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Fee Dispute Develops in Microsoft Class Action

July 8, 2010 | Posted in : Contingency Fees / POF, Fee Agreement, Fee Award, Fee Dispute, Fee Dispute Litigation / ADR

A recent law.com story, “Fee Fight Breaks Out Over Multimillion-Dollar Microsoft Case” reports that attorneys representing 23 states involved in the class action against Microsoft Corp. have filed a lawsuit over attorney fees against Roxanne Colin, the Iowa lawyer who spread-headed a $179.5 million settlement with the software company.  Colin of Des Moines negotiated the 2007 settlement that included $75 million in attorney fees that she split with attorney Richard Hagstrom and the Zelle Hoffmann law firm in Minneapolis.

The attorney fee lawsuit claims that the 23 attorneys provided advice, pleadings, and participation and prosecution in the class action case in their states, and in the Iowa case against Microsoft.  The 23 attorneys formed the group called the Microsoft Litigation Consortium and signed an agreement with Colin that called the consortium to receive 20 percent of attorney fees awarded in the case.  The lawsuit said disputes were to be resolved through arbitration.  “The attorney fees awarded to (Colin) at the conclusion of the litigation were not shared…in violation of the agreement,” the suit states.  Colin has refused to comply with the agreement and that “on multiple occasions (the consortium) has requested that (Colin) comply with the…agreement and arbitrate the dispute regarding fees.”