In Re: Sears, Roebuck and Co. Front-Loading Washer Products Liability Litigation

District Court, N.D. Illinois·Decided August 3, 2018·No. 1:06-cv-07023·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

In re: SEARS, ROEBUCK AND CO. FRONT-LOADING WASHER Case No. 06 C 7023 PRODUCTS LIABILITY Consolidated with Case Nos. LITIGATION 07 C 0412 and 08 C 1832

This Document Relates to CCU Claims Magistrate Judge Mary M. Rowland

MEMORANDUM OPINION AND ORDER Plaintiffs filed a supplemental motion for attorneys’ fees to recover fees spent litigating their petition for attorneys’ fees in this Court and defending the award on appeal. For the reasons stated below, Plaintiffs’ Supplemental Motion for Attorneys’ Fees [629] is GRANTED IN PART. A. Background Given the long history of this case, the Court provides a brief summary of the relevant background and otherwise assumes familiarity with the prior rulings and history. This is a class action brought by washing machine purchasers against Sears. Whirlpool intervened in the action. On February 29, 2016, following 10 years of litigation, this Court approved the parties’ Settlement Agreement, resolving Plaintiffs’ warranty claims under the Magnuson-Moss Warranty Act (“Magnuson- Moss Act”), 15 U.S.C. § 2301 et seq., as well as state law warranty claims. Under the Settlement Agreement, the parties agreed that Defendants would “pay Class Counsel reasonable attorneys’ fees and costs, without reducing the amount [of] money available to pay Valid Claims submitted by Settlement Class Members.” (Dkt. 502-1 (“Settlement Agreement”), p. 34, Sec. X.A). The parties further agreed that the amount of attorneys’ fees “shall be determined by the Court.” (Id. at p. 35,

Sec. X.B). On November 16, 2015, Plaintiffs filed a fee petition requesting an award of $6 million to class counsel. (Dkts. 530, 531, “Original Fee Motion”).1 Defendants argued that Plaintiffs’ request was unreasonable and asked the Court to award no more than $890,000. On September 13, 2016, this Court granted in part the

Original Fee Motion, awarding $4,770,834 in fees to class counsel. Defendants appealed to the Seventh Circuit Court of Appeals arguing that class counsel should be awarded no than $900,000. On August 14, 2017, the Seventh Circuit reversed and remanded with directions to award $2.7 million, an amount which constituted the lodestar calculated by this Court but without a multiplier. In re Sears, 867 F.3d 791, 793 (7th Cir. 2017) (“We therefore reverse the judgment of the district court

and remand with directions to award $2.7 million—no more, no less—in fees to the class counsel.”). This Court entered judgment in favor of class counsel accordingly. Plaintiffs now seek: (1) $295,000 for litigating their fee motion prior to the appeal (“Motion Fees”) and (2) $482,702.25 for defending their award on appeal (“Appeal Fees”). (Dkt. 630 at 7). Defendants object arguing that: (1) Plaintiffs’

request for pre-appeal fees is untimely; (2) the Seventh Circuit’s opinion bars this Court from awarding any more attorneys’ fees to class counsel; (3) the Settlement

1 Class counsel told the class that they would not request more than $6 million in attorneys’ fees. (see Dkt. 638 at 9, n. 1). Agreement does not authorize any fees-on-fees; and (4) if this Court awards fees, it should use the already-approved, lower hourly rates of class counsel and reduce the amount awarded based on Plaintiffs’ limited success. The Court concludes that an

award of fees-on-fees is proper, albeit for less than class counsel seeks. B. Timeliness and Waiver Defendants argue that Plaintiffs waived their ability to request fees on time spent pre-appeal litigating the Original Fee Motion because they failed to meet Local Rule 54.3(b)’s 91-day deadline. See LR 54.3(b) (a fee motion must be filed “no

later than 91 days after the entry of the judgment or settlement agreement on which the motion is founded”).2 Defendants suggest three potential triggering events for the 91-day deadline, the latest being this Court’s Final Approval Order on February 29, 2016. Using this date, Defendants argue, the motion for pre-appeal fees was due by May 30, 2016.

Between the Final Approval Order on February 29, 2016 and this Court’s judgment on the Original Fee Motion on September 13, 2016, the Court was considering the several legal arguments presented by the parties about how to calculate class counsel’s fees. It is reasonable that Plaintiffs waited for the outcome of the Original Fee Motion before filing a motion requesting fees for preparing that

2 Defendants do not argue that Plaintiffs’ request for Appeal Fees was untimely. With regard to Motion Fees, Defendants argue that this Court’s fee award was “not a judgment and did not make Plaintiffs the prevailing party.” Defendants do not develop the argument that Plaintiffs did not prevail under this Court’s September 13, 2016 Order. That would not be a convincing argument because Plaintiffs achieved nearly 80% success when they were awarded $4.7 out of the $6 million they requested. Motion, and that the triggering event, under Local Rule 54.3(b), be the date the Court issued its decision on the Original Fee Motion.

Courts have considered the triggering date to be the date of the original fee award. See Bd. of Educ. of Evanston-Skokie Cmty. Consol. Sch. Dist. 65 v. Luca, No. 12 C 5073, 2015 U.S. Dist. LEXIS 128085 at *3, 8 (N.D. Ill. Sep. 24, 2015) (finding it reasonable to file a supplemental fee petition after the original fee petition was ruled upon and measuring time for purposes of Local Rule 54.3(b) from the Court’s grant of the first fee petition). In Robinson v. City of Harvey, 617 F.3d 915 (7th Cir.

2010), the Seventh Circuit described supplemental attorneys’ fees awards as common and inevitable, but concluded that plaintiff’s motion was filed well after the time set forth in Federal Rule of Civil Procedure 54 and Local Rule 54.3. Id. at 918– 19. The Court found that the motion was late because “Robinson took more than 1,250 days (measured from the award of fees in October 2004) or 275 days (measured from the appellate decision in June 2007).” Id. at 918.

Defendants argue that the timeliness discussion in Robinson is distinguishable because that case involved a civil rights plaintiff seeking to recover under a fee- shifting statute whereas this case is a non-civil rights case governed solely by a private contract, the Settlement Agreement. Robinson does not make that distinction. And Defendants fail to cite any authority to support the proposition that

timeliness under Rule 54 and Local Rule 54.3 is treated differently in fee-shifting and non-fee-shifting cases. Further, as explained more fully below, this is a fee- shifting case under the Magnuson-Moss Act. Defendants also contend that the September 13, 2016 Order cannot be the “judgment…on which the motion is founded” (LR 54.3) but under Fed. R. Civ. P. 54, a “judgment” is defined to “include[] a decree and any order from which an appeal

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