Health Republic Insurance Company v. United States

CourtUnited States Court of Federal Claims
DecidedMarch 3, 2026
Docket16-259C
StatusPublished

This text of Health Republic Insurance Company v. United States (Health Republic Insurance Company v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Health Republic Insurance Company v. United States, (uscfc 2026).

Opinion

IN THE UNITED STATES COURT OF FEDERAL CLAIMS ______________________________________ ) HEALTH REPUBLIC INSURANCE ) COMPANY, ) ) Plaintiff, ) No. 16-259 ) v. ) Filed: March 3, 2026 ) THE UNITED STATES, ) ) Defendant. ) ______________________________________ ) ) COMMON GROUND HEALTHCARE ) COOPERATIVE, ) ) Plaintiff, ) No. 17-877 ) v. ) Filed: March 3, 2026 ) THE UNITED STATES, ) ) Defendant. ) ______________________________________ )

OPINION AND ORDER

Before the Court is the Motion for Leave to File Motion for Attorneys’ Fees from Class

Counsel by objecting members of the Risk Corridors Non-Dispute Subclasses (“Objectors”). See

Health Republic ECF No. 265; Common Ground ECF No. 283. Objectors argue that they should

be permitted to file a fee request based on the substantial benefit they conferred on the Risk

Corridors Non-Dispute Subclasses (“Non-Dispute Subclasses”) by successfully advocating for the

reduction of Class Counsel’s fee request and for the payment of prejudgment interest, which

resulted in the return of over $100 million to the Non-Dispute Subclasses. Class Counsel opposes

the Motion, arguing that Objectors’ fee request is untimely under Rule 23(h), or alternatively Rule

54(d)(2), of the Rules of the United States Court of Federal Claims (“RCFC”); that any fee award for Objectors’ counsel must be assessed against the common fund, which no longer exists; and that

Objectors waived their right to seek fees by failing to raise their request in prior briefing related to

unjust enrichment arguments. For the reasons that follow, the Court GRANTS Objectors’ Motion

and directs the parties to continue briefing the merits of Objectors’ fee request.

I. BACKGROUND

The present motion comes on the heels of an already protracted litigation regarding

attorneys’ fees in these two class action cases. Indeed, the dispute over Class Counsel’s fees, and

associated prejudgment interest, has drawn on longer than the dispute over the Non-Dispute

Subclasses’ underlying claims. By way of summary, on July 23, 2020, the Court issued an Order

dividing the risk corridors class in each case into two subclasses—the Dispute Subclass and the

Non-Dispute Subclass—and directing the Clerk of Court to enter final judgment under RCFC

54(b) for the Non-Dispute Subclasses. See Order at 4–5, ECF No. 82. 1 These judgments

established the “common fund” in the instant cases. Boeing Co. v. Van Gemert, 444 U.S. 472, 479

(1980) (explaining that a common fund exists where “each member of a certified class has an

undisputed and mathematically ascertainable claim to part of a lump-sum judgment recovered on

his behalf”). In the same order granting judgment, the Court established a schedule “pursuant to

RCFC 23(h)” for briefing attorneys’ fees: “Subclass counsel” was ordered to file a motion for fees

by July 30, 2020, and any members of the Non-Dispute Subclasses had to “object or respond to

the motion” by August 20, 2020. Id. at 5. Both Class Counsel and Objectors abided by these

briefing deadlines.

1 Because all the briefing, including Objectors’ Motion for Leave to File Motion for Attorney’s Fees from Class Counsel, and all the previous orders pertaining to Class Counsel’s fee request in both cases is substantively the same, for ease of reference this opinion will cite only to the docket in Health Republic unless otherwise noted. 2 On September 16, 2021, the Court granted Class Counsel’s original motion for a fee award

of $184,848,671.67, or five percent of the Non-Dispute Subclasses’ combined judgments (i.e., the

common fund). See Op. & Order at 27–28, ECF No. 138. Objectors appealed that decision; and

on appeal, the Federal Circuit vacated the Court’s initial awards. Health Republic Ins. Co. v.

United States, 58 F.4th 1365, 1369–71 (Fed. Cir. 2023). On remand, the Court reduced the original

fee awards by half, awarding Class Counsel $92,424,335.84, or 2.5 percent of the common fund.

See Op. & Order at 29, ECF No. 224. Judgment was entered on the remand fee awards on October

18, 2024. See Rule 54(b) J., ECF No. 226 as modified by Corrected Rule 54(b) J., ECF No. 240.

Because Class Counsel executed on the original fee award judgments and collected the full five-

percent fee from the Claims Administrator, Class Counsel returned the difference in the fee

awards—which was approximately $92.4 million—to the Claims Administrator on December 2,

2024, for distribution to the Non-Dispute Subclasses. See Notice of Compliance, ECF No. 243.

The Court’s reduction of the fee awards on remand also raised the question of what amount

of interest, if any, should be paid to the Non-Dispute Subclasses on the difference in the original

and remand fee awards. Objectors did not raise the issue in their briefing related to Class Counsel’s

renewed fee request, even though they were notified in the early stages of the remand that Class

Counsel had executed on the original fee-award judgments and that it committed to repay “the

difference plus interest” if the Court ultimately reduced the awards. Class Counsel’s Opp’n to

Objectors’ Mot. for Acct. & Disc. at 12, ECF No. 202. However, on November 15, 2024, shortly

after the Court entered judgment on remand, Objectors moved to alter the judgments to add an

award of prejudgment interest. See Objectors’ Mot. to Am. J. to Include Prejudgment Interest,

ECF No. 234. On June 3, 2025, the Court granted that motion, subject to the application of Class

Counsel’s alternative proposed interest rate, and awarded total prejudgment interest of

3 $10,002,502.20 to the Non-Dispute Subclasses. See Op. & Order, ECF No. 253. In compliance

with that order, Class Counsel notified the Court on June 17, 2025, that it had transmitted the

prejudgment interest amount to the Claims Administrator and that distribution to the Non-Dispute

Subclasses was underway. See Notice of Transmission of Interest Payments to Claims

Administrator, ECF No. 256. Neither party appealed the Court’s attorneys’ fee decision on remand

or the decision awarding prejudgment interest.

On August 27, 2025, Class Counsel filed a Motion for Status Conference, advising that

Objectors had communicated with Class Counsel regarding Objectors’ forthcoming attorneys’ fee

request. See ECF No. 261. In the motion, Class Counsel stated that it believed Objectors’ fee

request was both “untimely and waived.” Id. at 3. Class Counsel requested that the parties meet

with the Court to “establish the correct procedures” for resolving Objectors’ fee request. Id. at 2–

3. The following day, Objectors responded to Class Counsel’s motion and Class Counsel filed its

reply. On September 2, 2025, the Court denied Class Counsel’s Motion for Status Conference and

ordered Objectors to file a motion for leave to file their attorneys’ fee request, which would allow

the Court to resolve Class Counsel’s threshold objections to the fee request with the benefit of full

briefing. See Order, ECF No. 264.

On September 4, 2025, Objectors filed such motion, attaching a copy of their Motion for

Attorneys’ Fees. See ECF Nos. 265, 265-1. Class Counsel filed a response on September 18,

2025, and Objectors filed a reply on September 25, 2025. See Class Counsel’s Opp’n to Mot. for

Leave, ECF No. 266; Objectors’ Reply, ECF No. 268. The motion is now fully briefed and ripe

for decision.

4 II. LEGAL STANDARDS

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Health Republic Insurance Company v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/health-republic-insurance-company-v-united-states-uscfc-2026.