McFarlane v. First UNUM Life Insurance Company

CourtDistrict Court, S.D. New York
DecidedMarch 27, 2020
Docket1:16-cv-07806
StatusUnknown

This text of McFarlane v. First UNUM Life Insurance Company (McFarlane v. First UNUM Life Insurance Company) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McFarlane v. First UNUM Life Insurance Company, (S.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT EDLOECC#:T RONICALLY FILED SOUTHERN DISTRICT OF NEW YORK DATE FILED: 3/27/2020

CHERYLLE MCFARLANE,

Plaintiff, No. 16-CV-7806 (RA) v. OPINION & ORDER FIRST UNUM LIFE INSURANCE COMPANY,

Defendant.

RONNIE ABRAMS, United States District Judge: Plaintiff Cherylle McFarlane filed this action against Defendant First Unum Life Insurance Company for claims related to its termination of her disability benefits. Dkt. 1. On December 18, 2018,1 Defendant notified the Court that it had effectively settled with Plaintiff, Dkt. 131, and the Court adjourned the scheduled trial sine die as a result, Dkt. 134. On January 11, 2019, Plaintiff filed a motion for attorney’s fees, Dkt. 137, which the Court granted in part on September 5, 2019, Dkt. 159; see also Dkt. 163 (Sept. 5, 2019 Tr. or “Tr.”). Specifically, the Court awarded Plaintiff (1) $327,600 in attorney’s fees, (2) $2,340 in paralegal fees, (3) $4,481.47 in costs, and (4) $7,120.58 in prejudgment interest. See Dkt 159.2 In doing so, the Court concluded that $600 is a reasonable hourly rate for Plaintiff’s attorney, Jeffrey Delott. Now before the Court is Plaintiff’s motion for reconsideration as to the award of $327,600 in attorney’s fees, and in particular, as to

1 The letter filed by Defendant on December 18, 2018 seems to be inadvertently dated November 18, 2017. See Dkt. 131. 2 The calculations for these amounts are set forth in Dkt. 159. the reasonable hourly rate of $600.3 For the reasons set forth below, Plaintiff’s motion for reconsideration is denied. DISCUSSION The Court assumes the parties’ familiarity with the underlying facts and procedural history

of this action as set forth in its prior opinions. See, e.g., Dkt. 84. Reconsideration of a court’s previous order is an “extraordinary remedy to be employed sparingly in the interests of finality and conservation of scarce judicial resources.” In re Health Mgmt. Sys., Inc. Sec. Litig., 113 F. Supp. 2d 613, 614 (S.D.N.Y. 2000) (citation omitted). To prevail on a motion for reconsideration, the movant must identify “an intervening change in controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest injustice.” Virgin Atl. Airways, Ltd. v. Nat’l Mediation Bd., 956 F.2d 1245, 1255 (2d Cir. 1992) (citation omitted). The standard “is strict, and reconsideration will generally be denied unless the moving party can point to controlling decisions or data that the court overlooked.” Compunnel Software Grp., Inc. v. Gupta, No. 14-CV-4790 (RA), 2019 WL 2174085, at *2

(S.D.N.Y. May 20, 2019) (quoting Bldg. Serv. 32BJ Health Fund v. GCA Servs. Grp., Inc., No. 15-CV-6114 (PAE), 2017 WL 1283843, at *1 (S.D.N.Y. Apr. 5, 2017)); see also Shrader v. CSXTransp., Inc., 70 F.3d 255, 257 (2d Cir. 1995) (“[A] motion to reconsider should not be granted where the moving party seeks solely to relitigate an issue already decided.”). “The decision to grant or deny a motion for reconsideration is within the sound discretion of the district court.” Corines v. Am. Physicians Ins. Tr., 769 F. Supp. 2d 584, 594 (S.D.N.Y. 2011).

3 Plaintiff filed a letter motion on September 16, 2019, “ask[ing] the Court to reconsider that part of the order, entered on September 5, 2019, which reduced the requested hourly rate for attorney fees . . . to $600,” Dkt. 160, which the Court construed as a motion for reconsideration, see Dkt. 165. Defendant filed a response to Plaintiff’s letter motion on October 2, 2019, Dkt. 166, and Plaintiff filed a reply that same day, Dkt. 167. Here, Plaintiff does not actually assert any “intervening change in controlling law,” new evidence, or “need to correct a clear error or prevent manifest injustice.” Virgin Atl. Airways, 956 F.2d at 1255. Rather, Plaintiff contends that the Court “overlooked controlling law and material facts when it rejected $700 an hour as the prevailing rate for an attorney in this District prosecuting

a disability benefit appeal under ERISA.” Pl. Ltr., Dkt. 160, at 1. Specifically, Plaintiff asserts that the Court “overlooked” certain cases, such as Blum v. Stenson, 465 U.S. 886 (1984), as well as certain facts from other cases cited in the Court’s ruling, such as Dimopoulou v. First Unum Life Ins. Co., No. 13-cv-7159 (ALC), 2017 WL 464430 (S.D.N.Y. Feb. 3, 2017) and Sheet Metal Workers’ Nat’l Pension Fund v. Maximum Metal Mfrs. Inc., No. 13 Civ. 7741 (PAE), 2015 WL 4935116 (S.D.N.Y. Aug. 18, 2015). See id. Plaintiff also argues that the Court improperly “equated 35 years of experience with that of 20-25 years,” “overlooked” case law that approved higher fees for attorneys with 20-25 years of experience, and “overlooked” the fact that “prevailing rates have increased” over the past 3.5 years. Id. at 3. Plaintiff thus urges the Court to revisit its finding that $600 is a reasonable hourly rate, and to instead conclude that $700 is the proper hourly

rate for this case.4 As an initial matter, the Court expressly referenced Blum in its bench ruling, see Tr. at 12, and in no way “overlooked” that case.5 Similarly, the Court did not “overlook[] the rate that was approved [in Dimopoulou] for attorneys with 20-25 years experience, and the amount of time that elapsed since that rate was approved.” Pl. Ltr. at 1. Nor did the Court “overlook[] the passage of time” or “that Mr. Delott has been practicing law for 35 years.” Id. at 2. To the contrary, the

4 Although Plaintiff argues that $700 is the reasonable hourly rate, the Court notes that as of December 2018, Mr. Delott’s hourly rate was $600, see Dkt. 132, and that when Plaintiff first filed her motion for attorney’s fees in January 2019, his hourly rate was $675, see Dkt. 138 at 6, 19, 21. 5 Blum held that the reasonable rate is to be “calculated according to the prevailing market rates in the relevant community,” 465 U.S. at 895, which is precisely what the Court did in its initial ruling, see Tr. at 12. Court specifically noted that “Mr. Delott graduated law school in 1984 and has 35 years of litigation experience,” Tr. at 12, and that he “has over 30 years of experience,” id. at 13. Despite these facts, however, the Court concluded that $600 was a reasonable hourly rate given that “other courts in this district have awarded rates lower than $600 per hour in ERISA actions to partners

with comparable experience” and “Mr. Delott was awarded an hourly rate of $450 in this district a decade ago,” and in light of “the additional factors from Arbor Hill.”6 Tr. at 13. Indeed, as Defendant points out, the number of years that an attorney has been practicing is only one of the twelve factors that courts consider when determining the reasonable hourly rate. See Arbor Hill, 522 F.3d at 186 n.3. As to Sheet Metal Workers, Plaintiff’s suggestion that the Court somehow “overlooked” the law because that case “had nothing to do with an individual seeking disability benefits” and therefore “did not involve similar legal services,” Pl. Ltr. at 1, is unavailing. Plaintiff maintains that because Sheet Metal Workers “was decided over four years ago, it has absolutely nothing to do with an appeal of disability benefits under ERISA, and as a result, the Order overlook[ed]

controlling law and material facts.” Id. at 3. The Court disagrees, particularly since Sheet Metal Workers––a case brought under ERISA like the present one––is but one example of “similar cases” that the Court properly considered. See Arbor Hill, 522 F.3d at 186 n.3 (noting that “awards in

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Related

Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
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684 F.3d 36 (Second Circuit, 2012)
Corines v. American Physicians Insurance Trust
769 F. Supp. 2d 584 (S.D. New York, 2011)
Allied Maritime, Inc. v. the Rice Corp.
361 F. Supp. 2d 148 (S.D. New York, 2004)
In Re Health Management Systems, Inc. Securities Litigation
113 F. Supp. 2d 613 (S.D. New York, 2000)
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156 F.3d 136 (Second Circuit, 1998)

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Bluebook (online)
McFarlane v. First UNUM Life Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcfarlane-v-first-unum-life-insurance-company-nysd-2020.