Fee Dispute Hotline
(312) 907-7275

Assisting with High-Stakes Attorney Fee Disputes

The NALFA

News Blog

$66M in Attorney Fees in Fiat Emission MDL

February 8, 2019 | Posted in : Expenses / Costs, Fee Award, Fee Request, Practice Area: Class Action / Mass Tort / MDL

A recent Law 360 story by Mike Curley, “Lieff Cabraser, Others Collect $66M in Fiat Emission MDL,” reports that plaintiffs firms including Lieff Cabraser, Hagens Berman and Motley Rice will share up to $66 million in fees and costs paid by Fiat Chrysler and auto parts supplier Bosch in a sprawling multidistrict litigation over the automaker's diesel emissions after the companies reached a settlement with consumers.

Elizabeth J. Cabraser of Lieff Cabraser, lead counsel for the plaintiffs in the MDL and chair of the plaintiffs' steering committee that includes Hagens Berman Sobol Shapiro LLP and Motley Rice LLC, told the Northern District of California that after negotiations mediated by settlement Master Ken Feinberg, the firms will seek $59 million in attorneys’ fees and $7 million in costs.  Fiat Chrysler Automobiles NV and Robert Bosch GmbH will not oppose the motion, the notice said.  The notice comes weeks after U.S. District Judge Edward M. Chen said he’s inclined to give preliminary approval to Fiat Chrysler's $307 million deal to settle class claims that it illegally equipped diesel vehicles with devices that cheat emissions tests.

The attorneys' fees and costs come on top of the monetary compensation in the settlement, according to the notice.  The fee request is a reduction from the $106 million in fees and costs the plaintiffs requested in January, according to court documents.

Under that proposed settlement, Fiat Chrysler agreed to offer a software update that will fix the issue and ensure the vehicles are in compliance.  Eligible class members who repair the issue and submit a claim will receive $3,075, while former owners and lessees will be entitled to a $990 payout, according to court documents.  If every car owner submits a valid claim, the total value of the deal will be $307 million, according to the motion for preliminary approval.

That settlement deal is one of many Fiat Chrysler has recently cut to end claims over its defeat devices.  Earlier in January, the company agreed to pay the government a $305 million civil penalty to settle claims it violated the Clean Air Act.  Those funds will be divided between the federal government and California.

Fiat Chrysler will also pay $6 million to settle U.S. Customs and Border Protection claims that it illegally imported 1,700 noncompliant vehicles, and it agreed to pay $72.5 million, which will be split among the 49 states except for California, to settle various state law claims.  Bosch also settled its part in the matters with payments of up to $131 million.  Fiat Chrysler and Bosch are the latest companies to face the music regarding the use of defeat devices, joining the likes of Volkswagen AG, which says it has paid almost $23 billion to settle its legal battles.

"Legal fees are subject to the approval of the court, and are in addition to the $307.5 million in consumer compensation, extended warranties and other benefits of the class action settlement," Cabraser said in a statement.  "We are asking the court to approve the class notice which describes all these benefits and to set a fairness hearing for early May 2019."

The case is In re: Chrysler-Dodge-Jeep EcoDiesel Marketing, Sales Practices and Products Liability Litigation, case number 3:17-md-02777, in the U.S. District Court for the Northern District of California.