Radford Trust v. First Unum Life Ins. Co.

• Decision Date: 15 November 2005
• Docket Number: No. CIV.A. 02-12477WGY.,CIV.A. 02-12477WGY.
• Citation: 399 F.Supp.2d 3
• Parties: RADFORD TRUST, Plaintiff, v. FIRST UNUM LIFE INSURANCE COMPANY OF AMERICA Defendant.
• Court: U.S. District Court — District of Massachusetts

399 F.Supp.2d 3

RADFORD TRUST, Plaintiff, v. FIRST UNUM LIFE INSURANCE COMPANY OF AMERICA Defendant.

No. CIV.A. 02-12477WGY.

United States District Court, D. Massachusetts.

November 15, 2005.

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Mark E. Porada, Pierce Atwood, Portland, ME, for First Unum Life Insurance Company of America, Defendant.

Warren H. Pyle, Pyle, Rome & Lichten, & Ehrenberg, P.C., Boston, for John Doe, Radford Trust, Plaintiffs.

Geraldine G. Sanchez, Pierce Atwood, Portland, ME, for First Unum Life Insurance Company of America, Defendant.

MEMORANDUM & ORDER

YOUNG, Chief Judge.

I. INTRODUCTION

On behalf of its beneficiary, John Doe ("Doe"), the plaintiff Radford Trust ("Radford") brought suit against the defendant First Unum Life Insurance Company Of America ("First Unum"), alleging damages resulting from First Unum's failure to pay long term benefits to Doe pursuant to the terms of an insurance policy First Unum issued to Doe. Compl. [Doc. No. 1] at 1. Radford sought relief under the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. § 1132, et seq. (Count I), and under Massachusetts law, including Mass. Gen. Laws ch. 93A and the doctrine of promissory estoppel (Count II). Id. ¶¶ 11-12.

II. BACKGROUND

A. Procedural History

On August 25, 2003, First Unum filed a Motion for Summary Judgment and Incorporated Memorandum of Law ("Def.'s Mot. for Summ. J.") [Doc. No. 13]. On September 19, 2003, Radford filed an opposition and a motion for Partial Summary Judgment and supporting memorandum ("Pl.'s Summ. J. Opp'n") [Doc. Nos. 16-17], noting that it had "decided to withdraw its claim under Count II" and was "prepared to execute an appropriate stipulation of dismissal of that claim." Id. at 1. On March 31, 2004, this Court granted Radford's motion for partial summary judgment on Count I, noting that "Radford has agreed to withdraw the claim in Count II." Order of 3/31/04 [Doc. No. 38] at 1. The Court explained its March 31, 2004 Order in a comprehensive and detailed Memorandum and Order issued June 14, 2004. Radford Trust v. First Unum Life Ins. Co. of Am., 321 F.Supp.2d 226 (D.Mass.2004).¹

While the Court has attempted properly to manage and adjudicate this case, motion practice has continued unabated, causing the court some confusion and mis-steps. It is the purpose of this memorandum and order to deal with all pending motions. Here is the current tally:

1. April 14, 2004—Motion for Award of Attorneys Fees for Counsel Warren H. Pyle and Cathy Highet by Radford Trust ("Pl.'s Att'ys Fees Mot. I") [Doc. No. 43];

2. April 26, 2004—Motion for Attorney Fees for John Doe by Radford Trust ("PL's Att'ys Fees Mot. II") [Doc. No. 44];

3. April 28, 2004—Response to Defendant's Submission regarding the Award of Benefits and Motion For First Unum to First Determine the Applicability of the Social Security Offset Provision by Radford Trust ("Pl.'s Offset Mot. & Resp. to Def.'s Submission") [Doc. No. 46];

4. May 12, 2004—Motion to Strike Response to Defendant's Opposition to Plaintiff's Motion for an Award of Attorney's Fees by First Unum Life Insurance Company of America (Def.'s Mot. to Strike) [Doc No. 52];

5. May 19, 2004—Retroactive request for leave to file "Plaintiff's Response to Defendant's Opposition To Plaintiff's Motion For An Award Of Attorney's Fees," ("Pl.'s Att'ys Fees Resp.") [Doc. No. 49], made in "Plaintiff's Opposition to Defendant's Motion to Strike Plaintiff's Response to Defendant's Opposition To Plaintiff's Motion For An Award Of Attorney's Fees," ("Pl.'s Mot. to Strike Opp'n") [Doc. No. 53];

6. May 26, 2004—Motion to Intervene to File Reply to Unum's Opposition to Motion for Attorney Fees for work by John Doe, and, Motion for Leave to request Doe's Additional Attorney Fees for Helping to Prepare this Filing by Bernard Doe ("Pl.'s Mot. to Intervene & Req. Add'l Att'ys Fees") [Doc. No. 54].

This Court's Order of June 14, 2004 amended its March 31, 2004 Judgement and Order by: (1) holding that prejudgment interest should run from June 13, 2000; and (2) stating that the Court would issue an Amended Judgment clarifying the appropriate calculation of pre-judgment interest. Radford Trust, 321 F.Supp.2d at 253, 260. On July 14, 2004, First Unum filed a Notice of Appeal as to the March 31, 2004 order and judgement. [Doc. No. 58].

7. July 16, 2004—Motion to Amend Memorandum & Order, of June 14, 2004 and Motion to Supplement the Administrative Record by Radford Trust ("PL's Mot. to Amend 7/14/04 Order & Supple. Admin. R.") [Doc. No. 59];

8. September 3, 2004—Motion to Award Damages Under State Law by Radford Trust ("Pl.'s State Damages Mot.") [Doc. No. 70].

In light of the appeal, all unresolved motions previously filed with the Court were denied as moot on January 19, 2005. This was error, however; indeed it was inexcusable since, on December 21, 2004 this Court received a Mandate of the First Circuit dismissing the appeal after granting of First Unum's motion for voluntary dismissal. ("1st Cir. Mandate") [Doc. No. 73]. This Court's mis-step promptly brought the filing of two more motions, seeking to induce action at this level:

9. January 26, 2005—Motion for Reconsideration of Order Denying Motions as Moot by Radford Trust ("Pl.'s Mot. for Recons.") [Doc. No. 74];

10. February 10, 2005—Motion for Declaration that First Unum has Repudiated the Court's Judgment and its Administrative Responsibilities Under the Insurance Policy so as to Entitle Plaintiff to Sue Immediately for Benefits Beyond the Twenty-Four Month Period by Radford Trust ("Pl.'s Mot. for Decl.") [Doc. No. 75].

This Memorandum will address each pending motion and then clarify the calculation of prejudgment interest and damages to be made by First Unum.

III. DISCUSSION

A. The Motion for Attorney Fees for Counsel Warren H. Pyle and Cathy Highet by Radford Trust is ALLOWED

1. Attorney's fees are warranted

ERISA provides that in "any action ... by a participant, beneficiary, or fiduciary, the court in its discretion may allow a reasonable attorney's fee and costs of action to either party." 29 U.S.C. § 1132(g)(1); Cottrill v. Sparrow, Johnson & Ursillo, Inc., 100 F.3d 220, 225 (1st Cir.1996)("fee awards under ERISA are wholly discretionary"). The First Circuit has developed a five factor standard for determining whether an assessment of attorney's fees is appropriate in an ERISA case. Cottrill, 100 F.3d at 225. The five factors to consider are: (1) the degree of bad faith or culpability of the losing party; (2) the ability of such party personally to satisfy an award of fees; (3) whether such award would deter other persons acting under similar circumstances; (4) the amount of benefit to the action as conferred on the members of the pension plan; and (5) the relative merits of the parties' positions. Id. An appellate court reviews the grant or denial of prejudgment interest in ERISA cases solely for abuse of discretion. Id. at 223.

While First Unum contends that "the record contains no indication that the defendants exhibited bad faith," Def.'s Opp'n to Pl.'s Mot. for an Award of Att'ys Fees ("Def.'s Att'ys Fees Opp'n") [Doc. No. 47] at 2 (internal quotations and citation omitted), this Court found that the record indicated otherwise.

First Unum's conduct in denying Doe's claim was entirely inconsistent with the company's public responsibilities and with its obligations under the Policy. This is not the first time that First Unum has sought to avoid its contractual responsibilities, and an examination of cases involving First Unum and Unum Life Insurance Company of America, which like First Unum is an insuring subsidiary of Unum Provident Corporation, reveals a disturbing pattern of erroneous and arbitrary benefits denials, bad faith contract misinterpretations, and other unscrupulous tactics. These cases suggest that segments that have run in recent years on "60 Minutes" and "Dateline," alleging that Unum Provident "regularly declines disability claims as a way of boosting profits," may have been accurate.

Radford Trust, 321 F.Supp.2d at 247-49 (footnotes omitted). Accordingly, the Court stated "[a]s this Court has described, First Unum acted in bad faith in denying benefits to Doe, and while First Unum's position was entirely without merit, Radford's was essentially correct." Id. at 259.

This Court went on to conclude that First Unum could "well afford to pay a fee award, [ ] the awarding of fees against insurers acting in bad faith would deter similar conduct by other insurers in the future," and that "participants and beneficiaries in other plans, particularly those administered by First Unum, will tend to benefit in a similar manner from this lawsuit." Id.

Having already held that attorney's fees were appropriate, this Court ordered the parties to submit papers regarding the appropriate amount of attorney's fees. Id. First Unum's contention that Radford "has offered no analysis or explanation for why it should be entitled to an award of attorney's fees" is therefore without merit, see Def.'s Att'ys Fees Opp'n at 1; this Court only requested Radford submit papers regarding the appropriate amount. First Unum has made no arguments not already considered by this Court. Thus, in keeping with this Court's earlier determination, the Court now reaffirms that granting attorney's fees to Radford in the case at hand is appropriate.

2. Determination of Attorney's Fees

Radford has requested attorney's fees in the amount of $30,747.10. Pl.'s Att'ys Fees Resp., Ex. 3 at 8. First Unum has argued that the requested fee amount is excessive and the Court should award no more than $14,550. Def.'s Att'y Fees Opp'n at 12.

ERISA provides for damages which include attorney's fees and costs. 29 U.S.C. § 1132(g)(2); Massachusetts Carpenters Cent. Collection Agency v. Belmont Concrete Corp., No. 95-10491, 1997 U.S. Dist. LEXIS 22233, at *35 (D.Mass. Sept. 30, 1997) (Woodlock,...