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Attorney Fee Dispute Continues in BAR/BRI Case

September 28, 2010 | Posted in : Billing Practices, Ethics & Professional Responsibility, Expenses / Costs, Fee Award, Fee Dispute, Fee Dispute Litigation / ADR, Fee Entitlement / Recoverability, Fee Issues on Appeal, Fee Request

A recent NLJ story, “Judge Citing ‘Egregious Breach’ Slashes BAR/BRI Fees” reports that U.S. District Judge Manuel Real in Los Angeles, citing “egregious breach of McGuireWoods’s ethical duties,” on Monday granted $500,000 in attorney fees to the firm – significantly less than the $12 million originally awarded in a $49 million settlement with West Publishing Corp. in 2007.  Monday’s hearing was the latest in a developing saga for plaintiffs’ lawyers attempting to recover attorney fees in the antitrust case against the parent company of BAR/BRI. The underlying class action, Rodriguez v. West Publishing Corp. involved a suit by 300,000 consumers who alleged they paid an average $1,000 in overcharges for the bar examination review course because West Publishing conspired to monopolize the market in a secret deal with Kaplan, Inc., which sells preparatory courses for the LSAT.

In addition to McGuireWoods, several other attorneys want fees for having represented groups of plaintiffs who objected to the original settlement on ground of conflict of interest.  Specifically, they argue that incentive payments worth $25,000 to $75,000 that McGuireWoods promised to five class representatives were tied to the value of the settlement – providing little reason to fight rather than make a deal.  Last year, in a published opinion, the U.S. Court of Appeals for the Ninth Circuit upheld the settlement but reversed Real’s decision regarding the fees, concluding that the incentive payments, even if eliminated, presented a “disturbing appearance of impropriety.”  On remand, Real awarded no fees to McGuireWoods, saying the firm violated the California Rules of Professional Conduct by failing to inform class members about the incentive payments.

According to court records, McGuireWoods has spent more than $1.25 million in expenses and about $5.6 million in attorney time.  The $500,000 in attorney fees cover the period between July 10, 2007 and September 10, 2010.

For more information, visit http://www.barbri-classaction.com