In Hardt v. Reliance Standard Life Insurance Co.,1 the U.S. Supreme Court dramatically altered the landscape for benefits litigation under the Employee Retirement Income Security Act of 1974 (ERISA), changing the rules governing fee-shifting under the statute by adopting a less stringent and more amorphous standard for claimants to meet.

Prior to Hardt, the circuit courts had fashioned a five-factor test for the award of fees that required a district court to consider (1) the culpability or bad faith of the opposing party; (2) the ability of the opposing party to pay an award; (3) the deterrent effect on other similarly situated persons; (4) the benefit that a successful suit confers on plan participants or beneficiaries generally or the significance of the legal issue; and (5) the relative merit of the parties’ positions.2

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