In Re San Juan Dupont Plaza Hotel Fire Litigation

50 F. Supp. 2d 100, 1999 U.S. Dist. LEXIS 8064, 1999 WL 345976
CourtDistrict Court, D. Puerto Rico
DecidedMay 16, 1999
DocketMDL-721
StatusPublished

This text of 50 F. Supp. 2d 100 (In Re San Juan Dupont Plaza Hotel Fire Litigation) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re San Juan Dupont Plaza Hotel Fire Litigation, 50 F. Supp. 2d 100, 1999 U.S. Dist. LEXIS 8064, 1999 WL 345976 (prd 1999).

Opinion

50 F.Supp.2d 100 (1999)

In re SAN JUAN DUPONT PLAZA HOTEL FIRE LITIGATION.

No. MDL-721.

United States District Court, D. Puerto Rico.

May 16, 1999.

Monita F. Sterling, PSC Liaison, Plaintiffs' Steering Committee, New Orleans, LA, Peter Berkowitz, San Juan, P.R., Jorge M. Suro-Ballester, Suro Ballester, San Juan, PR, Jorge Ortiz-Brunet, Ortiz-Toro & Ortiz-Brunet, Hato Rey, PR, Francisco M. Troncoso, Troncoso & Becker, San Juan, PR, Alvaro Calderón, Jr., Hato Rey, PR, Wendell H. Gauthier, Gauthier, Downing, LaBarre, Beiser & Dean, *101 Metairie, LA, Joé E. Fernández-Seín, Nachman, Santiago, et al, Santurce, PR, William S. Kemp, Harrison, Kemp & Jones, Las Vegas, NV, Stanley M. Chesley, Waite, Schneider, et al., Cincinnati, OH, John J. Cummings III, Cummings, Cummings & Dudenhefer, New Orleans, LA, David C. Indiano, Indiano, Williams, et al., Hato Rey, PR, for Steering Committee Service, plaintiffs.

Jorge Gonzĺez Lugo, Cordero Gonzalez & Assoc., Srl, Arecibo, Pr, Harry Anduze Montaño, San Juan, PR, Renato Barrios, Gervitz & Barrios, Hato Rey, PR, Alfredo Carlo Toro, Boquerón, PR, Laurence S. Berman, Levin, Fishbein, et al., Philadelphia, PA, Douglas G. Brown, Newport Beach, CA, Roberto Buso Aboy, Hato Rey, PR, E. Alvarez de Barbosa, Bayamón, PR, Isabel, Picó Vidal, San Juan, PR, Gonzalo J. Barreras Varona, Delgado C. & Barreras V., Hato Rey, PR, James E. Beasley, Shanin Specter, Beasley, Beasley & Erbstein, Philadelphia, PA, Richard A. Bieder, Koskoff, Koskoff & Bieder, Bridgeport, CT, Richard E. Brown, Brown, Fabbro & Scarlett, San Francisco, CA, Arnaldo Capote, Capote Hernandez Labat Planas, Panama City, FL, Susan Courtney Chambers, New York City, Luis E. Colón Ramery, Ponce, PR, Anthony J. Demarco, Jr., Brooklyn, NY, José A. Feliciano, Hato Rey, PR, David Godreau, Latimer, Biaggi, Rachid & Godreau, San Juan, PR, Romualdo González, Braden Gonzalez & Assoc., New Orleans, LA, Harrison J. Gordon, Gordon & Gordon, West Orange, NJ, Eugenio Santoni, Jimenez & Santoni, San Juan, PR, Orlando Fernández, Garcia & Fernandez, Hato Rey, PR, Carlos Colón Marchand, Hato Rey, PR, José De La Cruz Skerrett, San Juan, PR, Anthony J. Genovesi, Brooklyn, NY, José González González, Ramos & Gonzalez, Santurce, PR, Víctor R. González Mangual, Santurce, PR, Mark Hutton, Hutton & Hutton, Wichita, KS, Dale G. Larrimore, Larrimore, Farnish & Anderson, LLP, Philadelphia, PA, Miguel Limeres Grau, Parra, Del Valle, Frau & Limeres, Ponce, PR, Federico Lora López, San Juan, PR, Samuel Maduro Classen, Santurce, PR, Luis R. Mellado González, San Juan, Pr, José A. Pagán Nieves, San Juan, PR, Antonio Moreda Toledo, Moreda, Moreda & Arrillaga, San Juan, PR, Juan Thomas Peñagarícano, San Juan, PR, Scott Kalisch, Kalisch & Lyons, P.A., Coral Gables, FL, Steven Lausell, Jimenez, Graffam & Lausell, San Juan, PR, Alberto E. Lugo Janer, Windemere, FL, Fernando Gallardo, Woods & Woods, Hato Rey, PR, David G. Miller, Gair Gair Conason Steigman & Mac, New York City, Meryl Schwartz, Office of Aaron J. Broder, New York City, Gabriel I. Peñagarícano, San Juan, PR, Melvin A. Simon, Berman & Sable, Hartford, CT, Craig A. Strayer, Condon, Strayer & Shouse, P.C., Kansas City, MO, Guerry R. Thornton, Jr., Thornton & Leff, Atlanta, GA, Raphael Yulian Pomar, Hato Rey, PR, Virginia Zequeira Brinsfield, San Juan, PR, Marvin I. Barish, Philadelphia, PA, Stephen Levine, Levine & Gordet, Brooklyn, NY, Robert Perkins, Parkville, MO, David W. Druker, Schneider, Kleinick, Weitz Damashek & Shoot, New York City, Irving Singer, Singer, Block & Matles, P.C., Brooklyn, NY, Harold V. Sullivan II, Torrance, CA, Leonard Weinstock, Garbarini & Scher, P.C., New York City, Dennis E. Curtis, Judith Resnik, New Haven, CT, Manuel E. Andreu García, Andreu-García & Andreu-García, San Juan, P.R., for independently retained plaintiffs.

ORDER NO. 706 IN THE MATTER OF FINAL PAYMENT OF ATTORNEY FEES

ACOSTA, District Judge.

On December 18, 1998, the Court issued its final Order of distribution. See Order No. 685 Approving PSC Report of Reserve Accounts and Order for Final Distribution (docket No. 19414, filed on December 20, 1998). An integral part of this order was our determination that $2,358,456.39 would be paid as attorney fees.

*102 I. BACKGROUND

A brief recitation of the attorney fees tale is in order.

On July 26, 1991, the Court distributed approximately $220 million to the 1400 plus claimants in this litigation.[1] Based on individual retainer agreements between claimants and their attorneys, capped at 25% for minors and 33% for adults,[2] a fee "pot" of approximately $68 million was created, roughly 52.6% of which (approximately $36 million) was paid to the attorneys that comprise the Plaintiffs' Steering Committee (PSC).[3] This left approximately $32 million to be distributed amongst the 58 individually retained plaintiffs' attorneys (IRPAs).

This proportionate share did not sit well with the IRPAs. Thus began a progression of protracted fee and costs appeals which yielded satellite litigation of dimensions not yet fathomable by the United States Supreme Court when it issued its caveats in Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983).

The marathon fee and costs appeals, remands, re-appeals and re-remands[4] consumed so much time that distribution of any funds accumulated post-1991, including the proceeds arising out of the various insurance disputes, was perforce paralyzed for years, leaving us with the indelible impression that the fee distribution part of this litigation "long since outdistanced the substantive part." Gabriele v. Southworth, 712 F.2d 1505 (1st Cir.1983).

II. DETERMINING THE FEE PAYMENT FORMULA

Believing, as we do, that "application of the contingent agreement structure at this stage would be unreasonable in light of the generous fees already paid to all counsel as part of the first distribution and the limited monies presently in the fund",[5] we long ago indicated that fees would be paid as a percentage of the plaintiff's "common fund" without regard to the contingent agreements signed individually by each claimant. Dunn v. H.K. Porter Co., 602 F.2d 1105, 1114 (3d Cir.1979). (District Court has authority to set aside contingent fee agreements when it concludes they would yield unreasonable fees.)

The award of attorney fees as a function of the "common fund" created by counsel's efforts has long been approved *103 by the Supreme Court. Internal Imp. Fund Trustees v. Greenough, 105 U.S. 527, 15 Otto 527, 26 L.Ed. 1157 (1881). Where, as here, the litigation has resulted in a substantial benefit to the claimants, the Court is authorized to enter an award of fees which effectively allocates the costs of the litigation proportionately among the beneficiaries of the action. Mills v. Electric Auto-Lite Co., 396 U.S. 375, 90 S.Ct. 616, 24 L.Ed.2d 593 (1970).

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Related

Trustees v. Greenough
105 U.S. 527 (Supreme Court, 1882)
Mills v. Electric Auto-Lite Co.
396 U.S. 375 (Supreme Court, 1970)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
In Re: San Juan v. Massaro
111 F.3d 220 (First Circuit, 1997)
Dunn v. H. K. Porter Co., Inc.
602 F.2d 1105 (Third Circuit, 1979)
Romeo Gabriele v. Bradford Southworth
712 F.2d 1505 (First Circuit, 1983)
In re San Juan Dupont Plaza Hotel Fire Litigation
50 F. Supp. 2d 100 (D. Puerto Rico, 1999)

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50 F. Supp. 2d 100, 1999 U.S. Dist. LEXIS 8064, 1999 WL 345976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-san-juan-dupont-plaza-hotel-fire-litigation-prd-1999.