ERISA

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Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Attorneys’ Fees

First Circuit

Hoffman v. Packer, No. 19-CV-10686-RWZ, 2021 WL 2953260 (D. Mass. July 13, 2021) (Judge Zobel). Plaintiffs commenced this action under the ERISA, to recover their benefits under the terms of defendant R.M. Packer Co., Inc.’s retirement plan. Defendants failed to respond to the complaint. The matter is before the court is now on plaintiffs’ unopposed motion for attorneys’ fees in the total amount of $500,658.50 and $960.01 in costs. Defendants’ failure to respond to the complaint or meaningfully engage in this litigation has handicapped the court’s ability to determine whether defendants acted in bad faith or were merely negligent.
Continue Reading Your ERISA Watch – Week of July 21, 2021

Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Attorneys’ Fees

Seventh Circuit

Alberth v. Southern Lakes Plumbing & Heating, Inc., No. 19-CV-62, 2021 WL 2779038 (E.D. Wis. July 2, 2021) (Mag. J. Nancy Joseph). Plaintiff Alberth prevailed in his claim for a cash value payout under an ERISA-governed life insurance benefit plan, and was also awarded statutory penalties. He filed a motion for attorney’s fees, which defendant opposed. The court found that Alberth had achieved “some success on the merits” and thus passed the Supreme Court’s threshold test for an award of fees. The court further ruled that the Seventh Circuit’s five-factor test weighed in favor of awarding fees. In particular, the court highlighted that defendant had acted in bad faith “during the entire course of this litigation.”
Continue Reading Your ERISA Watch – Week of July 07, 2021

Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Attorneys’ Fees

Third Circuit

Cunningham v. Wawa, Inc., No. CV 18-3355, 2021 WL 1626482 (E.D. Pa. Apr. 21, 2021) (Judge Paul S. Diamond). Plaintiffs are former employees of Wawa who participated in the Company’s Employee Stock Ownership Plan (“ESOP”), by which Wawa shares are allocated to individual Plan participants. Before 2014, the ESOP’s written instrument provided that former employees were entitled to retain ownership of their Wawa stock until age 68. In 2014, Wawa amended the ESOP and instructed the Trustee to “liquidate the ESOP Stock held in the ESOP Stock Account of any Participant who terminates employment with the Company and all Affiliated Companies on or after January 1, 2015.” Wawa amended the ESOP again in 2015, directing the Trustee to liquidate shares for participants who had terminated employment or retired before January 1, 2015. Plaintiffs contend that these forced sales violated ERISA, and that Defendants undervalued the Wawa stock (which is not publicly traded) when compensating former ESOP participants for their shares. The parties now seek approval of settlement and plaintiffs’ attorney fees. The court approved both requests, ordering defendants to pay $21,612,500 to the Class (an estimated $500 per share), up to 20% of the award amount and $175,000 for litigation expenses to Class Counsel, and a $25,000 incentive award to each Class Representative. The court also approved the parties’ agreement that defendants pay settlement administration costs, including the costs of the independent fiduciary retained to review the settlement. In all, the court also awarded $4,322,500 in fees, and $153,851.05 in costs.
Continue Reading Your ERISA Watch – Week of May 5, 2021