Grandson v. Western Lake Superior Piping Industry Pension Plan

District Court, D. Minnesota·Decided March 21, 2025·No. 0:23-cv-00214·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

JAMES GRANDSON, Case No. 23-cv-214 (LMP/LIB)

Plaintiff,

v. ORDER GRANTING PLAINTIFF’S WESTERN LAKE SUPERIOR PIPING MOTION FOR INDUSTRY PENSION PLAN; BOARD ATTORNEYS’ FEES AND COSTS OF TRUSTEES OF THE WESTERN LAKE SUPERIOR PIPING INDUSTRY PENSION PLAN,

Defendants.

Denise Yegge Tataryn, Nolan Thompson Leighton & Tataryn PLC, Hopkins, MN, for Plaintiff.

Ernest F. Peake & Stacey L. Drentlaw, Taft Stettinius & Hollister LLP, Minneapolis, MN, for Defendants.

On January 27, 2025, the Court granted summary judgment in favor of Plaintiff James Grandson (“Grandson”) against Defendants Western Lake Superior Piping Industry Pension Plan and Board of Trustees of the Western Lake Superior Piping Industry Pension Plan (collectively, “Defendants”). Grandson now moves for attorneys’ fees and costs under 29 U.S.C. § 1132(g)(1). See ECF No. 80. For the following reasons, Grandson’s motion is granted, and he is awarded $107,710.00 in attorneys’ fees and $1,334.05 in costs. FACTUAL BACKGROUND1 On January 27, 2023, Grandson brought this action under the Employee Retirement

Income Security Act (“ERISA”) for breach of fiduciary duty and benefits due under the terms of his Pension Plan. See ECF No. 1. Litigation in this case proceeded on a relatively normal path: Defendants originally moved to dismiss Grandson’s complaint, ECF No. 13, which U.S. District Judge Jerry W. Blackwell granted in part and denied in part, ECF No. 22 . Relevant here, Judge Blackwell denied Defendants’ motion to dismiss Grandson’s benefits-due claim. Id. At the hearing on Defendants’ motion to dismiss, Judge Blackwell

represented that Defendants’ interpretation of the Pension Plan “seems to contradict the plain language of the Plan and the Summary Plan Description.” ECF No. 26 at 32. Grandson then moved for leave to amend his complaint, see ECF No. 32, which was required because Defendants would not permit the amendments without a motion, ECF No. 82 ¶ 9. The Court granted leave to amend. See ECF No. 40.

Discovery then commenced, which was largely uneventful.2 The parties then each moved for summary judgment on Grandson’s benefits-due and fiduciary-duty claims. ECF Nos. 53, 59. On January 27, 2025, the Court granted Grandson’s motion for summary judgment and denied Defendants’ motion for summary judgment. ECF No. 78. The Court first rejected Defendants’ argument that Grandson had failed to properly exhaust his

1 The Court presumes familiarity with the specific facts of this case and incorporates the facts from the Court’s summary-judgment order herein. See ECF No. 78 at 2–6.

2 Grandson filed a motion to compel discovery, ECF No. 47, but the parties later resolved their discovery disputes without intervention of the Court, ECF No. 52. administrative remedies. See id. at 7–9. The Court then applied the five-factor test from Finley v. Special Agents Mutual Benefit Association, Inc., 957 F.2d 617, 621 (8th Cir. 1992),

and concluded that the Trustees’ decision to deny Grandson an actuarial increase from his normal retirement benefit was an abuse of discretion. Id. at 9–21. Specifically, the Court concluded that the Defendants’ interpretation of the Pension Plan contradicted the plan’s plain language, that Defendants’ interpretation of the plan rendered the plan’s definition of “Disqualifying Employment” meaningless, that the Plan’s denial of benefits was inconsistent with Plan objectives and ERISA’s purpose, and that any limited evidence of

consistent interpretation by the Trustees could not overcome the other Finley factors. Id. Because the Court granted summary judgment to Grandson on his benefits-due claim, it did not reach the merits of his breach-of-fiduciary-duty claim. Id. at 21 n.12. As contemplated in this Court’s Order granting summary judgment to Grandson, ECF No. 78 at 21, Grandson now moves for attorneys’ fees and costs pursuant to 29 U.S.C.

§ 1132(g)(1). ECF No. 80. Grandson seeks $135,700.00 in attorneys’ fees for the services of his two attorneys: Denise Tataryn and Jody Galman. See ECF Nos. 82, 82-1. Grandson also seeks $1,334.05 in costs. ECF No. 82-1 at 12. Defendants assert that Grandson is not entitled to attorneys’ fees and costs and, even if he is entitled to fees and costs, the attorneys’ fees sought should be reduced for unnecessary and excessive work. See ECF No. 86.

ANALYSIS In an ERISA action by a beneficiary, a district court may award “a reasonable attorney’s fee and costs of action to either party.” 29 U.S.C. § 1132(g)(1). The party seeking fees and costs must show “some degree of success on the merits” but need not be a “prevailing party.” Hardt v. Reliance Standard Life Ins. Co., 560 U.S. 242, 244–45 (2010). There is no dispute that Grandson, who succeeded on his benefits-due claim at

summary judgment, is a “prevailing party.” Johnson v. Charps Welding & Fabricating, Inc., 950 F.3d 510, 525 (8th Cir. 2020). The Court recognizes that “although there is no presumption in favor of attorney fees in an ERISA action, a prevailing plaintiff rarely fails to receive fees.” Starr v. Metro Sys., Inc., 461 F.3d 1036, 1040–41 (8th Cir. 2006). Nonetheless, an award of attorneys’ fees and costs under Section 1132(g)(1) is discretionary, not mandatory. See Hardt, 560

U.S. at 254. Therefore, the Court must first determine whether an award of attorneys’ fees and costs is appropriate. If the answer to this question is “yes,” then the Court must calculate the “reasonable” attorneys’ fees and costs. 29 U.S.C. § 1132(g)(1). I. Whether to Award Attorneys’ Fees and Costs In determining whether to award attorneys’ fees and costs under Section 1132(g),

courts consider five non-exclusive factors, “which are general guidelines, not mechanically applied.” Johnson, 950 F.3d at 525. These factors are: “(1) the degree of the opposing parties’ culpability or bad faith; (2) the opposing parties’ ability to satisfy an award; (3) deterrence of others in similar circumstances; (4) whether the requesting parties sought to benefit all participants and beneficiaries of an ERISA plan, or to resolve a significant

legal ERISA question; and (5) the relative merits of the parties’ positions.” Id. (citing Lawrence v. Westerhaus, 749 F.2d 494, 495–96 (8th Cir. 1984)). The Court considers each factor in turn. a. Degree of Defendants’ Culpability or Bad Faith Contrary to Defendants’ assertion, see ECF No. 86 at 2, when evaluating a party’s

culpability under this factor, the Court need not find bad faith. See Starr, 461 F.3d at 1041 (“[T]he absence of bad faith is not dispositive.”). Rather, culpability may be found when a defendant fails to “exercise the care required of it in the administrative process.” Proctor v. Unum Life Ins. Co. of Am., No. 20-cv-2472 (JRT/DTS), 2022 WL 4585278, at *18 (D. Minn. Sept. 29, 2022); see also Kaminski v. UNUM Life Ins. Co. of Am., 517 F. Supp. 3d 825, 869 (D. Minn. 2021) (finding culpability when an insurance company “could have

exercised greater care in reviewing the record”); Jalowiec v. Aetna Life Ins. Co., 155 F. Supp. 3d 915, 949 (D. Minn.

Free access — add to your briefcase to read the full text and ask questions with AI

Grandson v. Western Lake Superior Piping Industry Pension Plan, (mnd 2025).

Grandson v. Western Lake Superior Piping Industry Pension Plan (Grandson v. Western Lake Superior Piping Industry Pension Plan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
City of Riverside v. Rivera
477 U.S. 561 (Supreme Court, 1986)
El-Tabech v. Clarke
616 F.3d 834 (Eighth Circuit, 2010)
Frank Music Corp. v. Metro-Goldwyn-Mayer Inc.
886 F.2d 1545 (Ninth Circuit, 1989)
Emery v. Hunt
272 F.3d 1042 (Eighth Circuit, 2001)
Moreno v. City of Sacramento
534 F.3d 1106 (Ninth Circuit, 2008)
Musicland Group, Inc. v. Ceridian Corp.
508 N.W.2d 524 (Court of Appeals of Minnesota, 1993)
Mogck v. Unum Life Insurance Co. of America
289 F. Supp. 2d 1181 (S.D. California, 2003)
Rodney Waldoch v. Medtronic, Inc.
757 F.3d 822 (Eighth Circuit, 2014)
Glen Johnson v. Charps Welding & Fabricating
950 F.3d 510 (Eighth Circuit, 2020)
Jalowiec v. Aetna Life Insurance
155 F. Supp. 3d 915 (D. Minnesota, 2015)