Fee Dispute Hotline
(312) 907-7275

Assisting with High-Stakes Attorney Fee Disputes

The NALFA

News Blog

Judge Wants Closer Look at Attorney Fees in Wage Action

September 15, 2020 | Posted in : Billing Record / Entries, Contingency Fees / POF, Fee Request, Hourly Billing, Hours Billled, Settlement Data / Terms

A recent Law 360 story by Anne Cullen, “Judge Clears $3.75M Wage Deal But Flags Atty Fee Bid,” reports that workers for the retail merchandise service TNG GP snagged initial approval of a $3.75 million deal settling overtime and wage claims, but the California federal judge who signed off on the pact indicated she was uneasy about their legal team's bid for a third of the pot.  U.S District Judge Kimberly J. Mueller noted that the fee request by Cohelan Khoury & Singer, Gaines & Gaines APLC and two solo practitioners exceeds the circuit court's benchmark of 25%.  While she said that does not sink the initial approval, Judge Mueller warned that she would take a closer look at their timesheets before giving the final green light.

"The court does not deny the motion on this basis at this time but notes that the proposed upward departure from this benchmark will require full support at the final approval phase to be approved," she said.  The settlement also contains a "clear sailing" provision, which bars TNG from challenging the lawyers' fee bid, and Judge Mueller said she was not sold on that, either.  "Such a clear sailing provision raises a red flag as its benefit accrues primarily to counsel as opposed to the class," she said.

Judge Mueller told class counsel that she would require detailed descriptions of tasks completed, hours logged on each task, who performed the task, and other details before she signs off on the fee request at the final approval stage.