Second Circuit: Settling ERISA Actions After a Decision on the Merits May Open the Door for Attorney’s Fees

In Scarangella v. Group Health, Inc., the U.S. Court of Appeals for the Second Circuit recently applied the Supreme Court’s decision in Hardt v. Reliance Std, Life Ins. Co., requiring a party to show that they achieved “some degree of success on the merits” before recovering attorney’s fees in an action under the Employee Retirement Income Security Act (ERISA) to a situation involving voluntary settlement between parties. The decision provides some additional guidance as to how courts may make the determination on whether or not they will award attorney’s fees in ERISA cases where there is no clear winner at the end of litigation.