Court Awards Over $230,000 in Attorneys’ Fees to Prevailing Plaintiff in ERISA Long-Term Disability Case Against First Unum

On August 27, 2025, the Southern District of New York issued an opinion in Macalou v. First Unum Life Insurance Company, No. 22-CV-10439 (PKC), 2025 WL 2463624 (S.D.N.Y. Aug. 27, 2025), granting Plaintiff A. Macalou’s motion for attorneys’ fees, costs, and prejudgment interest following her victory in securing long-term disability (“LTD”) benefits under the Employee Retirement Income Security Act of 1974 (“ERISA”). Judge P. Kevin Castel awarded more than $230,000 in fees, along with $6,660.29 in costs and $139,497.54 in prejudgment interest.

Macalou, a former employee of McKinsey & Company, brought her claim after First Unum denied her LTD benefits. She suffered from several conditions which impaired her ability to work. After a bench trial on the administrative record, the court found that she was disabled under the terms of her employer’s plan and awarded $928,954.90 in past-due benefits covering July 2021 through December 2024.

In addition, the court held that she was entitled to attorneys’ fees, costs, and prejudgment interest—issues that were decided in this recent opinion.

Attorneys’ Fees: Hourly Rates

Macalou was represented by Hiller, PC (“HPC”). Her counsel sought $252,358.50 in fees based on the following requested rates and hours:

• Michael S. Hiller (Managing Partner): $895/hour for 54.75 hours
• Jason Zakai (Partner): $600/hour for 0.7 hours
• Paul M. Kampfer (Senior Counsel): $600/hour for 369.93 hours
• Susan Fauls (Senior Paralegal): $225/hour for 10.5 hours
• Conor Spangfort (Paralegal): $165/hour for 9.65 hours

First Unum did not challenge Kampfer’s $600 rate but argued that the other requested rates were excessive, suggesting reductions to Hiller ($780), Zakai ($300), Fauls ($180–200), and Spangfort ($80–100).

Judge Castel carefully compared the requested rates with those awarded in other recent ERISA cases in the Southern District of New York. He recognized the extensive experience of Hiller and Kampfer, supported by affirmations from other leading ERISA attorneys attesting to their reputations. However, the court reduced Hiller’s hourly rate from $895 to $810, bringing it in line with prevailing market rates for highly experienced ERISA counsel. The requested rates for the other attorneys and paralegals were approved without change.

Accordingly, the court set the following reasonable rates:

• Hiller: $810/hour
• Kampfer: $600/hour
• Zakai: $600/hour
• Fauls: $225/hour
• Spangfort: $165/hour

Attorneys’ Fees: Hours Expended

HPC had billed 445.53 hours. The court noted two issues warranting reduction: (1) excessive time (over 40 hours) spent drafting a 15-page reply brief after already devoting more than 110 hours to prior trial briefs, and (2) limited delegation of work to junior attorneys. While most of the firm’s time records were sufficiently detailed and not excessive, the court concluded that a 15% across-the-board reduction was appropriate.

After this adjustment, the court awarded fees for the following hours:

• Hiller: 46.54 hours
• Zakai: 0.6 hours
• Kampfer: 314.44 hours
• Fauls: 8.93 hours
• Spangfort: 8.20 hours

This resulted in a total attorneys’ fee award of $230,083.65.

Costs and Prejudgment Interest

In addition to fees, Macalou sought reimbursement of $6,660.29 in costs, including filing fees, service of process, mediation fees, mailing expenses, PACER searches, and Lexis research charges. After reviewing the supporting documentation, the court approved the full amount.

The most contested issue was prejudgment interest. Macalou argued for a 21.8% rate, citing First Unum’s “adjusted operating return on equity” and the high-interest loans and credit card debt she incurred while awaiting benefits. First Unum argued that the rate should be capped at New York’s statutory 9% rate. Judge Castel agreed with First Unum, reasoning that a 21.8% rate would create an impermissible windfall and depart from established precedent. The court applied a 9% simple interest rate, awarding $139,497.54 in prejudgment interest.

Conclusion

The decision reinforces courts’ willingness to award substantial attorneys’ fees to prevailing ERISA plaintiffs while ensuring that both hourly rates and billed hours remain reasonable. By awarding over $230,000 in fees, more than $6,600 in costs, and nearly $140,000 in prejudgment interest, the court ensured that Macalou was fully compensated for both the benefits wrongfully withheld and the significant expense required to litigate her case.