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Category: Lodestar Multiplier

Attorneys Earn $71M in Fees in $1B Surfside Settlement

August 29, 2022

A recent Law 360 story by Carolina Bolado, “Attorneys Get $71M in Fees For $1B Surfside Settlement Work” reports that the judge overseeing the consolidated litigation over the collapse of the Champlain Towers South condominium in Surfside, Florida, approved about $71 million in attorney fees for class counsel who secured a global settlement of more than $1 billion for the victims.  In a hearing, Miami-Dade Circuit Judge Michael Hanzman said he would award $65 million in attorney fees for work by counsel in bringing the case to a close about a year after the collapse of the beachfront condominium tower on June 24, which killed 98 people.

He added $6.5 million in fees for work attorneys have performed in recent weeks guiding victims' families through the now-completed claims process.  Coupled with the $5.65 million Judge Hanzman awarded to court-appointed receiver Michael Goldberg and the three firms that represented him — Akerman LLP, Berger Singerman LLP and Boyle Leonard & Anderson PA — for their work handling the receivership of the condominium association, the total fees amount to about $77 million.

The judge noted that amount is between 6% and 7% of the total $1.2 billion recovery obtained for victims of the collapse, far less than what victims would have had to pay had they retained counsel and litigated claims on their own.  Judge Hanzman commended the attorneys, who worked the complicated case "in a glass house and under extreme pressure."  He said they signed on at the beginning of the case, when expected recovery was $200 million to $300 million and the court had warned them not to expect any fees.

"This case could've been a disaster for them," the judge said.  "There was so much potential to go off the rails.  They could've been stuck in a decade-long slog with no compensation."  Class counsel had requested a lodestar fee amount of about $22 million, multiplied by 4.5 to get to just over $100 million.  The judge agreed a multiplier was warranted, given the extraordinary result, but he was unwilling to go that high.

At the hearing, co-lead counsel Harley Tropin of Kozyak Tropin & Throckmorton, told Judge Hanzman that "whatever you award us is good with us."  "We had one goal: Recover as much money as we could," Tropin said.  "I hope you think we did a good job. Whatever you award us, we're good."

Following the hearing, Tropin and co-lead counsel Rachel Furst of Grossman Roth Yaffa Cohen PA said in a statement that they were "grateful to have had the opportunity to represent the victims and serve the court."  "We are grateful for the recognition of our work in the form of this fee award and for having this brought this case to a conclusion for the victims," they said.

The funds going out to the victims will come from the $1 billion from a global settlement with a number of parties, insurance proceeds from the condominium association's policies, and $120 million from the sale of the property to Dubai, United Arab Emirates-based buyer Damac Properties PJSC.

Attorneys Earn $71M in Fees in $1B Surfside Settlement

August 29, 2022

A recent Law 360 story by Carolina Bolado, “Attorneys Get $71M in Fees For $1B Surfside Settlement Work” reports that the judge overseeing the consolidated litigation over the collapse of the Champlain Towers South condominium in Surfside, Florida, approved about $71 million in attorney fees for class counsel who secured a global settlement of more than $1 billion for the victims.  In a hearing, Miami-Dade Circuit Judge Michael Hanzman said he would award $65 million in attorney fees for work by counsel in bringing the case to a close about a year after the collapse of the beachfront condominium tower on June 24, which killed 98 people.

He added $6.5 million in fees for work attorneys have performed in recent weeks guiding victims' families through the now-completed claims process.  Coupled with the $5.65 million Judge Hanzman awarded to court-appointed receiver Michael Goldberg and the three firms that represented him — Akerman LLP, Berger Singerman LLP and Boyle Leonard & Anderson PA — for their work handling the receivership of the condominium association, the total fees amount to about $77 million.

The judge noted that amount is between 6% and 7% of the total $1.2 billion recovery obtained for victims of the collapse, far less than what victims would have had to pay had they retained counsel and litigated claims on their own.  Judge Hanzman commended the attorneys, who worked the complicated case "in a glass house and under extreme pressure."  He said they signed on at the beginning of the case, when expected recovery was $200 million to $300 million and the court had warned them not to expect any fees.

"This case could've been a disaster for them," the judge said.  "There was so much potential to go off the rails.  They could've been stuck in a decade-long slog with no compensation."  Class counsel had requested a lodestar fee amount of about $22 million, multiplied by 4.5 to get to just over $100 million.  The judge agreed a multiplier was warranted, given the extraordinary result, but he was unwilling to go that high.

At the hearing, co-lead counsel Harley Tropin of Kozyak Tropin & Throckmorton, told Judge Hanzman that "whatever you award us is good with us."  "We had one goal: Recover as much money as we could," Tropin said.  "I hope you think we did a good job. Whatever you award us, we're good."

Following the hearing, Tropin and co-lead counsel Rachel Furst of Grossman Roth Yaffa Cohen PA said in a statement that they were "grateful to have had the opportunity to represent the victims and serve the court."  "We are grateful for the recognition of our work in the form of this fee award and for having this brought this case to a conclusion for the victims," they said.

The funds going out to the victims will come from the $1 billion from a global settlement with a number of parties, insurance proceeds from the condominium association's policies, and $120 million from the sale of the property to Dubai, United Arab Emirates-based buyer Damac Properties PJSC.

Chancery Approves $75M Fee Award in Williams Merger Dispute

August 29, 2022

A recent Law 360 story by Jeff Montgomery, “Chancery Oks $75M Cravath Fee in Williams Merger Dispute” reports that Cravath Swaine & Moore LLP nailed a nearly $75 million fee after a Delaware vice chancellor upheld its 15% contingent pay agreement with The Williams Cos. during much of a long battle with Energy Transfer LP and its affiliates over a $410 million deal-termination damage claim.

Vice Chancellor Sam Glasscock III also upheld a provision of the agreement that shifted Cravath's fees to Energy Transfer — the losing side of a $410 million battle with Williams over a termination fee triggered when Williams abandoned an earlier deal with one of its affiliates to pursue an eventually doomed, $38 billion Energy Transfer merger.

Energy Transfer, already required to pay Williams' $410 million break fee, fought the reasonableness of Cravath's fee, the 15% contingent arrangement as well as the court's decision to allow quarterly compounding interest for the fee, including a multiyear span while the case was stayed.  According to the decision and a transcript of earlier arguments on the dispute, Cravath's average or "lodestar" rate was $47.1 million for the same hours, compared with $74.8 million under the contingent fee arrangement.

"It is worth pointing out that these sophisticated parties surely were aware that post-merger-agreement litigation, seeking a break fee, could likely include representation on a contingent basis." the vice chancellor wrote in a decision that upheld the Williams side on all points.  Energy Transfer "had every opportunity, therefore, to contract against use of a contingent fee to determine the amount of fees shifted, if they so desired. This they failed to do," the vice chancellor wrote.

"The merger agreement contains no limitation on what kinds of attorneys' fees and expenses may be shifted to the losing party, other than a requirement, which is already implied under Delaware law, that the shifted fees and expenses must be 'reasonable,'" the vice chancellor wrote.  Williams had argued that a new general counsel secured the contingent agreement with Cravath in mid-2017, after Delaware's Supreme Court let stand the vice chancellor's finding that failure of a required tax-treatment for the $1.38 billion merger allowed Energy Transfer to walk away.

Energy Transfer argued that interest should have been suspended during a two-year period between 2019 and 2021 when a Williams' discovery vendor's error brought litigation to a halt. They also argued that litigation time over the interest rate and fees should likewise not count.

The decision also provided for interest at 3.5%, compounded quarterly, with the court observing other decisions that found compound interest "the standard form of interest in the financial market."  In all, according to a court brief filed, Cravath earned $4,358,372.70 prior to the start of the contingent fee terms, $4 million under a contractual fixed fee and $74,846,161 under the contingent fee.

Attorneys Seek $13M in Fees in Pork Antitrust Settlement

August 22, 2022

A recent Law 360 story by PJ D'’Annunzio, “Attys Seek $13M Payout For Pork Antitrust Deal With Eateries reports that attorneys representing commercial pork buyers asked for $13.2 million in fees for their role in negotiating a $42 million settlement between a group of restaurants and Smithfield Foods in multidistrict litigation over an alleged meat industry scheme to inflate prices.  In a memorandum, a class of commercial and institutional indirect pork purchasers urged the court to award fees using a "percentage of the funds" calculation, in this case, 31% of the gross settlement proceeds.

"The $42 million settlement before the court is the result of extensive work done by counsel for the CIIPPs on a contingent basis," the memorandum said.  "Counsel has worked for over four years and have invested thousands of hours to pursue the CIIPP claims.  Counsel for the CIIPPs request an interim award of attorneys' fees for the work done to achieve this settlement."  Minnesota U.S. District Judge John R. Tunheim preliminarily approved the $42 million settlement between Smithfield and the pork purchasers in an April order.

In addition to the money, Smithfield agreed to cooperate in prosecuting claims against the remaining defendants, which include big names like Tyson Foods and Hormel Foods Corp., in the large-scale litigation.  The purchasers' memorandum said four years of litigation resulted in roughly 16,800 attorney hours and 2,560 hours for legal assistants and other professionals.

"Given the excellent results achieved, the complexity of the claims and defenses, the real risk of nonrecovery, the formidable defense teams, the delay in receipt of payment, and the substantial experience and skill of counsel, the requested multiplier on the lodestar and the resulting fee is reasonable compensation for the work done by counsel for the CIIPPs," the purchasers said.  Additionally, the purchasers asked for an award of $7,500 to each plaintiff representative.

NALFA Releases 2021 Litigation Hourly Rate Survey & Report

July 19, 2022

Every year, NALFA conducts an hourly rate survey of civil litigation in the U.S.   Today, NALFA released the results from its 2021 hourly rate survey.  The survey results, published in The 2021 Litigation Hourly Rate Survey & Report, shows billing rate data on the very factors that correlate directly to hourly rates in litigation:

City / Geography
Years of Litigation Experience / Seniority
Position / Title
Practice Area / Complexity of Case
Law Firm / Law Office Size

This empirical survey and report provides micro and macro data of current hourly rate ranges for both defense and plaintiffs’ litigators, at various experience levels, from large law firms to solo shops, in regular and complex litigation, and in the nation’s largest markets.  This data-intensive survey contains hundreds of data sets and thousands of data points covering all relevant billing rate categories and variables.  This is the nation’s largest and most comprehensive survey or study on hourly billing rates in litigation.

This is the second year NALFA has conducted this survey on billing rates.  The 2021 Litigation Hourly Rate Survey & Report contains new cities, additional categories, and more accurate variables.  These updated features allow us to capture new and more precise billing rate data.  Through our propriety email database, NALFA surveyed thousands of litigators from across the U.S.  Over 8,400 qualified litigators fully participated in this hourly rate survey.  This data-rich survey was designed to aid litigators in proving their lodestar rates in court and comparing their rates to their litigation peers.

The 2021 Litigation Hourly Rate Survey & Report is now available for purchase.  For more on this survey, email NALFA Executive Director Terry Jesse at terry@thenalfa.org or call us at (312) 907-7275.