This post continues the article posted on Insurance Claims and Bad Faith Law Blog on Tuesday, December 2, 2014, "CLASS ACTION SETTLEMENTS, INCLUDING IN LENDER FORCE-PLACED INSURANCE (“LFPI”) CASES."
The Seventh Circuit has sent up a rocket of an opinon. The author of the opinion is Judge Richard Posner in the case of Pearson v. NBTY, Inc., ___ F.3d ___, 2014 WL 6466128 (7th Cir. November 19, 2014). A check of the docket reflects that no further notice of appeal or petition for certiorari has been filed at this time.
In this consolidated set of appeals, all from cases involving State Consumer Protection Laws, the Seventh Circuit tracked Judge Posner's usual focus on detail ending with a devastating evaluation of the whole picture. The Court unanimously rejected a U.S. District Judge's decision to approve a class action settlement particularly but not exclusively in the matter of an attorney's fee award. These are the figures reported by Judge Posner and the Seventh Circuit in this ordinary case:
The settling plaintiffs requested attorney's fees of $4,500,000.00.
The District Judge awarded $1,930,000.00 in attorney's fees.
The class plaintiffs who submitted claims received $865,284.00.
The factors elaborated in the decision rejecting this class action settlement are broken out for view in a post to be continued on Insurance Claims and Issues Blog. Suffice it to say as the Seventh Circuit did, in memorable words written by Judge Posner on the big picture in this typical class action settlement while stepping back from all these individual factors and looking at the class action as a whole:
And for conferring these meager benefits class counsel should receive almost $2 million?
Pearson v. NBTY, Inc., ___ F.3d ___, 2014 WL 6466128 *9 (7th Cir. November 19, 2014).
Please Read The Disclaimer. Copyright 2014 by Dennis J. Wall. No claim to Original U.S. Government Works.