Chung v. Provident Life and Casualty Insurance Company
- Alvin Hellerstein
- 1:21-cv-09344
- U.S. District Court · Southern District of New York
- 3
In Chung v. Provident Life, Judge Hellerstein granted $374,754.13 in fees, $681.63 in costs, and $114,332.90 in prejudgment interest.
Edward Chung received the awarded attorneys’ fees, litigation costs, and prejudgment interest; Provident Life and Casualty Insurance Company was required to pay those amounts.
What happened
Chung v. Provident Life and Casualty Insurance Company followed a bench trial over whether Provident Life improperly terminated Chung’s disability benefits under the Employee Retirement Income Security Act. The court had found that Chung was totally disabled and awarded him benefits from September 21, 2020, through September 12, 2023.
Chung then requested $374,754.13 in attorneys’ fees, $681.63 in litigation costs, and prejudgment interest at 9%, totaling $114,332.90. The opinion states that the requested fee was below the court’s presumptively reasonable fee and that the requested costs were necessary for the litigation.
Judge Alvin K. Hellerstein granted the requests for attorneys’ fees, costs, and 9% prejudgment interest. The court also directed the Clerk of Court to terminate the fee motion.
The detailed version
- Chung v. Provident Life and Casualty Insurance Company · No. 1:21-cv-09344
- Alvin Hellerstein
- Jan. 4, 2024
Background
Edward Chung sued Provident Life and Casualty Insurance Company, alleging that the company improperly terminated his disability benefits in violation of the Employee Retirement Income Security Act of 1974 (ERISA). After a bench trial consisting of a one-hour argument on a stipulated administrative record, the court found that Chung had been totally disabled under the Supplemental Plan since September 21, 2020. The court therefore entered judgment for Chung and awarded disability benefits through September 12, 2023, the date of judgment.
Attorneys’ Fees
After the trial, Chung moved for attorneys’ fees under ERISA § 502(g)(1), which permits a court to award a reasonable attorney’s fee and litigation costs to either party. Chung requested $374,754.13. The court found that amount reasonable. It compared the request with a presumptively reasonable fee of $408,752.25, calculated by multiplying a reasonable hourly rate by the reasonably expended hours. The court relied on Chung’s descriptions of his hourly-client payments, the attorneys’ billing rates, the demands of the litigation, and the firm’s experience with insurance disputes. The court also noted that the requested amount was more than $30,000 below the presumptive figure, accounting for billing inefficiencies and changes in attorney rates over time.
Costs
Chung requested $681.63 in costs for the filing fee, service of process, and printing materials for trial. The court found those costs limited in scope and necessary to litigating the case, and granted the request.
Prejudgment Interest
Chung requested prejudgment interest at a 9% rate, totaling $114,332.90. The requested interest covered the period from September 21, 2020, when the disability benefits should first have been granted, through September 12, 2023, the judgment date. The court found that 9% was reasonable because it matched the New York statutory interest rate, and granted the request.
Disposition
The court granted Chung’s request for $374,754.13 in attorneys’ fees, granted his request for $681.63 in costs, and granted his request for 9% prejudgment interest totaling $114,332.90. The Clerk of Court was directed to terminate the fee motion.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.