Incentive or service awards compensate named plaintiffs for time spent, risks assumed, and burdens borne in prosecuting the action. Amounts typically range from a few thousand to tens of thousands of dollars.
The Eleventh Circuit has held such awards impermissible.
Alternative Names:
Service Award, Named Plaintiff Award
Why it Matters?
The circuit split makes this a live issue, since the Eleventh Circuit's Johnson decision held that incentive awards are prohibited under nineteenth century Supreme Court precedent while other circuits continue approving them. Settlements structured for nationwide effect must account for the possibility that a member in that circuit objects. The awards also raise an adequacy question, since a representative receiving a premium has an interest diverging from absent members.
Frequently Confused with
Related terms
Frequently asked questions
Are incentive awards permitted?
What adequacy concern do they raise?
