Opinion
Nos. 98 C 2178, 98 C 2550.
April 20, 2001
MINUTE ORDER
After a lengthy settlement approval process, it is time to allocate $4.25 million in attorneys' fees among class counsel in these cases. I have considered extensive briefing on this question, reviewed time records submitted in camera and heard oral argument. I decide as follows:
Class counsel agree that they shall bear their own costs out of whatever amount I award to each. This is reasonable, but I think there is one expense from which all class counsel benefitted. Dr. Adler has charged Miller Faucher $380,160 for his document review and report preparation. While an argument can be made, and was, that Adler's bill is excessive, I think it reasonable in the context of this case. Adler's analysis provided the backbone to counsel's assessment of these cases, and all class counsel relied on Adler when urging approval of the settlement. Intervenors and objectors attacked Adler's methodology, but no one provided another expert valuation of the claims in these cases (based on class counsels' theory of liability); thus, Adler was a critical piece of all plaintiffs' efforts. Adler is apparently awaiting $305,160 from Miller Faucher and I think this amount should come out of the award before it is allocated among counsel. This reduces the total amount that Daniel Harris, Howard Prossnitz and Francine Schwartz may receive and reflects my belief that they should bear some of the burden of Adler's fee.
Of the remaining $3,944,840, I award 41% to Miller Faucher; 37% to Daniel Harris; 11% to Howard Prossnitz; and 11% to Francine Schwartz.
This is based on my evaluation of the relative credit due for the result in these cases. I conclude that Miller Faucher and Daniel Harris led both the litigation and settlement efforts. Prossnitz and Schwartz provided valuable experience and analysis, but the relief to the class is more attributable to Miller Faucher and Harris. In other words, I do not agree with Prossnitz and Schwartz that this is a four-way lead counsel situation. I think there is no real dispute that Miller Faucher threw more lawyers and resources at this litigation than the other three. Miller Faucher and Harris's advocacy played a more significant role in my approval of the settlement. Moreover, I am convinced that it was the combination of Miller Faucher and Harris that brought the defendants to a fair and reasonable settlement. The award here is not compensation for earlier, unsuccessful cases. Thus, Prossnitz and Schwartz were crucial to this settlement, but I think not compensable to the degree they urge.
Defendants are ordered to pay $4,250,000 to class counsel as follows:
$1,922,544.40 to Miller Faucher ($1,617,384.40 + $305,160 for the remainder of Dr. Adler's bill)
$1,459,590.80 to Daniel Harris
$433,932.40 to Howard Prossnitz
$433,932.40 to Francine Schwartz