Graziano v. First Unum Life Insurance Company

Background

Michael J. Graziano brought an action under the Employee Retirement Income Security Act of 1974, a federal law governing employee benefit plans, against First Unum Life Insurance Company. He alleged that First Unum improperly terminated his long-term disability benefits and life-insurance premium-waiver benefits.

After a bench trial based on an agreed administrative record, the court entered judgment for Graziano for benefits accruing from January 3, 2020, through November 10, 2020. The court remanded the portion of the claim beginning November 11, 2020, to First Unum for a benefits determination. First Unum later approved Graziano’s claim for ongoing long-term disability benefits from November 11, 2020, through the present. Graziano initially sought $21,704.47 in long-term disability benefits and prejudgment interest for the earlier period, but First Unum paid those amounts and he withdrew those requests.

Entitlement to Fees

Graziano requested $221,039.25 in attorneys’ fees under 29 U.S.C. § 1132(g)(1): $198,635.25 for the benefits litigation and $22,404 for preparing the fee request. He also requested $402 in litigation costs for the complaint’s filing fee.

The court held that Graziano achieved success on the merits because he succeeded on his claim that he was disabled under the relevant plans during the period covered by the administrative record. The court also held that the remand itself constituted success on the merits. It therefore concluded that Graziano was entitled to reasonable attorneys’ fees.

Hourly Rates

Graziano proposed hourly rates of $875 for Scott M. Riemer, $675 for Jennifer Hess, $600 for Matthew Maddox, $480 for Ryan McIntyre, $350 for Hannah Cochrane, $325 for Michele Wagner, and $275 for Samantha Corneille-Renner. First Unum asked the court to reduce the proposed attorney rates by 23% and the paralegal rates to amounts between $50 and $200 per hour.

The court found the proposed rates reasonable after applying a 10% reduction. It relied on evidence concerning the firm’s reputation, the attorneys’ and paralegals’ experience, the firm’s specialized ERISA disability practice, the rates paid by the firm’s clients, and rates approved in other ERISA cases in the district. The modified rates were $788 for Riemer, $608 for Hess, $540 for Maddox, $432 for McIntyre, $315 for Cochrane, $293 for Wagner, and $248 for Corneille-Renner.

Hours and Fee Calculation

Graziano submitted time records identifying the dates, tasks, descriptions, and hours worked. The court found most of the time reasonable and declined to reduce the hours for preparation of the trial brief. It nevertheless identified some administrative work, vague entries, block billing, duplicative work, and insufficient delegation to less experienced team members.

The court applied a 5% reduction to the number of compensable hours to account for those problems. It determined that $187,080.65 was a reasonable attorneys’ fee award.

Costs and Disposition

First Unum did not object to the requested $402 filing-fee cost. The court granted that request.

Judge Loretta A. Preska granted Graziano’s motion for attorneys’ fees and litigation costs as modified. The clerk was directed to enter judgment awarding Graziano $187,080.65 in attorneys’ fees and $402 in costs.