Can You Recover Attorney’s Fees for Winning Your Long-Term Disability Appeal?

Employees in Chicago and around the rest of the county with denied or terminated claims for long-term disability insurance often want to know whether they can recover the attorney’s fees they incur to get their claim back in pay status. The short answer is that you cannot recover attorney’s fees you incur for successfully appealing a long-term disability insurance denial or termination, but you can recover attorney’s fees for time spent in litigation over a denial or termination of the long-term disability benefits. A recent case highlighted this distinction and its rationale.

In Stark v. Reliance Standard Life Insurance Co., No. 24-6137, 2025 WL 1872420 (10^th Cir. Jul. 8, 2025), Stark was the mother and legal guardian of the insured, Jill Finley. In 2007, Finley suffered a brain injury leaving her unable to work anymore. Finley claimed and received long-term disability insurance benefits under her employer’s group insurance policy, insured by Reliance Standard. Fifteen years into paying long-term disability benefits, Reliance Standard terminated those benefits contending recent evidence did not support continued disability. Stark hired an attorney for her daughter who successfully appealed the benefit termination, convincing Reliance Standard to reinstate the long-term disability insurance benefits. The attorney specifically requested Reliance Standard reimburse Finley for the attorney’s fees she incurred to get her benefits reinstated. Reliance refused. Stark then sued under ERISA § 502(a) for the attorney’s fees.

The United States Court of Appeals for the Tenth Circuit explained that while a plaintiff can recover attorney’s fees and costs under 29 U.S.C. 1132(g), the text of the statute limits those fees and costs to fees and costs “of the action,” which signals only those fees and costs incurred in litigation are recoverable. The Court explained its reading of the statute was consistent with every court of appeals to have considered the issue, citing numerous other cases.

If your claim for long-term disability benefits has been denied or terminated, speak with a knowledgeable ERISA long-term disability attorney today.