Who says we shrink from giving lawyers favorable publicity? From a report earlier this month in the Rocky Mountain News:
The California law firm Lerach Coughlin sought $96 million in legal fees when it engineered a $400 million shareholder class-action settlement with Qwest Communications over alleged securities fraud.So how much did Denver attorney Curtis Kennedy seek when he prevailed in getting those legal fees slashed to $60 million - thus providing $36 million more for the shareholders?
Only $40,500. That’s the 90 hours Kennedy spent on the case times his hourly rate of $300 times 1.5, according to a federal court filing this week. …
Other attorneys might have tried to get a percentage of the $36 million.
“I just think that would be hypocritical after asking the judge to apply moderation” to the $96 million request by Lerach Coughlin, Kennedy said.
Kennedy was representing the Association of U S West Retirees in the case. (Jeff Smith, “Lawyer asks for $40,500 in legal fees”, Rocky Mountain News, Oct. 12)(via Securities Litigation Watch).
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In Bill Lerach; class actions; Coughlin Stoia; Denver
Honorable Mention? He oughta be in the Overlawyered Hall of Fame!
How refreshingly reasonable.
If THAT was the normal behaviour by lawyers, support for this site would dry up.
why x1.5 though?
Is that to cover for expenses outside the normal fee?
But a great step, and a massive slap in the face of the other lawyers in the case.
A multiplier reflects the risk that the attorney will lose the case and collect nothing. The idea is that if the lawyer isn’t compensated for the risk ex post, he won’t have the incentive ex ante to engage in the risk.