Houston Disability Attorneys

Just another WordPress site

Call Us Today

713.993.7311
  • Home
  • About Us
  • Disability Denial Services
    • Social Security Disability Denials
      • Galveston Social Security Disability Attorney
    • Long Term Disability Denials
    • Veterans Disabilty Denials
  • Social Security Disability FAQs
    • What Is The Social Security Disability Appeals Process?
    • Do I Need An Attorney For My Disability Claim?
    • What Information Will My Disability Attorney Need?
    • What Does Being Disabled Mean?
    • What Are My Options For Disability Benefits?
    • My Social Security Claim Was Denied. What Do I Do Next?
    • Glossary of SSDI Terms
  • Blog
  • Resources
  • Contact Us

Does the Court Award Attorney Fees in ERISA LTD Claims?

May 31, 2021 | By Natalie | ERISA, Long Term Disability

Does the Court Award Attorney Fees in ERISA LTD ClaimsMost employee group long-term disability insurance plans are governed under the Employee Retirement Income Security Act of 1974, or ERISA, a set of federal laws that protect the rights of policyholders. Among other things, ERISA gives policyholders the right to appeal an insurance company’s decision to deny a claim for LTD benefits.

The law offices of Houston disability attorney M. Stanley Whitehead, have helped clients all over the U.S. who have had their ERISA LTD claims unfairly denied or delayed by an insurance company. One question we get a lot is about attorney fees. In particular, if they proceed with their appeal, are they responsible for paying attorney fees, or will the court award them attorney fees?

ERISA Allows the Court to Award Attorney’s Fees in Certain Circumstances

ERISA does not automatically provide for the award of attorney fees or any legal fees. However, there are certain conditions under which you may petition the court to have the insurance company pay for your legal costs.

ERISA §502(g)(1), 29 U.S.C. §1132(g)(1) states that “the court in its discretion may allow a reasonable attorney’s fee and costs of action to either party.” The U.S. Supreme Court upheld this in the 2010 case of Hardt v. Reliance Standard Life Ins. Co., ruling that a court does indeed have the discretion to award attorney’s fee under ERISA as long as the party seeking fees has achieved “some degree of success on the merits” of their claim.

The Five-Factor Test

Under ERISA, the decision to award attorney fees and court costs to the claimant is left to the judge’s discretion.

The judge must agree that there is “some degree of success on the merits” of your case. How do they make this decision?  The courts generally apply what is called a five-factor test in determining whether or not to award attorney’s fees. The five factors a district court is required to look at when considering awarding attorney fees are:

  • To what degree did the insurance company act in bad faith? For instance, did the insurance company blatantly ignore the rules or did they just bend them a bit?
  • Can they afford to pay? This is not usually an issue when the claimant wins. If the claimant is unsuccessful, this rule may help them if the judge decides to award attorney’s fees to the insurance company.
  • Will the award act as a deterrent? The judge will consider if the award will deter the insurance company from engaging in further acts of bad faith.
  • Are you willing to share your award with another plan? This only applies when filing a joint lawsuit.
  • The merits of each party’s position. For instance, was the insurance company really justified in denying your claim?

Under ERISA, the decision to award attorney fees and court costs to the claimant is left to the judge’s discretion. The judge must agree that there is “some degree of success on the merits” of your case. The amount of attorney’s fees an insurance company must pay is also solely decided by the judge. In some instances, this results in the insurance company paying a lot less than what might normally be considered a “reasonable” amount for attorney fees.

Don’t Let the Worry of Big Legal Bills Prevent You From Exercising Your Rights in ERISA LTD Claims

Houston long term disability attorney M. Stanley Whitehead understands all too well the financial burdens a disability can impose. Don’t let the fear of expensive attorney fees prevent you from exercising your rights to appeal an insurance company’s decision to deny your claim for LTD benefits. We are able to handle many LTD benefits appeals on a contingency basis. This means there are no upfront fees for our representation;  we are paid a percentage of the recovery only when and if we reach a successful outcome in a settlement or a judgment in court.

How Can We Help?

Get The Benefits You Deserve
  • By submitting this form I agree to the following disclaimer.
  • This field is for validation purposes and should be left unchanged.

Read Our Client's Testimonials
Attorney M. Stanley Whitehead - 5 out of 5 based on 36 user reviews.  
"I would highly recommend this firm to everyone, Wonderful firm, they took my case , when I was told by a few firms in Ohio that I did not have a case, Marc Whitehead and Associates settled the case in a timely fashion"  Delecia via
"I want to thank the office of Marc Whitehead and especially Jaime Almaguer who was my caseworker. I had begun the disability process myself until I heard about this lawyers' office in Texas. Seemed strange working with folks across the country that I would never meet. Nevertheless, they were able to get my disability first time around. I felt comfortable discussing my issues privately with them and being able to let Jaime do the work. He was responsive, caring and very professional. Thank you all so much, this has changed my life."  Lynne via

Click Here To Read More Attorney M. Stanley Whitehead Reviews

About Us

Disability attorney Marc Stanley Whitehead, Esq. is the founding partner of Marc Whitehead & Associates, which he established in 1992 in Houston, Texas.

Navigation

  • Home
  • Services
  • About Us
  • FAQ’s
  • Resources
  • Contact Us

Contact Info

Law Offices Of M. Stanley Whitehead
4412 Stanford St #1
Houston, Tx 77006
Phone: (713) 993-7311 URL of Map
Copyright © 2017 Law Offices Of M. Stanley Whitehead
Marc Whitehead is the attorney responsible for the content of this website. Principal office is in Houston, Texas. Contacting us through the website does not create an attorney client relationship. Your personal health information is subject to electronic disclosure to those individuals and entities assisting the law firm with your case.
Attorney Marketing and Law Firm Website Design by Thunderhead Marketing.

Copyright © 2023 · Whitehead Genesis Theme on Genesis Framework · WordPress · Log in

Houston Disability Attorneys
  • Home
  • About Us
  • Disability Denial Services
    • Social Security Disability Denials
      • Galveston Social Security Disability Attorney
    • Long Term Disability Denials
    • Veterans Disabilty Denials
  • Social Security Disability FAQs
    • What Is The Social Security Disability Appeals Process?
    • Do I Need An Attorney For My Disability Claim?
    • What Information Will My Disability Attorney Need?
    • What Does Being Disabled Mean?
    • What Are My Options For Disability Benefits?
    • My Social Security Claim Was Denied. What Do I Do Next?
    • Glossary of SSDI Terms
  • Blog
  • Resources
  • Contact Us