The Verizon Employee Benefits Committee v. Nikolaros, 1:23-cv-01982

Nick Nikolaros, a Verizon employee, participated in the Verizon Pension Plan and died, leaving a pre-retirement survivor benefit.
The Verizon Employee Benefits Committee (VEBC) filed an interpleader action to determine the correct beneficiary among Georgia Nikolaros (sister), Parthena Nikolaros (ex-wife), and Athina Nikolaros (representing Nick’s estate).
On summary judgment, the court decided the death benefit is payable in full to Nick’s estate through Athina Nikolaros.
VEBC sought $30,240 in attorney’s fees from the ~ $406,000 benefit amount due to the estate.
The estate opposed VEBC's fee motion, arguing the interpleader was an ordinary cost of business.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Should VEBC be awarded attorney's fees in an interpleader action over pension benefits?	VEBC is a disinterested stakeholder, brought action in good faith, not seeking the funds.	The interpleader action was routine and represents a standard business cost for plan administrators.	No; the court found this was not an unusual or complex case, and such costs are part of the ordinary course of business for plan administrators.

Travelers Indem. Co. v. Israel, 354 F.2d 488 (2d Cir. 1965) (interpleader fees are at the discretion of the court, and routine business costs should not be shifted)
Septembertide Publ’g, B.V. v. Stein & Day, Inc., 884 F.2d 675 (2d Cir. 1989) (standards for fee awards in interpleader actions)