The paper discusses several issues surrounding fee approvals including the methods for calculating fees, the factors courts consider, the nature of risks in class proceedings, and confidentiality. The paper presents two ideas for the reader’s consideration. First, courts have underemphasized the terms of the retainer agreement with the representative plaintiff in setting class counsel fees. These agreements should play a more central role. Second, there is too great a focus in fee approval hearings on reconciling the fees counsel receives by percentage recovery and through the use of a multiplier. The different approaches to calculating counsel fees are a factor in assessing the reasonableness of fees, but courts should avoid allowing reconciliation to dominate the analysis.
Baert et al. (Wed,) studied this question.