Radosti v. ENVISION EMI, LLC
2011 U.S. Dist. LEXIS 4858
D.D.C.2011Background
- This is a class action arising from Envision EMI, LLC's youth conferences around Obama’s 2009 inauguration, alleging breach of contract, negligent misrepresentation, and state consumer protection violations.
- A settlement was reached and preliminarily approved; a Final Order Approving Class Action Settlement and Dismissing Class Action with Prejudice was issued on June 8, 2010.
- The class settlement provides two vouchers per member; if vouchers total under $8 million, the shortfall goes to a cy pres fund for future program attendees.
- Claims filed totaled 3,437 to 3,446 with a value around $4.3 million; the cy pres fund thus receives $3,692,500.
- The Court approved the cy pres distribution plan and preliminarily approved attorneys’ fees, expenses, and service awards, with these issues reserved for final consideration.
- Plaintiffs’ motion for attorneys’ fees, expenses, and class representative service awards seeks $1,455,000 in fees and costs and $2,500 to each of six named plaintiffs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether cy pres fund distribution plan is fair | Class counsel | Envision | Plan approved; fair distribution safeguards adopted |
| Whether the attorneys' fee award is reasonable | Fees should reflect 33% of the value of redeemed coupons and cy pres relief | Fees should be restrained and proportionate to recovery | Fees approved at $1,418,262.56 plus cy pres relief considered; overall reasonable |
| Whether the requested expenses are reasonable and compensable | Expense reimbursement justified and properly documented | Expenses should be limited to ordinary and documented costs | Award of $36,737.44 approved |
| Whether class representative service awards are appropriate | Six named plaintiffs deserve $2,500 each for service | No objection; awards customary but need justification | Awards of $2,500 to each named plaintiff approved |
Key Cases Cited
- Swedish Hosp. Corp. v. Shalala, 1 F.3d 1261 (D.C. Cir. 1993) (lodestar and percentage methods for fees in common fund contexts)
- Bd. of Trs. of Hotel & Restaurant Employees Local 25 v. JPR, Inc., 136 F.3d 794 (D.C. Cir. 1998) (lodestar method and fee multipliers in fee awards)
- Vista Healthplan, Inc. v. Warner Holdings Co. III, 246 F.R.D. 349 (D.D.C. 2007) (constructive common fund approach for fees when settlement provides non-cash recovery)
- Cohen v. Chilcott, 522 F. Supp. 2d 105 (D.D.C. 2007) (fee considerations in common fund-like settlements and efficiency of resolution)
- Wells v. Allstate Ins. Co., 557 F. Supp. 2d 1 (D.D.C. 2008) (fee awards in consumer class actions and fees from common funds)