In Re Black Farmers Discrimination Litigation

953 F. Supp. 2d 82, 2013 WL 3480346, 2013 U.S. Dist. LEXIS 96932
District Court, District of Columbia·Decided July 11, 2013·No. Misc. No. 2008-0511·Published·Cited by 10 cases

Opinion

OPINION

PAUL L. FRIEDMAN, District Judge.

This matter is before the Court on class counsel’s updated motion for an award of attorneys’ fees and expenses. The Settlement Agreement that was approved by the Court following a Fairness Hearing provides that class counsel will receive an award equal to at least 4.1% but no more than 7.4% of the common fund that has been established for the payment of successful claims in this action. Class counsel, who have devoted an immense number of hours to this case while incurring many millions of dollars in unreimbursed out-of-pocket expenses, have moved for an award set at 7.4% of the fund, or $90,835,000. Having carefully considered the matter, and for the reasons explained below, the Court will grant class counsel’s motion for an award of attorneys’ fees and expenses set at 7.4% of the common fund. Pursuant to the Settlement Agreement, class counsel will receive their fee award at the same time that successful claimants are paid on their claims. 1

I. BACKGROUND

On April 14, 1999, this Court entered a Consent Decree in Pigford v. Glickman, Civil Action No. 97-1978, establishing a non-judicial, claims resolution process for a class.of African-American farmers who alleged that they had been discriminated *85 against on the basis of their race by the United States Department of Agriculture (“USDA”) in the provision of farm loans and subsidies and other federal agricultural benefits, and who further alleged that complaints they lodged about this discrimination were ignored by the USDA. See Pigford v. Glickman, 185 F.R.D. 82 (D.D.C.1999); see also In re Black Farmers Discr. Litig., 856 F.Supp.2d 1, 7-11 (D.D.C.2011) (recounting history of the Pigford litigation).

The Pigford Consent Decree represented an important step toward ameliorating a long legacy of discrimination acknowledged by the USDA itself. But tens of thousands of prospective claimants weré not permitted to participate in the claims resolution process that was set in motion by the Consent Decree because their claim forms were not timely filed. Under the terms of the Consent Decree, any claim form that was not postmarked within 180 days of the entry of the Consent Decree could not be considered on the merits unless the claimant petitioned for permission to file a late claim and demonstrated thát “his failure to submit a timely claim was due to extraordinary circumstances beyond his control.” Pigford v. Glickman, Civil Action No. 97-1978, Consent Decree ¶ 5(g) (D.D.C. Apr. 14, 1999). More than 61,000 individuals petitioned to submit untimely claim packages. Ultimately, only 4% of these “late filer's” were deemed to have shown “extraordinary circumstances” beyond the individual’s control and had their claims considered on the merits. The remaining “late filers” — over 58,000 in all — -were unable to pursue relief under the Pigford Consent Decree. See In re Black Farmers Discr. Litig., 856 F.Supp.2d at 11. Moreover, thousands of additional would-be claimants (the so-called “late-late filers”) submitted .petitions to file untimely claims after the, deadline for such petitions, and they, too, were denied the opportunity to have their claims adjudicated under the Pigford Consent Decree. Id.

In 2008, after years of lobbying and publicity efforts by advocates for late-filing Pigford claimants, Congress enacted Section 14012 of the Food, Conservation, and Energy Act of 2008 (the “Farm Bill”), which provided that “[a]ny Pigford claimant who has not previously obtained a determination on the merits of a Pigford claim may, in a civil action brought in the United States District Court for the District of Columbia, obtain that determination.” Pub.L. No. 110-246, § 14012(b), 122 Stat. 1651 (2008). Section 14012 authorized forms of adjudication that were “similar, but not identical,” to the two-track adjudication system established under the Pigford Consent Decree. In re Black Farmers Discr. Litig., 856 F.Supp.2d at 12. Among the most noteworthy differences, Section 14012 made no provision for a nonjudicial claims resolution process but instead directed that “the court shall decide the case” of each individual claimant. Farm Bill § 14012(f)(1)(B). 2 In addition, the Farm Bill appropriated only $100 million for the payment of successful claims, id. § 14012(c)(2) — far too little to satisfy the number of successful claims that could reasonably be anticipated, although the statute contemplated the possibility of future additional appropriations. See id. § 14012(0(2), (j).

After the enactment of the 2008 Farm Bill, numerous complaints were filed in this Court under Section 14012 on behalf of thousands of plaintiffs. All of the Section 14012 actions were consolidated in *86 August of 2008 into this miscellaneous case. The case was then stayed to enable-settlement negotiations to proceed, except for the limited purpose of allowing the parties to brief the question of whether the case should be certified as a class action. See Order (Aug. 8, 2008); Minute Order (Oct. 1, 2008); Order (Dec. 23, 2008). While briefing on class certification was underway, the parties continued their settlement discussions. In February 2010, they reached a settlement agreement that delineated a comprehensive, non-judicial claims resolution process for plaintiffs-seeking recovery under Section 14012 of the Farm Bill. See Defendant’s Unopposed Motion to Withdraw His Motion to Certify a Rule 23(b)(1) Class, ¶ 3 [Dkt. No. 137).

In late 2010, Congress appropriated an additional $1.15 billion to carry out the terms of the Settlement Agreement, but conditioned this appropriation of additional funds on the Court’s approval of that agreement, including any modifications agreed to by the parties and accepted by the Court. In re Black Farmers Discr. Litig., 856 F.Supp.2d at 13, 39. This conditional commitment is found in Section 201 of the Claims Resolution Act (“CRA”). See Pub.L. No. 111-291, § 201(b), 124 Stat. 3064 (2010). To promote the integrity of the claims process it endorsed in the'CRA, Congress imposed additional requirements on the attorneys and the prospective appointed neutrals as they carried out the terms of the Settlement Agreement; it also mandated certain government audits and oversight reports. Id §§ 201(g), (h).

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In Re Black Farmers Discrimination Litigation, 953 F. Supp. 2d 82, 2013 WL 3480346, 2013 U.S. Dist. LEXIS 96932 (D.D.C. 2013).

953 F. Supp. 2d 82 (In Re Black Farmers Discrimination Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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