Kelly v. Altria Client Services, LLC

District Court, E.D. Virginia·Decided August 11, 2025·No. 3:23-cv-00725·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Richmond Division RICHARD D. KELLY, ) ) Plaintiff, ) ) v. ) Civil Action No. 3:23-cv-725-HEH ) ALTRIA CLIENT SERVICES, LLC, ) et al., ) ) Defendants. ) MEMORANDUM OPINION (Resolving Motions for Attorneys’ Fees) THIS MATTER is before the Court on the awarding of attorneys’ fees. On March 26, 2025, this Court granted Defendant Altria Client Services, LLC (“Altria”) and Deferred Profit-Sharing Plan for Salaried Employees’ (“DPS Plan”) (collectively, “Altria Defendants”) Motion for Summary Judgment and Defendant Fidelity Workplace Services, LLC’s (“Fidelity”) Motion for Summary Judgment, and denied Plaintiff Richard D. Kelly’s (“Plaintiff”) Motion for Summary Judgment. Altria Defendants and Fidelity now move for the award of attorneys’ fees. (ECF Nos. 121, 123.) The parties have filed memoranda in support of their positions, and the Court will dispense with oral argument because the facts and legal contentions are adequately presented in the materials before it, and oral argument would not aid in the decisional process. See E.D. Va. Loc. Civ. R. 7(J).

I. BACKGROUND The factual dispute has been well documented by the Court in its previous opinion on summary judgment. (Summ. J. Mem. Op., ECF No. 114.) Plaintiff □□ a former employee of Altria and participated in the DPS Plan under § 1002(7) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001, et seg. (“ERISA”). (Ud. at 3.) The DPS Plan is sponsored by Altria and is an employee pension benefit plan under § 1002(2) of ERISA. (/d.) Fidelity operates the “Benefits Center” of the DPS Plan, which entails processing benefit exchanges requested by participants and other recordkeeping functions. (/d.) Altria and Fidelity contracted to provide “directed and ministerial recordkeeping services” for the DPS Plan as well as for other Altria-sponsored ERISA plans. (/d.) This relationship is memorialized in an Administrative Service Agreement (“ASA”). (/d.) In October 2020, Plaintiff “decided he wanted to liquidate the funds from his DPS Plan account and put them into an investment account with Goldman Sachs.” (/d.) Plaintiff then had several phone calls in October 2020 with Fidelity for guidance on this transaction. (U/d.) On November 2, 2020, and November 5, 2020, Plaintiff called Fidelity to request a distribution of his assets in his DPS Plan account to his personal account at Goldman Sachs. (/d. at 4.) During these calls, Plaintiff asked Fidelity to conduct two (2) transactions: (1) liquidate his DPS Plan funds through “an in-kind distribution of the non- Altria stock” in his DPS Plan account, and (2) “‘a cash rollover of the remainder of [his] DPS Plan account balance relating to his Altria Group, Inc. stock.” (/d. at 4.) Plaintiff informed Fidelity that he wanted the transaction completed as quickly as possible. (Jd.

at 5.) Plaintiff contended that the timing of these requests was critical and strategic due to the upcoming election. (/d. at 10-11.) However, he asserted that Fidelity failed to timely process his requests, causing Plaintiff to miss out on an approximate gain of $259,433. Ud. at 11.) Based on this sequence of events, Plaintiff brought the following claims in his Complaint: Count I—Enforce and Clarify Right to Benefits, 29 U.S.C. § 1132(a)(1)(B), against the Altria Defendants; Count II—Request for Full and Fair Review under ERISA, Request for Remand—in the Alternative, against the Altria Defendants; Count II]—Breach of Fiduciary Duty under ERISA against the Altria Defendants and Fidelity; and Count [V—Claim for Statutory Penalties under ERISA, 29 U.S.C. § 1132(a)(1)(A), against Altria. (Compl. {{ 49-73.) On August 1, 2024, the Court granted in part Altria Defendants’ Motion to Dismiss and denied Fidelity’s Motion to Dismiss. (Mot. to Dismiss Mem. Order, ECF No. 64.) The Court dismissed without prejudice Count II of Plaintiff's complaint. (/d. at 8.) The Court denied the motion to dismiss for Counts I and III because Plaintiff contested the authenticity of the transcripts of his phone calls with Fidelity and, therefore, the Court could not consider them at that stage. (/d. at 7.) Additionally, the Court denied the motion to dismiss for Count IV because Altria Defendants did not provide Plaintiff with a copy of the Service Agreement. (/d. at 13.) In its ruling on summary judgment on March 26, 2025, the Court found “that Altria Defendants did not abuse their discretion when the Altria Client Services Management Committee for Employee Benefits’ (“MCEB”) decision denied Plaintiff's

claim for benefits.” (Summ. J. Mem. Op. at 15.) Additionally, the Court held “that Fidelity did not act as a fiduciary, and even if its conduct elevated its status to that of a fiduciary, Plaintiff has failed to show there was a material breach of this duty.” (Jd. at 33.) As aresult, the Court granted Defendants’ motions for summary judgment and denied Plaintiff's Motion for Summary Judgment. (/d. at 40.) II. LEGAL STANDARD Whether attorneys’ fees should be awarded in an ERISA action is completely within the discretion of the district court. ERISA § 502(g), 29 U.S.C. § 1132(g); Quesinberry v. Life Ins. Co. of N. Am., 987 F.2d 1017, 1029 (4th Cir. 1993). Once a court determines that a litigant in an ERISA case has achieved “some degree of success on the merits,” the court applies the guidelines identified by the Fourth Circuit in Quesinberry to determine whether to award attorneys’ fees to an eligible party. Williams v. Metro. Life Ins. Co., 609 F.3d 622, 634 (4th Cir. 2010) (citing Quesinberry, 987 at 1029). Accordingly, the district court considers the following five (5) factors when determining the appropriateness of attorneys’ fees under ERISA: (1) degree of opposing parties’ culpability or bad faith; (2) ability of opposing parties to satisfy an award of attorneys’ fees; (3) whether an award of attorneys’ fees against the opposing parties would deter other persons acting under similar circumstances; (4) whether the parties requesting attorneys’ fees sought to benefit all participants and beneficiaries of an ERISA plan or to resolve a significant legal question regarding ERISA itself; and (5) the relative merits of the parties’ positions. Id. (citing Reinking v. Philadelphia Am. Life Ins. Co., 910 F.2d 1210, 1217-18 (4th Cir. 1990)).

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

Kelly v. Altria Client Services, LLC, (E.D. Va. 2025).

Kelly v. Altria Client Services, LLC (Kelly v. Altria Client Services, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related