Class Actions: Legislation Pending For Governor Approval Would Allow Trial Courts Discretion To Award Attorney’s Fees To Successful Class Action Settlement Objectors

 

Bill Would Abrogate Flemming v. Barnwell Nursing Decision.

     In our October 22, 2010 post, we reported on the New York Court of Appeals’ decision in Flemming v. Barnwell Nursing, which denied awarding attorney’s fees to a class action settlement objector whose efforts helped reduce requested class counsel fees of $448,000 down to $425,000 in a $950,000 settlement.

     Now, a New York bill is pending for Governor Andrew Cuomo’s approval that would reverse the 1975 law that Flemming relied on in denying the fee award to the objector. The bill would allow trial courts discretion to allow attorney’s fees to a successful class action settlement objector who increased the amount of a settlement or the benefits for a class. Governor Cuomo does not comment on pending legislation, but some like the bill while others say that it will promote spurious objections to class action settlements.

     More details on this bill can be found at the September 21, 2011 post at thomsonreuters.com.