Overlawyered: Chronicling The High Cost Of Our Legal System

Class action lawyers to be paid in gift cards

The client class members were to receive only gift cards, not cash, in the settlement with Windsor Fashions, a clothing retailer, so Los Angeles Superior Court Judge Brett Klein thought it only fair to provide that Yorba Linda attorney Neil B. Fineman be paid his fee with “12,500 ten-dollar Windsor Fashions gift cards.” (Metropolitan News-Enterprise via California Civil Justice Blog) (& welcome Megan McArdle readers).

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5 Comments

  • […] Read it. […]

  • I wonder if the IRS will accept some of those gift cards for the portion that is taxable … I am going guess not and that the lawyer is going to have to pay real cash to cover the ‘earnings’ of those gift cards LOL

    • By Alien

  • […] Unfortunately, I can’t confirm the story, but I can say that other reputable blogs, such as Overlawyered, seem to have picked it up, maybe for its entertainment value more than for its news-worthiness.  […]

  • […] the many reactions to our item last week on a Los Angeles judge who ordered that class action counsel be paid in gift cards (having […]

  • I hadn’t even considered the tax implications of these settlements. It’s cute… but not fair under any sense of the word.