Quimby v. United States
107 Fed. Cl. 126
| Fed. Cl. | 2012Background
- Class action on behalf of current and former Veterans Health Administration employees seeking back pay for additional pay during paid leave.
- Two unopposed motions: final settlement approval under RCFC 23(e) and fees/costs/administration from the Settlement Fund under RCFC 23(h), 52(a), 54(d).
- Court previously certified an opt-in class and approved notice; 58,479 were notified, 44,019 eligible for back pay, with 14,460 potentially eligible pending documentation.
- Settlement Agreement provides a $73,990,712 Settlement Fund and a distribution method proportional to each member’s back pay entitlement, after fees and costs.
- Class counsel and VA negotiated at arm’s length; one objection was filed; overall class reaction favorable.
- Court approves the settlement with a minor modification and approves fees, costs, and administration from the Settlement Fund, including a $3,700,000 reserve for future admin costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the settlement fair, reasonable, and adequate under RCFC 23(e)? | Curry likely argues the deal reflects best recovery and reduces litigation risk. | VA argues settlement balances risks and administration but preserves issue merits via court review. | Settlement approved as fair, reasonable, and adequate. |
| Are attorneys’ fees from the Settlement Fund reasonable (30%)? | Counsel earned substantial results after years of work; 30% is within norms for complex class actions. | No opposing argument; seeks standard percentage from fund. | Fees approved at 30% of the Settlement Fund. |
| Are the reimbursable costs and administrator expenses reasonable and properly allocated? | Out-of-pocket costs and administration costs are necessary and customary. | Costs should be limited to documented, reasonable amounts. | Reimbursement of $144,584.21 to plaintiffs’ costs and $252,485.57 to the Class Action Administrator approved; reserve set at $3,700,000. |
Key Cases Cited
- Berkley v. United States, 59 Fed.Cl. 675 (Fed. Cl. 2004) (guidance on fairness factors for settlement approval)
- Sabo v. United States, 102 Fed.Cl. 619 (Fed. Cl. 2011) (settlement fairness considerations and class action posture)
- NTEU v. United States, 54 Fed.Cl. 791 (Fed. Cl. 2002) (role of settlement factors in final approval)
- Moore v. United States, 63 Fed.Cl. 781 (Fed. Cl. 2005) (guidance on calculating and evaluating attorneys’ fees in class actions)
- In re Combustion, Inc., 968 F. Supp. 1116 (W.D. La. 1997) (fee awards in complex class action settlements)