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Settling ERISA Actions After a Decision on the Merits May Open the Door for Attorney's Fees
Littler Sept. 24, 2013
"The [Second Circuit Court of Appeals] explained that a party who obtains relief due to the voluntary conduct of another party after minimal litigation is unlikely to succeed in seeking attorney's fees. However, under this 'catalyst theory,' if the parties received a 'tentative analysis of their legal claims,' a party may recover attorney's fees if it is able to show that the court's discussion of the pending claims resulted in the obtained relief. This case demonstrates the importance of performing a careful risk analysis at the beginning of an ERISA action to determine whether a settlement can be reached." [Scarangella v. Group Health, Inc., No. 12-2750 (2d Cir. Sept. 10, 2013)]
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