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Podhurst Wins Attorney Fee Dispute in NFL Concussion Case

June 21, 2019 | Posted in : Contingency Fees / POF, Fee Agreement, Fee Award, Fee Dispute, Practice Area: Class Action / Mass Tort / MDL

A recent Law 360 story by Kevin Penton, “Podhurst Wins Atty Fee Dispute in NFL Concussion MDL,” reports that a Pennsylvania federal magistrate judge has recommended that Podhurst Orseck receive 20% of a former NFL player's settlement award in multidistrict litigation over concussion injuries related to play on the field, rejecting the player's contention that he did not hire the firm to individually represent him.  U.S. Magistrate Judge David R. Strawbridge recommended that the Eastern District of Pennsylvania award Podhurst Orseck 20% of the unspecified amount that player Tim McKyer received as part of the settlement, finding that the former player cannot overcome language in a contingency fee agreement he signed that outlined how the firm would individually represent him, according to a report filed in the case.

McKyer asserted that he never understood that he had hired Podhurst Orseck to represent him in an individual capacity, "‘nor was it ever [his] intent' that the firm be [his] personal lawyer against the NFL," according to the order.  But Judge Strawbridge determined that the agreement's language, the actions by the firm to represent McKyer in the matter, and the results obtained through the settlement establish the deal's validity and enforceability, according to his order.  "We are convinced that McKyer's assertions, predicated upon his own ‘understanding' of the relationship he had with Podhurst and its personnel, does not invalidate the clear terms of the CFA signed in January 2012," the order reads.

The concussion settlement covers about 20,000 former NFL players and centers around a claims process that's intended to compensate players who can prove they're suffering from brain injuries related to head trauma suffered during their years on the field.  The deal was approved in 2015 and went into full effect in early 2017.  The common benefit fund was funded by a one-time payment of $112 million from the NFL and a 5% holdback fee on all approved payouts to players.  Roughly $40 million has been collected thus far from those holdbacks.

The case is In re: National Football League Players' Concussion Injury Litigation, case number 2:12-md-02323, in the U.S. District Court for the Eastern District of Pennsylvania.