Carrabba v. Randalls Food Markets, Inc.

191 F. Supp. 2d 815, 2002 U.S. Dist. LEXIS 4523, 2002 WL 407412
CourtDistrict Court, N.D. Texas
DecidedMarch 13, 2002
Docket4:96-cv-00651
StatusPublished
Cited by4 cases

This text of 191 F. Supp. 2d 815 (Carrabba v. Randalls Food Markets, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carrabba v. Randalls Food Markets, Inc., 191 F. Supp. 2d 815, 2002 U.S. Dist. LEXIS 4523, 2002 WL 407412 (N.D. Tex. 2002).

Opinion

MEMORANDUM OPINION and ORDER

MCBRYDE, District Judge.

Before the court for consideration and decision are the requests for relief made in the document filed November 9, 2001, titled “Class Counsel’s Amended Application for Common Fund Recovery.” For the reasons given below, the court has concluded no attorneys’ fees should be paid from the common fund, that the common fund should bear certain of the unreim-bursed expenses incurred by the attorneys for the class, and that the named plaintiffs/class representatives should not receive bonus, incentive, or expense reimbursement payments from the common fund.

I.

The Application

Attorneys for the plaintiffs in the above-captioned class action, Robert L. Wright *818 (“Wright”) and William G. Whitehall (“Whitehall”) of the Dallas, Texas, firm of Gardere Wynne Sewell LLP (formerly Gardere & Wynne, L.L.P.) (“Gardere Wynne”), and Thomas F. Dunn (“Dunn”) of the Arlington, Texas, firm of Dunn & Roark, P.C., (collectively “Attorneys”), seek, inter alia, expense reimbursement and additional compensation from the fund now in the registry of the court by reason of the recoveries of the plaintiff class members against defendant, Randalls Food Markets, Inc., (“Randalls”) through the April 26, 2000, final judgment in this action (“Fund”). The judgment awarded Attorneys, collectively, $3,078,810.40, plus post-judgment interest thereon, as attorneys’ fees, and the class plaintiffs, collectively, $10,546,859.42, plus post-judgment interest.

In August 2001, as appellate activity in this case was nearing an end, Randalls paid into the registry of the court $14,724,778.42, representing the total of the awards made by the April 26, 2000, judgment, plus post-judgment interest through August 13, 2001. On November 9, 2001, ten days after appellate activity was concluded, Attorneys filed a motion asking that they Be paid out of the registry fund their $3,078,810.40 fee award, plus the share of the post-judgment interest attributable to that amount. Pursuant to that request, in November 2001 $3,350,753.66 was disbursed by the Clerk to Attorneys.

Attorneys now are asking the court to order that they be paid out of Fund another $1,851,842.77 ($1,389,680.46 as additional attorneys’ fees and $462,162.31 as additional reimbursement for litigation expenses.) 1 They also are asking the court to order disbursed out of the Fund $525,000 to be paid to the thirty-five named plaintiffs, at the rate of $15,000 per plaintiff, as bonuses for having participated as the named plaintiffs/class representatives in this litigation.

The application is accompanied by an appendix containing: a declaration of Wright by which he identifies, and discusses, in a general way other items contained in the appendix; a list of thirty attorneys with the firm of Gardere Wynne who put billable hours in this case; three sets of billing statements and related listings showing services rendered and expenses incurred by Gardere Wynne, consisting of approximately 250 pages of itemizations of work done by lawyers with Gardere Wynne starting on July 1, 1996, and ending October 19, 2001; a summary, and listings (approximately 125 pages in length), of non-taxable expenses incurred by Gardere Wynne; billing statements of Dunn & Roark, with itemizations similar to the itemizations provided relative to work done by lawyers at Gardere Wynne, covering the time period May 28, 1996, through February 3, 2000; and, miscellaneous items and case authorities presented by Attorneys as having relevance to their application.

II.

History of the Litigation

This action was instituted on September 17, 1996, by the filing by Attorneys on behalf of four named plaintiffs of a complaint alleging that the plaintiffs were suing on behalf of themselves and a class of persons who were or had been employees of Randalls, or one of its predecessors, to recover under the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, 29 U.S.C. §§ 1001-1461, employee pension plan benefits and other re *819 lief. The claims arose from the alleged failure of the employer to pay the named plaintiffs and the class members the benefits to which they were entitled under the plan and applicable law when and after the plan was terminated in December 1992. Attorneys, after obtaining leave to do so, filed five amended complaints, the first on October 4, 1996, adding eight named plaintiffs, the second on November 5, 1996, adding six named plaintiffs, the third on May 8, 1997, adding thirteen named plaintiffs, the fourth on June 3, 1997, adding one named plaintiff, the fifth on June 30, 1997, adding two named plaintiffs, and the sixth on September 17, 1997, adding one more named plaintiff, for a total of thirty-five. From that point forward the case proceeded with thirty-five named plaintiffs, who, at the request of Attorneys, also were certified by the court as representatives of the class on whose behalf the action was brought.

On December 6, 1996, January 30, 1997, February 25, 1997, and April 25, 1997, respectively, the court granted joint requests of the parties for extensions of time for the filing of a motion for class certification. The motion was filed May 7, 1997. On May 23, 1997, June 23, 1997, July 15, 1997, and July 30, 1997, respectively, the court granted joint requests for extensions of time for the filing of a response to the motion. Defendants 2 filed their memorandum in opposition to class certification on August 22, 1997. On June 16, 1998, the court certified the class for the liability phase of the case, and ordered notification to the class members.

In the meantime, on December 30, 1997, the court ruled on plaintiffs’ motion for partial summary judgment, and the motion and supplemental motion of defendants for partial summary judgment. The ruling was in favor of defendants as to one of the elements of the contention of the defendants that the plan was a “top hat” plan; and, the court ruled in favor of the defendants as to certain claims made by plaintiffs in their sixth amended complaint.

The foregoing overview of the first two years of the pendency of this litigation leads to the October 26, 1998, non-jury trial on the issue of whether the pension plan in question was exempt from ERISA requirements, such as vesting, funding, trusteeship, reporting, and disclosure, by virtue of being a “top hat” plan. The trial evidence and outcome are the subjects of the court’s February 18, 1999, memorandum opinion and order, published as Carrabba v. Randalls Food Markets, Inc., 38 F.Supp.2d 468 (N.D.Tex.1999). The history of the damage phase of this case, through entry of the final judgment, is discussed in the memorandum opinion and order the court signed April 11, 2000, and revised and supplemented April 26, 2000, published as Carrabba v. Randalls Food Markets, Inc., 145 F.Supp.2d 763 (N.D.Tex.2000).

Cross-appeals were taken by the parties to the United States Court of Appeals for the Fifth Circuit, which affirmed the judgment of the trial court on May 22, 2001.

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Bluebook (online)
191 F. Supp. 2d 815, 2002 U.S. Dist. LEXIS 4523, 2002 WL 407412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carrabba-v-randalls-food-markets-inc-txnd-2002.