Rule 23(h) governs fee awards in certified classes. Courts use the percentage of fund method, typically ranging from twenty to thirty-three percent, or the lodestar method multiplying reasonable hours by reasonable rates with a possible multiplier.
Many courts cross-check one method against the other.
Alternative Names:
Class Counsel Fees, Rule 23(h) Fees
Why it Matters?
The relationship between the fee and actual class recovery is what courts now examine most closely, particularly in claims-made settlements where a large nominal fund produces small actual distribution. Fee awards calculated on the nominal fund while members claim a fraction of it have drawn appellate reversal. Structuring fees against amounts actually distributed addresses the criticism and improves approval prospects.
Frequently Confused with
Related terms
Frequently asked questions
How are class fees calculated?
What draws appellate scrutiny?
