A recent The Recorder story, “Judge Awards Fees in Apple Warranty Litigation,” reports that lawyers who sued Apple Inc. for denying warranty coverage will receive $13.25 million in attorney fees, a federal judge ordered Monday, rejecting Apple’s arguments that they deserve far less.  Plaintiffs’ counsel had asked for $15.9 million, or 30 percent of the $53 million settlement.  But on Monday, U.S. District Judge Richard Seeborg awarded the standard 25 percent used as a benchmark by the Ninth Circuit. 

Apple Inc. called the original fee request breathtaking, and argued plaintiffs’ lawyers shouldn’t receive more than $8.78 million.  “Apple will pay the same amount into the fund no matter how much plaintiffs are awarded but cannot sit on the sidelines and tacitly endorse such an excessive request.” Wrote Morrison & Foerster partner Penelope Preovolos and George Harris in Apple’s brief.  “Apple prefer that the settlement fund be spent on compensating the class members, not creating a windfall to the lawyers.”

The case was filed on behalf of iPhone and iPod purchasers alleging they were improperly denied warranty coverage because of what plaintiffs contended was a faulty liquid submersion indicator.  The two sides reached a settlement in April of last year, before the filing of any dispositive motions and just five depositions—facts Apple’s lawyers pointed to in arguing for lower fees.

But plaintiff lawyers said the settlement is extraordinary and deserving a five percent bump up from the 25 percent.  Class members will receive an average of $211 per device—slightly more than the average value of replacing the devices.  “You don’t see that very often,” said Jeffrey Fazio of Fazio Micheletti in San Ramon, one of the plaintiffs’ lawyers in the case.  “We essentially recovered more than what they could have recovered with 100 percent victory at trial.”