Class action attorney fees are typically only paid if the case is successful. Even then, the amount the class action attorney is actually paid in finally determined and approved of by the judge of the class action case.
If the damages assessed to the defendant are based on a monetary figure alone, the class action lawyer will typically request and be awarded approximately 30% of the amount awarded as their class action attorney fee. After that is paid, the remainder of the money is allocated to the plaintiffs in the class action.
In some cases though, the judgment may not be compensatory – rather it may be the cessation of a behavior or policy, the removal of a plant or a company may have to complete a task, like cleaning up an oil spill or another toxic or environmental exposure. Because this kind of judgment is not based on a specific monetary figure, it is up to the judge and the court to determine the correct class action attorney fee structure that should be awarded to the class action attorney who built the case.
There is a specific process by which this is determined. The class action lawyers in the case must submit a “fee petition” to the court after they have won the case. The petition must encompass all of their records relating to the case itself. They must keep a record during the case of the following items:
- Expenses incurred while preparing for and presenting the class action case.
- The number of hours put in by the attorney, firm and staff towards the class action.
- Research costs, including any scientific or lab tests and results and studies used to prove their case.
- he risks involved for the attorney and staff involved in the class action.
The final compensatory dollar amount determined by the court also takes into consideration the difficulty level of the case including the length of time it took to prepare and try the case, the feelings and opinions of the people represented as the “class” in the class action lawsuit, and the overall quality of the work put forth. The court is supposed to truly ensure that class action attorneys are appropriately compensated for their hard work and diligence.
On some level, many class action attorneys are considered to be working as private “attorneys general” meaning that their actions are integral in keeping companies in alignment with the laws of our country. Without class action attorneys, many companies could monopolize markets, take advantage of consumers and potentially cause a great deal of harm to people, all in the name of profit. Although class action lawyers are compensated well in some cases, the cost of mounting class action lawsuits like this, against large companies like Wal-Mart or the tobacco industry, is significant, so in many cases, the compensation is well deserved.
If you are considering mounting a class action lawsuit, make sure you choose a reputable class action attorney who is committed to taking your case to success. They should understand that their class action attorney fees are tied to their success and hard work. In many cases, this is why larger firms can compete in these cases more effectively than individual attorneys – but not matter what, choose a class action attorney you can trust.