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Judge Reduces Fee Request in Hyundia-Kia Fuel Economy MDL

May 12, 2015 | Posted in : Fee Award, Fee Award Factors, Fee Expert / Member, Fee Reduction, Fee Request, Hourly Rates, Lodestar

A recent Law 360 story, “Judge Halves ‘Absurd’ $6M McCune Wright Fee Bid in Kia MDL,” reports that a federal judge pumped the brakes on McCune Wright’s request for attorney fees for an “absurd” $6 million enhanced fee award in multidistrict litigation accusing Kia Motors and Hyundai Motors of overstating their vehicles’ fuel efficiency, awarding $2.8 million instead.

The firm had argued in its brief that it is entitled to a three-time multiplier of its lodestar in part because it had to pass on other cases in order to pursue one of the first-filed class claims over Hyundai’s allegedly overstated fuel efficiency, brought by Kehlie R. Espinosa.

At a hearing in Los Angeles, Richard McCune of McCune Wright told U.S. District Judge George H. Wu that the firm was deserving an award more than double the $2.7 million received by co-lead counsel Hagens Berman Sobol Shaprio because it took the largest risk, having filed suit before Hyundai and Kia revealed they had overstated the mileage in their vehicles.

Judge Wu, however disagreed, noting that Hagens Berman got only a 1.22-times multiplier and billed roughly double the hours as McCune Wright did at an average of $375 an hour, and pointing out that while McCune Wright did take a risk filing the Espinosa case before the automakers’ announcement, that case was only against Hyundai and was based on a false advertising theory that ended not being part of this case by the time it settled.

“I do understand the McCune firm was one of the first that area, but it wasn’t the only one,” he said. “The problem is, if I give what you’re asking for, that’s $1,980 an hour, which, no offence, is absurd.”  Judge Wu said he would instead apply a 1.55-times multiplier and award attorneys’ fees of $2.85 million to McCune Wright.

NALFA attorney fee expert Gary Greenfield of Litigation Cost Management in Oakland was retained by defendants Hyundai and Kia opposing the various fee motions.  This case is Hyundai and Kia Fuel Economy Litigation, case number 2:13-ml-02424, in the U.S. District Court for the Central District of California.