Class Action: Trial Judge’s Reduction Of Class Action Counsel Fees From $250,000 To $180,000 Was No Abuse Of Discretion

Lower Court Does Not Have To Agree To Maximum Amount Ceiling In “Clear Sailing” Provision Under Settlement Agreement And Does Not Have To Award Percentage of Recovery Fees.

            Orozco v. Pebble Beach Co., Case No. H044232 (6^th Dist. Dec. 14, 2018) (unpublished) demonstrates that lower courts do not have to award percentage of recovery class counsel fees in class action cases under Laffitte v. Robert Half Internat., Inc., 1 Cal.5th 480 (2016) [our Leading Case No. 17]. What happened here is that parties agreed to a “clear sailings” clause in a wage/hour class action settlement that the defense should not challenge fees “up to” $250,000, one-third of the gross settlement common fund. However, the trial court awarded only $180,000 based on hourly rates it deemed excessive and based on its perception that the hours claimed were not commensurate with work seen on like cases.   The Sixth District affirmed, because Laffitte does not mandate that a percentage-of-recovery fee recovery has to be made as a matter of law. The “clear sailings” provision did not require otherwise, given that only an award “up to” the $250,000 had to be considered—it did not hamper the trial judge from making a lower award. Lower fee award affirmed.