$57 million fee award for consumer lawyers scratched in chicken antitrust appeal

Pilgrims Pride

30/08/2023 21:10

By Mike Scarcella
       Aug 30 (Reuters) - A U.S. appeals court has vacated a
$57 million legal fee award to plaintiffs' lawyers who
represented chicken consumers in antitrust litigation, after
finding a federal judge's ruling on attorney compensation "fell
short" and must be revisited.
    In its ruling, a three-judge panel of the 7th U.S. Circuit
Court of Appeals said the Chicago federal district judge
overseeing the case did not properly consider out-of-circuit fee
awards and also certain bids made by the class attorneys in
other cases.
    The order was the latest in long-running litigation over
claims from consumers and others that Tyson Foods, Pilgrim's
Pride and others conspired to fix chicken prices. The Hamilton
Lincoln Law Institute led the challenge to the legal-fee award.
    The appeals court panel, led by Circuit Judge Michael
Brennan, did not say what amount would be appropriate for the
plaintiffs' firms Hagens Berman Sobol Shapiro and Cohen Milstein
Sellers and Toll. U.S. District Judge Thomas Durkin last year
awarded them 33% from $181 million in settlement funds.
    Brennan said in Wednesday's ruling that "the arrived-upon
figure of one-third of the net settlement warrants greater
explanation and consideration." Brennan heard the case with
Chief Circuit Judge Diane Sykes and Circuit Judge Doris Pryor.
    Ted Frank, director at the Hamilton Lincoln Law Institute
and the Center for Class Action Fairness, on Wednesday said they
hoped the ruling "will ultimately result in the class getting
more money."
    Steve Berman of Hagens Berman said he was "confident after
consideration of the factors outlined by the court judge Durkin
will come to the same place" of the prior fee amount.
    The consumer attorneys said Durkin was "well positioned" to
determine a reasonable fee after "having overseen dozens of
related cases generating over 6,000 docket entries, over six
years."
    The appeals court directed Durkin to take a closer look at
fee bids that class counsel had made in pursuit of court
appointments to lead litigation. Those bids, Brennan wrote,
"reflect the price of co-class counsel's legal services in
antitrust litigation."
    The panel also said Durkin should give appropriate weight to
certain fee awards class counsel won in other non-chicken
litigation at the San Francisco-based 9th Circuit. That circuit
follows a rule that caps legal fees in certain cases, and so
litigating there "informs the price of class counsel's legal
services."    
    The case is In re Broiler Chicken Antitrust Litigation, 7th
U.S. Circuit Court of Appeals, No. 22-2889.
    For objector John Andren: Ted Frank of Hamilton Lincoln Law
Institute and Center for Class Action Fairness
    For plaintiffs: Steve Berman and Shana Scarlett of Hagens
Berman; and Brent Johnson and Benjamin Brown of Cohen Milstein
    
    Read more:
    Chicken price-fixing litigation yields $57.4 mln in fees for
plaintiffs' firms
    'Excessive' plaintiffs fees slashed in Ranbaxy antitrust
cases
    Disk-drive antitrust saga over fees ends with $27 mln award

 (Reporting by Mike Scarcella; editing by Leigh Jones)