### IN THE UNI TED STAT ES COURT OF APPEALS

FOR THE FIF TH CIRCU IT

N o

. 1 0

- 1 1 1 6 8

S u m m a r y C a l e n d a r

1 L I N C O L N F I N A N C I A L C O M P A N Y

,

P l a i n t i f f

- A p p e l l a n t

v

.

M E T R O P O L I T A N L I F E I N S U R A N C E C O M P A N Y

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D e f e n d a n t

- A p p e l l e e

A p p e a l f

r o m t h e U n i t e d S t a t e s D i s t r i c t C o u r t

f o r t h e N o r t h e r n D i s t r i c t o f T e x a s U S D C N o

. 4 : 0 9

- C V

- 5 7 7

B e f o r e J O L L Y

, G A R Z A

, a n d S T E W A R T

, C i r c u i t J u d g e s

.

P E R C U R I A M : *

P l a i n t i f f

– A p p e l l a n t 1 L i n c o l n F i n a n c i a l ( “ L i n c o l n ” ) a r g u e s t h a t t h e d i s t r i c t

c o u r t e r r e d b y a w a r d i n g a t t o r n e y ’ s f e e s a n d c o s t s t o D e f e n d a n t

- A p p e l l e e

M e t r o p o l i t a n L i f

e I n s u r a n c e C o m p a n y ( “ M e t L i f e ” ) i n t h i s l a w s u i t g o v e r n e d b y

t h e E m p l o y m e n t R e t i r e m e n t I n c o m e S e c u r i t y A c t o f 1 9 7 4 ( “ E R I S A ” )

, 2 9 U

. S

. C

.
§ § 1 0 0 1 e t s e q

. W e h o l d t h a t t h e d i s t r i c t c o u r t d i d n o t e r r a n d w e A F F I R M t h a t

c o u r t ’ s a w a r d o f a t t o r n e y ’ s f e e s a n d c o s t s t o M e t L i f e

. U n i te d S ta te s C o u rt o f A p p ea l s
F i ft h C i rc u i t 

### F I L E D

June 15 , 20 11

Lyle W . Cayce

Clerk

Pursua nt to 5 T H C I R

. R. 47.5

, the cour t has d ete rm ined t hat this op inion s hould not *

be publ ish ed and is not pr ece dent excep t unde r the lim ite d cir cum st ance s se t for th in 5 T H C I R

. R. 47.5 .4. Case: 10-11168 Document: 00511509505 Page: 1 Date Filed: 06/15/2011N o

. 1 0

- 1 1 1 6 8

T h i s d i s p u t e s t e m s f r o m L i n c o l n ’ s a t t e m p t t o r e c o v e r a p o r t i o n o f l i f e

i n s u r a n c e b e n e f

i t s u n d e r a n e m p l o y e e w e l f a r e b e n e f i t p l a n g o v e r n e d b y E R I S A

.

L i n c o l n f

i l e d i t s c l a i m a f

t e r a n i n d i v i d u a l h a d a s s i g n e d h e r i n t e r e s t i n b e n e f i t s

f r o m a l i f e i n s u r a n c e p o l i c y t o a f u n e r a l h o m e , w h i c h i n t u r n , a s s i g n e d t h e

i n t e r e s t t o L i n c o l n

. M e t L i f e d e n i e d t h e c l a i m , L i n c o l n s u e d M e t L i f e i n s t a t e

c o u r t

, a n d M e t L i f e r e m o v e d t h e c a s e t o f e d e r a l c o u r t

. A f t e r L i n c o l n

u n s u c c e s s f

u l l y m o v e d t o r e m a n d t h e c a s e , M e t L i f e m o v e d f o r s u m m a r y

j u d g m e n t

. L i n c o l n f a i l e d t o o p p o s e t h e m o t i o n a n d t h e d i s t r i c t c o u r t g r a n t e d

s u m m a r y j u d g m e n t i n f a v o r o f M e t L i f e

. W h e n M e t L i f e m o v e d f o r r e a s o n a b l e

a t t o r n e y ’ s f e e s , L i n c o l n o p p o s e d t h e m o t i o n

. T h e d i s t r i c t c o u r t d i s a g r e e d w i t h

L i n c o l n a n d a w a r d e d M e t L i f e $ 1 7

, 8 4 2

. 2 1 i n a t t o r n e y ’ s f e e s a n d c o s t s

.

D i s s a t i s f

i e d

, L i n c o l n a p p e a l e d

.

I n a c a s e g o v e r n e d b y E R I S A

, w e r e v i e w t h e d i s t r i c t c o u r t ’ s a w a r d o f

a t t o r n e y ’ s f e e s a n d c o s t s f o r a n a b u s e o f d i s c r e t i o n

. W a d e v

. H e w l e t t

- P a c k a r d

D e v e l o p

. C o

. L P S h o r t T

e r m D i s a b i l i t y P l a n , 4 9 3 F

. 3 d 5 3 3

, 5 4 1 ( 5 t h C i r

. 2 0 0 7 )

.

E R I S A a u t h o r i z e s a c o u r t t o a w a r d c o s t s “ i n i t s d i s c r e t i o n

. ” 2 9 U

. S

. C

. § 1 1 3 2 ( g )

.

I n H a r d t v

. R e l i a n c e S t a n d a r d L i f e I n s

. C o

. , t h e S u p r e m e C o u r t h e l d t h a t t h i s

a w a r d i s n o t l i m i t e d t o a “ p r e v a i l i n g p a r t y

. ” 1 3 0 S

. C t

. 2 1 4 9

, 2 1 5 7

– 5 8 ( 2 0 1 0 )

. 1

R a t h e r , u n d e r § 1 1 3 2 ( g ) ( 1 )

, a d i s t r i c t c o u r t m a y a w a r d a t t o r n e y ’ s f e e s a n d c o s t s

i f a p a r t y h a s a c h i e v e d “ s o m e d e g r e e o f s u c c e s s o n t h e m e r i t s

. ” I d

. a t 2 1 5 8

. O n c e

a d i s t r i c t c o u r t d e t e r m i n e s t h a t a p a r t y i s e l i g i b l e f o r a f e e a w a r d u n d e r §

1 1 3 2 ( g ) ( 1 )

, a d i s t r i c t c o u r t m a y c o n s i d e r w h e t h e r f e e s a r e a p p r o p r i a t e u n d e r t h e

f a c t o r s o u t l i n e d i n I

r o n W o r k e r s L o c a l N o

. 2 7 2 v

. B o w e n , 6 2 4 F

. 2 d 1 2 5 5

, 1 2 6 6

( 5 t h C i r

. 1 9 8 0 )

. H a r d t

, 1 3 0 S

. C t

. a t 2 1 5 8 n

. 8

.

Prior to Ha rdt

, we per mi tte d an aw ard of fee s on a “p revail ing par ty bas is” and we did 1

not requ ire a dis tri ct c o u r t to cons ide r the five fac tor s. Wad e , 493 F.2d at 542–43. Ha rdt

abro gates ou r “p revail ing p art y” requ irem ent.

2 Case: 10-11168 Document: 00511509505 Page: 2 Date Filed: 06/15/2011N o

. 1 0

- 1 1 1 6 8

L i n c o l n a r g u e s t h a t t h e d i s t r i c t c o u r t e r r e d b e c a u s e E R I S A o n l y p e r m i t s

f e e a w a r d s w h e n a l a w s u i t i s b r o u g h t b y a “ p a r t i c i p a n t

, b e n e f i c i a r y , o r f

i d u c i a r y ”

o f a b e n e f

i t s p l a n g o v e r n e d b y E R I S A

. L i n c o l n a s s e r t s t h a t i t i s n o t a 2

p a r t i c i p a n t

, b e n e f

i c i a r y , o r f

i d u c i a r y

. T h i s a r g u m e n t i s f l a w e d

. I n d e e d

, §

1 1 3 2 ( a ) o n l y p e r m i t s f o r a f e e a w a r d i n a l a w s u i t f i l e d b y a “ p a r t i c i p a n t

,

b e n e f i c i a r y , o r f

i d u c i a r y

. ” B u t L i n c o l n ’ s c l a i m e x i s t s b e c a u s e t h e o r i g i n a l

p a r t i c i p a n t a n d b e n e f i c i a r y a s s i g n e d h e r i n t e r e s t t o a b u s i n e s s , w h i c h i n t u r n ,

a s s i g n e d t h a t i n t e r e s t t o L i n c o l n

. A s a n a s s i g n e e , L i n c o l n s t a n d s i n t h e s h o e s

o f t h e o r i g i n a l b e n e f

i c i a r y a n d p l a n p a r t i c i p a n t

. F D I C v

. B l e d s o e , 9 8 9 F

. 2 d 8 0 5

,

8 1 0 ( 5 t h C i r

. 1 9 9 3 )

. T h e r e f o r e , § 1 1 3 2 p e r m i t s f o r a n a w a r d o f f e e s

.

L i n c o l n a l s o a r g u e s t h a t t h e d i s t r i c t c o u r t e r r o n e o u s l y c o n c l u d e d t h a t

M e t L i f e h a d s a t i s f

i e d t h e f i v e f a c t o r s o u t l i n e d i n B o w e n

. B u t

, t h i s a r g u m e n t i s 3

i r r e l e v a n t t o t h e q u e s t i o n o f w h e t h e r M e t L i f e w a s e n t i t l e d t o f e e s a s a t h r e s h o l d

m a t t e r

. A s t h e C o u r t s t a t e d i n H a r d t

, t h e r e q u i r e m e n t f o r a n a w a r d o f f e e s i s

t h a t a p a r t y a c h i e v e s o m e d e g r e e o f s u c c e s s o n t h e m e r i t s

. 1 3 0 S

. C t

. a t 2 1 5 8

. A

d i s t r i c t c o u r t m a y c o n s i d e r t h e f i v e f a c t o r s , b u t H a r d t d o e s n o t m a n d a t e

c o n s i d e r a t i o n

. 1 3 0 S

. C t

. a t 2 1 5 8 & n

. 8 ( “ B e c a u s e t h e s e f i v e f a c t o r s b e a r n o

o b v i o u s r e l a t i o n t o § 1 1 3 2 ( g ) ( 1 ) ’ s t e x t o r t o o u r f e e

- s h i f t i n g j u r i s p r u d e n c e , t h e y

a r e n o t r e q u i r e d f

o r c h a n n e l i n g a c o u r t ’ s d i s c r e t i o n w h e n a w a r d i n g f e e s u n d e r

t h i s s e c t i o n

. ” ) M e t L i f e m o t i o n ’ s f o r s u m m a r y j u d g m e n t w a s u n o p p o s e d b y

Linco ln did not objec t to the reas onable nes s of Me tLif e’s fee s bef

ore the dis tri ct cour t. 2

Linco ln’s fai lure to objec t me ans it wa ived the right to app eal that iss ue. Zhang v. Go nza le s , 432 F.3d 339

, 346–47 (5t h Cir

. 2005)

.

Thes e fac tor s are: (1) the degr ee of the opp os ing par ty’s bad fai th or c u l p a b ilit y; (2) 3

the opp os ing par ty’s abilit y to sat isf y an att orne y’s fee aw ard ; (3) wh et h e r an aw ard of

att orne y’s fee s agains t the opp os ing par ty wo uld det er othe rs fr om act ing unde r s i m i l a r cir cum st ance s; (4) wh ethe r the par ty requ es ting att orne y’s fee s a i m e d to benef it all

p a r t i c i p a n ts and benef icia ries of an ERISA plan or to res olve a signi fic ant legal ques tio n

regar ding ERISA; (5) the me rit s of the par ties ’ pos itio ns. Ha rdt

, 130 S. Ct. at 2154 n.1; see al so Di al v

. NFL Pla

yer Sup pl em ental D is abi li ty Pl an , 174 F.3d 606

, 613–14 (5t h Cir

. 1999)

.

3 Case: 10-11168 Document: 00511509505 Page: 3 Date Filed: 06/15/2011N o

. 1 0

- 1 1 1 6 8

L i n c o l n a n d t h e d i s t r i c t c o u r t g r a n t e d s u m m a r y j u d g m e n t i n f a v o r o f M e t L i f e o n

a l l o f L i n c o l n ’ s c l a i m s

. M e t L i f e c l e a r l y s u c c e e d e d o n t h e m e r i t s

. H a r d t

, 1 3 0

S

. C t

. a t 2 1 5 8

. I t w a s i n t h e d i s t r i c t c o u r t ’ s d i s c r e t i o n t o c o n s i d e r t h e f i v e f a c t o r s

a s i t d i d a n d t h a t c o u r t d i d n o t a b u s e i t s d i s c r e t i o n b y c o n c l u d i n g t h a t t h e f a c t o r s

p e r m i t t e d a n a w a r d i n M e t L i f e ’ s f a v o r

.

W e A F F I R M

.

4 Case: 10-11168 Document: 00511509505 Page: 4 Date Filed: 06/15/2011