Class Action Lawyers Fees

Supreme Court of California Approves Common Fund Fees

In a unanimous decision this morning, the California Supreme Court affirmed that attorneys’ fees in a class action may be calculated as a percentage of the common fund created by a settlement or judgment. Laffitte v. Robert Half Int’l, S222996 (August 11, 2016).  

In determining the appropriate percentage, the trial court may -- but is not required to – conduct a lodestar cross-check.  The trial court also has the discretion, in the first instance, to determine which fee calculation methodology to use (i.e. common fund or lodestar-multiplier) in any particular case.  The decision has a useful discussion of the history and criticisms of each method.