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$50M in Fees/Costs at Stake in NCAA Antitrust Case

October 31, 2014 | Posted in : Billing Practices, Expenses / Costs, Fee Award Factors, Fee Dispute, Fee Request, Hourly Rates, Lodestar

A recent CBSSports.com story, “O’Bannon Lawyers Seek $50.2 Million from NCAA in Revised Costs,” reports that lawyers for the Ed O’Bannon plaintiffs are now seeking $50.2 million in attorney fees from the NCAA, according to a revised motion for fees (pdf) in Oakland. 

U.S. District Judge Claudia Wilken ruled on Aug. 8 that the NCAA’s restrictions on what major college football and men’s basketball players can receive “unreasonably restrain trade” and violate antitrust laws.  The NCAA is appealing the decision, which included a ruling by Wilken that the plaintiffs “shall recover their costs from the NCAA.”

Initially, the O’Bannon lawyers filed a motion in August seeking $52.4 million.  Both the O’Bannon and NCAA lawyers said then more time was needed for plaintiffs’ lawyers to produce accurate numbers for attorney fees and expenses.

In the revised filing, the O’Bannon lawyers seek $44,972,406.95 in attorneys’ fees and $5,277,209.29 in recoverable costs and expenses.  They also asked Wilken to consider “an upward adjustment” of the final awarded amount because the litigation “carried an exceptional risk of defeat and required a tremendous amount of time and labor that in turn precluded other employment.”  The filing said the figures do not include the 2013 mediation and settlement of claims against Electronic Arts and Collegiate Licensing Company.

Lawyers for the O’Bannon plaintiffs wrote they survived 10 motions to dismiss, 76 deposition, “a slew” of appeal attempt and “numerous pre-trial motions by the NCAA to stave off trial,” and the three-week bench trial.  “The complexities of, and risks associated with, this litigation defy comparison to most other contingent antitrust matters in recent history,” the lawyers wrote.

According to court filings, lead attorney Michael Hausfeld’s firm oversaw 31 law firms in the case.  The previous motion and fees and costs in August said Hausfeld firm oversaw 43 firms.  Hausfeld’s firm, Hausfeld LLP, reported having spent 27,335 hours on the case since 2009 for a value of $15,573,319.  The August motion claimed Hausfeld LLP worked 29,874 hours that totaled $17,078,140 in billing.

Hausfeld wrote his firm has since removed “nearly all of the time that was solely dedicated” to areas such as press and preparation of plaintiffs for media interviews, prosecution of individual damages claims, class certification of the damages class, and preparation for jury instruction.  “This reduced our overall lodestar by over 2,000 hours and $2 million in fees,” Hausfeld wrote.

The historical hourly rates sought by O’Bannon lawyers rage from $985 for senior partners to $175 for the most junior associate.  The filing said these rates are comparable to what the NCAA paid its lawyers in defending the lawsuit.  The O’Bannon lawyers cited a 2006 NCAA antitrust lawsuit in which the NCAA attorney Gregory Cutner sought his then-current rate of $540 per hour and was awarded his historical rate of $485 per hour.

The NCAA has until Dec. 23 to file a response.  The NCAA declined to comment on the O’Bannon plaintiffs’ filing with the legal costs.  NALFA also reported on this case, in “Lawyers Seek $52.4M in Ed O’Bannon NCAA Antitrust Case.”