Levitt v. Southwest Airlines Co.

In class action in which class members contested defendant-airline’s decision to stop honoring in-flight drink vouchers for “Business Select” customers, Dist. Ct. erred in denying request by objector seeking $80,000 in attorney fees and $1,000 incentive award arising out of objector’s successful attempt to obtain more drink vouchers for class members than what was called for in original settlement of class action, where objector sought said fees and award from $1.8 million in fees paid to class counsel. While Dist. Ct. based said denial on belief that requiring class counsel to pay objector’s fee and incentive award would undo supplemental agreement between parties that gave additional vouchers to class members and additional fees to class counsel, Ct. of Appeals found that settlement agreements should not be read to bar objector’s request arising out of his efforts in adding value to settlement. Moreover, objector’s counsel should receive fees for improving instant settlement, where: (1) payment of requested fees/award by class counsel had no effect on defendant’s obligations under either settlement agreement; (2) settlement agreements did not bar fee request by objector; (3) objector’s efforts resulted in creation of common fund of additional drink vouchers for benefit of class members; and (4) instant $80,000 fee request represented only 10 percent of value of additional vouchers. Ct. further noted that it would be opposed to any additional fee request by class counsel.