In re: Sears, Roebuck and Co.

Federal 7th Circuit Court
Civil Court
Attorney Fees
Citation
Case Number: 
No. 16-3554
Decision Date: 
August 14, 2017
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed and remanded

Dist. Ct. erred in awarding plaintiffs’ attorneys $4.8 million in fees associated with prosecution of class action pertaining to defendant’s front-loading washing machine, where said award represented 1.75 times $2.7 million in fees attorneys had charged for their work on case. Record showed that class members would share in no more than $900,000 from settlement of class action, and while Dist. Ct. found that 1.75 multiplier was justified due to novelty/complexity, degree of success and public interest factors in case, Ct. of Appeals found that attorneys had failed to prove that reasonable fee would exceed $2.7 million, which was already three times what was awarded to class.