Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

Class Counsel Garners $74 Million Fees/Costs In JP Morgan Chase Mortgage-Backed Securities Settlement And Eleventh Circuit Decision Holds Percentage-Of-Fund Analysis Applies To Claims

calattorneysfees.com | December 7, 2015

Class Counsel Asked For $100.8 Million In Fees/Expenses But Were Awarded “Only” $74 Million

On December 4, 2015, a New York federal district judge awarded class counsel in the JP Morgan Chase mortgage-backed securities class action about $74 million in fees and costs based on a $388 million settlement. This was less than the $100.8 million in fees and expenses requested by class counsel.

Eleventh Circuit Applies Percentage-of-Fund Analysis to Claims-Made Class Action Settlements Based On Potential Value of Settlement—Ninth Circuit May Not Agree With This Approach

In Poerther v. The Gillette Co., 2015 WL 4319896 at *1, *4 (11th Cir. 2015), the Eleventh Circuit found that the percentage-of-fund approach should be applied in reviewing the propriety of fees to be awarded class counsel in claims-made class action settlements, eschewing the perspective that the fees should be scrutinized against the actual payouts to class members. (It especially focused on the fact that injunctive and other negotiated relief may have real value.) A recent Florida district court decision has embraced Poerther. (Marty v. Anheuser-Busch Companies, LLC, No. 13-cv-23656-JJO (S.D. Fla. Oct. 15, 2015) [Doc. No. 165].) So, what is the Ninth Circuit’s position on this issue? Likely, it does look at actual payouts to both class counsel and class members as a factor, coupled with review of potentially suspect clear sailing and reversion settlement clauses. (See In re HP Inkjet Printer Litig., 716 F.3d 1173, 1178 (9th Cir. 2013) [“Where both the class and its attorneys are paid in cash ... [t]he district court can assess the relative value of the attorneys’ fees and the class relief simply by comparing the amount of cash paid to the attorneys with the amount of cash paid to the class.”]; see also In re Baby Prods. Antitrust Litig., 708 F.3d 163, 170 (3d Cir. 2013) [“[C]ourts need to consider the level of direct benefit provided to the class in calculating attorneys’ fees.”]; Pearson v. NBTY, Inc., 772 F.3d at 778, 781 (7th Cir. 2014) (Posner, C.J.) [quoting Redman v. RadioShack Corp., 768 F.3d 622, 630 (7th Cir. 2014), the “ratio that is relevant . . . is the ratio of (1) the fee to (2) the fee plus what the class members received.”].)


Nancy Duffy McCarron, CBN 164780
Attorney, Real Estate Broker, BBB Arbitrator, CA Notary Public
Certified Forensic Loan Auditor, Property Manager


Back to Letters from the Editor Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352


Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo



Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:

International Bloomberg Securitization Audits


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package