Stephen Stetson v. West Publishing Corp.

821 F.3d 1157, 94 Fed. R. Serv. 3d 1284, 2016 U.S. App. LEXIS 8638
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 11, 2016
Docket13-57061, 13-57159
StatusPublished
Cited by65 cases

This text of 821 F.3d 1157 (Stephen Stetson v. West Publishing Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephen Stetson v. West Publishing Corp., 821 F.3d 1157, 94 Fed. R. Serv. 3d 1284, 2016 U.S. App. LEXIS 8638 (9th Cir. 2016).

Opinion

OPINION

M. SMITH, Circuit Judge:

We consider in this disposition whether, when a common-fund settlement agreement has been reached in a class action and fees have been awarded to class counsel, a non-participating class member who objects only to the fee award has standing to appeal the denial of his own request for fees. We also consider a cross-appeal concerning the district court’s reduction of Plaintiffs’ attorney’s fees and costs. We vacate and remand.

FACTS AND PRIOR PROCEEDINGS

This case is before us for the third time. Plaintiffs Stetson et al. first appealed the district court’s order dismissing their complaint in May 2008. After oral argument, we referred the case to mediation. A settlement was reached, and we' remanded the case to the district court “for the limited purpose of considering approval of and approving the settlement agreement between the putative Class and Defendants.” The district court rejected the proposed settlement, and we reasserted jurisdiction. We then reversed the district court’s order of dismissal (the order from which the appeal had originally been taken) but again referred the case to mediation. By February 2013, a new settlement had been reached, and we issued our mandate, returning jurisdiction to the district court.

. The parties presented the new settlement agreement — which included a $9.5 million gross settlement fund — to the district court for approval. Plaintiffs’ attorneys (Class Counsel) sought $1.9 million in fees as compensation, which represented approximately 20 percent of the common fund. Class Counsel also sought $49,934.89 in costs. Certain class members (Objectors) objected to the fee request (but not to the underlying settlement), asserting 'that Class Counsel were entitled to no more than $380,000 in fees. Objectors then sought 20 percent of any reduction in Class Counsel’s fees as their own fee award, as well as $1,000 in incentive awards for each individual objector.

The district court granted $585,000 in fees to Class Counsel, which reflected a reduction of requested fees of approximately 70 percent. It also reduced Class Counsel’s costs reimbursement to $20,588.17. The district court announced its reasoning from the bench, as follows:

The Court finds that the lodestar method is preferable in the circumstances of this case. In re Bluetooth Headset Prods. Litig., 654 F.3d 935 (9th Cir.2011).
Using the lodestar method, the Court first determines the reasonable fee by multiplying the reasonable hourly rate by the reasonable hours expended in the litigation. Here, class counsel has provided a declaration with the schedule of hourly rates charged by each attorney who worked on the matter and how many hours were expended by those attorneys. After review of the time-sheet submissions and declarations of counsel, the Court finds that the hourly fee and hours expended are not reasonable.
First, the hourly fee charged by counsel is beyond the prevalent market rate. The Court finds that a reasonable hourly fee for an attorney with the experience of class counsel dealing with a case of this magnitude and degree of difficulty in the Central District is $450 per hour. See Trevino v. Gates, 99 F.3d 911 (9th Cir.1996).
Second, the Court finds that many of the hours billed by class counsel were redundant, excessive, or otherwise unnec *1163 essary. Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983).
For instance, Class Counsel Disner’s time sheet does not separate and describe the time and tasks performed by each attorney; indeed, it appears that on many entries two attorneys billed for the same work. In sum, the Court finds that class counsel’s reasonable fee is $585,000. This is using the $450 per hour rate applied .across all counsel and to the total 1300 hours reasonably spent on this case.
Further, taking account of class counsel’s experience, skill in litigating this case, the complexity of the issues involved, and the customary fees charged by counsel in similar cases, the Court finds that the lodestar fee is reasonable and, on balance, the Kerr factors do not justify an upward or downward adjustment. Kerr v. Screen Extras Guild, Inc., 526 F.2d 67 (9th Cir.1975).

The district court also found that Class Counsel “inadequately supported its claim for expert fees; specifically, with the exception of Mr. Rook, class counsel has not provided the Court with information regarding how crucial or indispensable the unnamed experts were to the litigation.” Finally, the district court denied Objectors’ fee request in its entirety, finding that Objectors’, role was not “even minimally material in bringing about the successful settlement” because Objectors “did not add anything to the Court’s independent analysis.”

Both Plaintiffs and Objectors appealed.

DISCUSSION

We review an award of attorney’s fees for abuse of discretion. Stanger v. China Elec. Motor, Inc., 812 F.3d 734, 739 (9th Cir.2016). A district court abuses its discretion when it applies an incorrect rule of decision, or when it applies the correct rule to factual conclusions that are “illogical, implausible, or without support in the record.” . Rodriguez v. Disner (Rodriguez II), 688 F.3d 645, 653 (9th Cir.2012). Findings of fact are reviewed for clear error; conclusions of law are reviewed de novo. Stanger, 812 F.3d at 738.

I. Objectors’ Standing to Appeal

.In a class action, an. objector need not establish standing to object to an award of attorney’s fees by the district court. The district court has “the authority and duty to pass upon the fairness of the attorneys’ fees . settlement independently of whether there was objection.” Zucker v. Occidental Petroleum Corp., 192 F.3d 1323, 1329 (9th Cir.1999). The objector therefore needs only a procedural vehicle with which to place his arguments before the district court, which is provided by Federal Rule of Civil Procedure 23(h)(2): “A class member, or a party from whom payment is sought, may object to the motion [for class counsel’s fees].”

If, however, an objector seeks to appeal an award of fees to class counsel, he “must independently satisfy Article III” — that is, he must demonstrate standing to appeal independent of his ability to object before the district court. Knisley v. Network Assocs., Inc., 312 F.3d 1123, 1126 n.

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Bluebook (online)
821 F.3d 1157, 94 Fed. R. Serv. 3d 1284, 2016 U.S. App. LEXIS 8638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephen-stetson-v-west-publishing-corp-ca9-2016.