Court Orders Over $314,000 in Attorney’s Fees and More Than $740,000 in Benefits to Prevailing Plaintiff in ERISA Long-Term Disability Case Against Unum

In Wessberg v. Unum Life Insurance Company of America, No. CV 22-94 (JRT/DLM), 2025 WL 2624369 (D. Minn. Sept. 11, 2025), a recent decision from the District of Minnesota, the Court awarded Plaintiff Wessberg substantial relief in her ERISA long-term disability case against Unum Life Insurance Company of America. Judge John R. Tunheim ordered Unum to pay more than $741,000 in retroactive benefits and prejudgment interest, along with $314,440 in attorney’s fees and $2,698 in costs.

Background

Ms. Wessberg was diagnosed with and disabled by cancer when Unum terminated her long-term disability (“LTD”) benefits. In July 2024, the Court found that Unum’s termination was improper and ordered reinstatement of benefits along with an award of reasonable attorney’s fees and costs. (We wrote about the Court’s decision here.) When the parties could not agree on fees, costs, or the calculation of prejudgment interest, the issue returned to the Court.

Benefits and Interest Awarded

The parties agreed that Unum owed retroactive benefits of $663,234.14 covering the period from September 8, 2020 through July 16, 2024. The parties also agreed to $77,851.17 in prejudgment interest, bringing the total benefits owed to $741,085.31.

Attorney’s Fees Analysis

Wessberg requested $445,488.75 in attorney’s fees. Unum opposed, arguing the amount should be reduced to under $94,000.

The Court carefully reviewed the billing records and addressed several challenges:

• Hourly Rates: The Court found most of the rates reasonable, including $390/hour for lead counsel Elizabeth Wright and $475/hour for Christopher Daniels. Michael Rothman’s higher rates (up to $675/hour) were reduced to $550/hour for certain periods.
• Unsuccessful Motions: The Court cut 50% of the hours billed for motions to expand the administrative record, to compel discovery, and an attempt to secure a bench trial.
• Block Billing: Unum asked for a reduction because of block billing entries, but the Court declined to cut fees on this basis, finding the billing descriptions sufficiently specific.
• Excessive Billing: The court applied a 15% across-the-board reduction to account for excessive hours on drafting, motions, and post-order activities.
• Clerical Tasks: Hours spent on purely administrative work (e.g., filing, docket monitoring) were billed at paralegal rates instead of attorney rates.

After these reductions, the Court set the final attorney’s fee award at $314,440.29.

Costs Awarded

While Wessberg sought nearly $10,000 in costs, the Court reduced the award to $2,698.15. It excluded expenses for legal research databases, postage and parking, and excessive data storage charges.

Takeaway

This case highlights the Court’s willingness to hold insurers accountable under ERISA when disability benefits are wrongfully terminated. Importantly, the decision underscores that plaintiffs who prevail are entitled not only to retroactive benefits and interest, but also to substantial recovery of attorney’s fees and costs—even after close scrutiny of billing practices.

For disability claimants, the ruling reaffirms that pursuing litigation can result in full vindication of rights, including financial compensation for the costs of fighting an improper benefit denial.