concludes that the requested hourly rates for Horrow, Petti, Calvert, and Podgurski are reasonable and will not be reduced.

Recovery of Litigation Costs under ERISA

Application: The court granted the plaintiff's full request for costs, recognizing litigation expenses as part of reasonable attorney's fees customary in the community.

Reasoning: Consequently, the Court approves Plaintiff's full request for costs.