Special Fee Shifting Statute: Third Circuit Court Of Appeals Finds Catalyst Theory Will Justify Fee Recovery Even If No Judgment Entered For Somewhat Successful Party

 

Third Circuit Follows Four Other Circuit Courts On “Catalyst Theory.”

     In Templin v. Independence Blue Cross, No. 13-4493 (3d Cir. May 8, 2015) (precedential), the Third Circuit determined that litigants who catalyze the defense to change conduct in ERISA cases can discretionarily collect attorney’s fees even if no judgment is entered—different than “prevailing party” analysis. Templin followed the lead of four other circuit courts recognizing the catalyst theory and also citing to U.S. Supreme Court precedent that only some degree of success was necessary. The district judge’s denial of fee recovery was remanded for a “re-do” after properly weighing all the discretionary factors.

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