Not Just Alive, But Thriving: Recent Developmentsin Class Action Law, page 4

Not Just Alive, But Thriving (continued)

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In this case the Ninth Circuit continued its long-standing practice of affirming attorneys' fee awards in a unique factual setting. AT&T Wireless and plaintiffs reached a settlement agreement involving holders of minority interests in certain cellular telephone markets. The District Court found that while the settlement may be fair, attorneys' fees of $10 million, as awarded by a special master, were unreasonable and tainted by plaintiffs' counsels' engagement by AT&T to monitor the settlement. Plaintiffs then hired new counsel who conducted their own discovery and negotiated a new settlement that provided for substantial injunctive relief, a $6 million settlement fund and fees to be paid from the fund. The Ninth Circuit described its review as "very limited" and found no abuse of discretion despite the fact that previous class counsel, whose conflict of interest foiled the first settlement, continued to participate in the new settlement.

In re Prudential Ins. Co. American Sales Litigation, 148 F.3d 283 (3rd Cir. 1998)

This opinion, noted above, also reversed and remanded an attorneys' fee award of $90 million. The Court remanded for findings on the contribution of the state insurance commissioners' Task Force Plan to the ultimate settlement. It also suggested that the percentage recovery of 6.7% may be too high given the size of the recovery and asked the District Court to analyze the issue in more detail. Finally, the Court criticized the District Court's lodestar cross-check, which resulted in a multiplier of 5.1 and an average hourly rate of $1,148.70, amounts which were not justified on the record before the appellate court.

In re California Indirect Purchaser X-Ray Film Antitrust Litigation, No. 960886 (San Francisco Superior Court)

In re Estate of Marcos Human Rights Litigation (Hilao v. Estate of Marcos), 103 F.3d 767 (9th Cir.); Cimino v. Raymark, 151 F.3d 297 (5th Cir. 1998). Two Circuits take diverging views on the bifurcation or multifurcation of class action personal injury trials.

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