Stephen Stetson v. West Publishing Corporation
714 F. App'x 681
| 9th Cir. | 2017Background
- Class counsel sought attorney fees and costs after a common-fund class settlement; the district court awarded fees using the lodestar method and denied certain expert costs.
- On prior appeal this Court affirmed the district court’s discretion to use lodestar but remanded for clearer explanation of lodestar factors.
- On remand class counsel submitted updated briefing seeking delay compensation (either updated 2016 hourly rates or a prime-rate enhancement) and asserted entitlement to a risk multiplier.
- The district court recalculated fees but relied on 2013 rates (and a 2015 Real Rate Report not in the record) and did not address delay compensation methods.
- The district court denied a risk multiplier based on its (erroneous) hourly-rate finding and denied $29,000 in expert costs for lack of sufficient documentation tying amounts to specific experts.
- This appeal challenges the remand award; the Ninth Circuit affirms in part, vacates in part, and remands for further proceedings on fees but affirms denial of the expert costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Appropriate fee method | Lodestar is permissible; court should follow remand instructions and update lodestar | Lodestar remains appropriate; prior methodology acceptable | Court: District court may again use lodestar; using lodestar was not error |
| Delay compensation for contingent-fee delay | Update hourly rates to 2016 or apply prime-rate enhancement to compensate delay | Use earlier rates (2013) — no additional delay compensation needed | Court: District court erred by failing to apply delay compensation or update rates; vacated and remanded to correct this |
| Risk multiplier (enhancement for risk) | Case merits a risk multiplier or at least reconsideration using updated rates | Hourly rates already reflect risk, so no multiplier needed | Court: Denial based solely on flawed hourly-rate finding is unsupportable; remand to reconsider with updated rates and explain basis fully |
| Expert costs ($29,000) | Experts were heavily consulted re damages and settlement; costs are justified | Records insufficiently allocate fees to each expert; amount unsupported | Court: Affirmed denial as appellants failed to justify amounts or tie time entries to specific experts |
Key Cases Cited
- Stetson v. Grissom, 821 F.3d 1157 (9th Cir. 2016) (district court may apply lodestar or percentage-of-fund; remand required clearer lodestar findings)
- Fischel v. Equitable Life Assurance Soc’y, 307 F.3d 997 (9th Cir. 2002) (attorneys in common-fund cases must be compensated for delay)
- Stanger v. China Elec. Motor, Inc., 812 F.3d 734 (9th Cir. 2016) (district court must adequately explain decision on risk multipliers)
- In re Bluetooth Headset Prods. Liab. Litig., 654 F.3d 935 (9th Cir. 2011) (lodestar adjustments via multipliers permitted only in rare and exceptional cases; Kerr factors guide reasonableness)
- Fischer v. SJB-P.D., Inc., 214 F.3d 1115 (9th Cir. 2000) (rare and exceptional standard for departing from lodestar)
- Escriba v. Foster Poultry Farms, Inc., 743 F.3d 1236 (9th Cir. 2014) (denial of costs reviewed for abuse of discretion)
