ERISA Allows Attorneys’ Fee Awards Against Parties, Not Lawyers

A Florida attorney is off the hook for paying some of Liberty Life Assurance Co. of Boston’s attorneys’ fees in a disability payment suit because ERISA, the federal law governing the benefits, allows fee awards only against parties, not their lawyers, the Eleventh Circuit said Tuesday in a novel ruling.

The federal appeals court appears to be the first to squarely address the question. The Employee Retirement Income Security Act issue has divided the lower courts, it said.

Theresa Peer sought disability income under her employer’s employee welfare benefit plan, insured by Liberty Life, according to the court.

Liberty Life ...