# U n i t e d S t a t e s C o u r t o f A pp e a l s
For the Eig hth Circu it

_ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _

No . 1 8 -2 3 46

_ _ _ _ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _

J o s h u a Rawa, o n b eh al f o f h i m s el f an d al l o t h ers s i m i l arl y s i t u at ed ; El i s ab et h

M art i n ; Ro bert Rav en cam p ; Am y W ard ; Cy nt h i a Dav ies ; Ch ri st o p h er Ab b o t t ; Owen Ol s o n ; J ean n i e A. Gi l ch ri s t ; Zach ary Sh o l ar; M at t h ew M y ers ; J o h n W

. Beard , J r.; M i ch ael Ov ers t reet

l l l l l l l l l ll l l l l l l l l l l Pl a in t i

f f s - Ap pel l ees

v

.

M o n s an to Co m

p an y

l l l l l l l l l ll l l l l l l l l l l Def

en da n t - Ap

p el l ee

v

.

J am es M ig l i acci o

l l l l l l ll l ll l l l l l l l l l l Ob

j ect o r - Ap

p el l a n t

Pat ri ck Sween ey

l ll l l l l l l l l l l l l l l ll l l O b

j ect o r

_ __ _ _ __ _ __ _ _
Ap p eal fro m

Un i t ed St at es Di s t ri ct Co u rt fo r t he Eas t ern Di s t ri ct o f M i s s o u ri - St . Lo u i s

_ __ _ _ __ _ __ _ _

Su b m it t ed : Ap ri l 1 6, 2 0 1 9
Fi l ed : Au g us t 2 0 , 2 0 1 9

_ __ _ _ __ _ __ _ _Befo re SM ITH, Ch i ef J u d g e, ARNOLD an d KELLY, Ci rcu it J u dg es

.

_ __ _ _ __ _ __ _ _

SM ITH, Ch i ef J u d g e.

Ap p el l an t -o b

ject or Ja m e s M i gliacci o was a m em b er of a Cal i fo rn ia cl as s act i o n

ag ai n s t M o n s an t o Co m

p an y t h at al l eg ed t he co m

p an y us ed m is l ead i n g l ab el in g o n i t s

Ro u n d u p co ncen t rat e h erb i ci d e. Fo l l o w i n g cert i fi cat i o n o f t h e Cal i fo rn i a cl as s i n t h e

Cen tral Di s t ri ct o f Cal i fo rn i a, cl as s co u n s el fi led t h e p res en t act io n i n t h e Eas t ern

Di s t ri ct o f M i s s o u ri o n b eh a l f o f a p u t at i v e cl as s o f co n s u m ers fro m t h e o t h er 4 9

s t at es . Th e p art ies reach ed a nat i o n wi d e s et t l em en t ag reem en t

. Th e Cen t ral Di s t ri ct

o f Cal i fo rn i a t ran s ferred t he Cal i fo rn i a act i o n t o M i s s ou ri

, wh ere M o n s an t o res i d es , i n o rd er t o co n s o l i d at e t h e cas es an d s eek p rel i m i n ary a p p r o v al of t he nat i o n wi d e

s et t l em en t

. Th e fed eral d i s t ri ct co u rt 1 i n Mi s so u ri g ran t ed p rel i m i n ary ap p ro v al o f t h e

s et t l em en t an d i t s n o t i ce p l an

. Aft er t h e n o t i ce p eri o d en ded

, t he p lai n t i ffs fi l ed fo r

fi nal ap p ro v al o f t h e se tt l em en t

. M ig l iacci o o b ject ed to cert i fi cat i o n o f t h e nat i o n wi d e
cl as s an d t o t h e fai rn es s o f t he s et t l em en t o n s ev eral g ro un d s

. Th e d i s t ri ct co u rt

o v erru l ed h i s o b

je c t i o n an d g ran t ed fi n al ap pro v al

. U p o n rev i ew, we co n cl u d e t h at

t h e cl as s m em

b e r s w e r e ad eq u at el y rep res en t ed an d t h at t h e s et t l em en t was

reas on ab l e, fai r, an d ad eq uat e. W e t h erefo re affi rm

.

I. Ba ckg r o u n d

M onsa n to m a nuf act u res an d m ark et s Ro u n du p , a w e l l- k n ow n he r bic ide

, in both

co n cen t rat e an d read y -t o -u s e fo rm s

. Th e co m p an y m ark et ed i t s co ncen t rat e p ro d u ct s , wh i ch req u i re d il ut i o n b efo re u s i n g , a s a b et t er v al ue fo r co n su m ers

. In t h i s cl as s

act i on l aws u i t

, p l ai n t i ff co n s u m ers al l eg ed th at M o n s an t o m i s led t h e m ab o u t t h e

co n cen t rat io n s t ren g t h o f t h es e p ro d u ct s t h r o u g h i t s p ro d u ct l ab el i n g

. In d o i n g s o,

p l ai n t i f f s cl ai m , Mo n s an t o im

p l i ci t l y m i s rep res en t ed t h ei r v al u e— b y n earl y 5 0

1 Th e Ho n o rab l e Au d rey G

. F l e i s s i g , Un i t ed St at es D i st ri ct J ud g e fo r t h e Eas t ern Di s t ri ct o f M i ss ou ri

.

-2

-p ercen t o n s o m e u n i t s

. As an ex am p l e, o n e pro d uct ’ s l ab el ad v ert is ed t h at i t co u l d b e

u s ed t o m ak e u p t o t en g al l on s

. Bu t co ns u m ers d is co v ered t h a t

, w h e n d i l u t ed

acco rd i n g t o p ack ag e i n s t ru ct i o n s , t h e p ro d u ct o n ly m ad e ju s t o v er fi v e g al l o n s

.

C l a s s co u ns el ori gi nal l y fi l ed t h e s u i t i n t h e Cen t ral Di s t ri ct o f Cal i fo r n i a o n
b eh al f o f a n a t i o n wi d e cl as s

. Th e co u rt

, h owev er, ev en t u al l y cert i fi ed o n l y a
Cal i fo rn i a c l as s

. Cl as s co u n sel s u b s eq u en t l y fi l ed a co m p l ai n t i n Mi s s o u ri

, M o n san to ’ s p ri n ci p al l o cat i o n , o n b eh al f o f a p u t a t i v e cl as s of co n s u m ers fro m t h e

o t h er 49 s t at es

. Th e co m

p lai n t al l eg ed vi o lat i o n s o f b o t h fed eral an d M i s s o u ri l aws

. Th e p art ies n eg o t i at ed an d reach ed a t en t at i v e n at i o n w i d e s et t l em en t

. O t h er s i m i l ar

act i on s h ad been fi l ed in co u rt s acro s s t h e co u nt ry , an d cl as s co u n sel reach ed o u t to

t h e p l a i n t i ffs i n each cas e t o ad v i s e t h em o f th e s et t l em en t ’ s t erm s

. Each ag reed t o

s u p p o rt t h e set tl em en t i n ex ch an g e fo r cl as s co un s el ’ s pro m i s e t o seek i n cen t i v e
award s an d rei m

b u rs em en t fo r co s t s an d fees

.

Cl as s co u n sel m o ved t h e Cen t ral Di st ri ct of Cal i fo rn i a t o t ran s fer t h e act i o n to

t h e Eas t ern Di s t ri ct o f M i s s o u ri

, s eek i n g co n so l i d at i o n wi t h t h e 4 9 -s tat e cl as s act i o n.

Th e co u rt g ran t ed t h e m ot i o n

.

Th e p l ai n t i ff cl as s t h en m o ved t h e fed eral d i s t ri ct co u rt i n t h e Eas tern Di s t ri ct

o f M i ss o u r i f

o r p rel i m i n ary ap p ro v al o f t he nat i on wi de s et tl em en t

, wh i ch co v ered

o v er f o u r m i l l i o n ret ai l u n i t s rep res en t i ng ab o u t $ 1 6 4 m il l i o n in ret ai l s al es

. Th e

m o ti o n s et fo rt h a n ot i ce p l an , d es i g ned b y t h e cl as s ad m i n i s t rat o r, wh i ch es t i m at ed

a cl as s s i ze o f ap p ro x i m at el y 3 .5 m i l l i o n m e m

b ers w h o b o u g h t t h e pro d u ct s d u ri n g

t h e rel ev an t t i m e p eri o d

. Th e no t i ce p l an t arg et ed o v er 2 0 m i l l i o n p e o p l e wh o h ad

u s ed weed k i l l er p ro d u ct s in t h e p as t

. Th e p lan as s u m ed th at t h e cl as s m em bers wo u ld

b e i n cl u d ed am o n g t h at n u m b er an d recei v e ad eq u at e n o t i ce o f t he s et t l em en t

. T h e

co u rt g ran t ed prel i m i n ary ap p ro v al o f t h e s et t l em en t an d ap p ro v ed t h e p ro p o s ed

n o t i ce p l an

.

-3

-Acco rd i ng to th e term s of t h e s et t l em en t

, M o n s an t o w o u l d e s t ab l is h a $ 2 1

. 5

m i l l io n n o n -rev ers i o n ary Co m m o n Fu n d fo r cl ai m s , no t ice, an d ad m i n i s t rat i on co s t s ;

i n cen t i v e award s; an d at t o rn ey s ’ fees

. Cl as s co u n s el co u l d ap p l y fo r fees u p t o o n et h i rd o f th e Co m

m o n Fu nd fo r t h ei r serv i ces

. An y rem ai n i ng u n cl ai m ed fu n d s wo u ld

b e d o n at ed t o cy p r es reci p i en ts

. 2

Aft er t h e n o t i ce p eri o d en d ed an d th e cl ai m s were p ro ces s ed

, t h e p l ai n t i ffs

m o ved fo r fi n al ap p ro v al o f t h e set t l em en t a n d fo r at t o rn ey s’ fees

. Th e cl as s
ad m i n i s t r a t o r t es t i fi ed t h at i t h ad v al i d at ed a t o t al o f 7 0

, 3 60 cl ai m s , v al u ed at
$ 1 0 ,7 3 2 ,8 3 2

. Si n ce t he cl ai m s co rres p o nd t o a 5 0 p ercen t refu n d fo r t h e co n s u m ers ’

affect ed p urch as es , t h e cl as s ad m i n i s t rat o r tes t i fi ed t h at t h e v al ue o f t h e c l ai m s

rep res en t ed o v er $ 2 1 m i ll i o n in ret ai l s al es

. Becau s e M on s an t o m ad e $ 1 6 4 m i l l i o n in

ret ai l s a l es fo r t h e rel ev an t p eri o d

, t h i s p ro d u ced a cl ai m s rat e o f 1 3 p ercen t

. Cl as s

co u ns el s o u g h t o n e-t h ird of t h e Co m m o n Fu n d ($ 7 ,1 6 6 ,6 66 ) fo r at t o rn ey s’ fees

.

M i g li acci o fi l ed an o b

j ect i o n op p o si n g cl as s cert i fi cat i o n an d fi n al ap p ro v al o f

t h e s et t l em en t

. He as s ert ed t h at co n s ol i d at i o n o f t h e Cal i fo rn i a cl as s wi t h t h e

n at i o n wi d e cl as s d i lu t ed t h e Cal i fo rn i a cl as s m em bers ’ cl ai m s , creat i n g a co n fl i ct o f

inte r e st f o r th e n at io n wi d e cl as s co u n s el t h at ren dered t h ei r rep res en t at i o n ina de qua te

. Pri o r t o t ran s fer an d co n so l i dat i o n o f t h e Cal i fo r n i a

- a n d M i s s o uri -b as ed cl as s es ,

2 C y p r e s (fro m t h e ex p res s i o n cy p r es co mme p os s i b l e , m ean i n g “ as n ear as

p o s s i b l e”) i s an eq u i tab l e do ct ri n e wi t h o ri g i n s i n t ru s t an d es t at es l aw. In r e Ai r l i n e Ti cket Co mm’n An t i t r u s t Li t i

g

. , 3 0 7 F.3 d 6 7 9 , 6 8 2 (8 t h Ci r. 2 0 0 2).

In t h e cl as s act i o n co n t ex t

, i t m ay be ap p ro p ri a t e

. . . t o u s e cy p res
p ri n ci p l es t o d i s t ri b u t e u n cl ai m ed fu n d s . In s u ch a cas e, t h e u n cl ai m ed
fu n d s s h o u ld b e d i s t ri b ut ed fo r a p u r p o s e a s near as p o s s i b le t o th e l eg i t i m at e o b

ject iv es u nd erl y i n g t h e l a w s u i t

, t h e i n teres t s o f cl as s

m em b ers , an d t h e i nt eres t s o f t h o s e s i m i l arl y s i t u at ed

.

Id

.

-4

-co u ns el co n s u l t ed wi t h a l eg al et h i cs ex p ert t o ad d res s p o t en ti al co nfl i ct -o f-i n t eres t

co n cern s. Bas ed o n th e ex p ert ’ s ad v ice, c o u n s e l r e p res en t ed t o t h e co u rt t h at n o

co n fl i ct ex i s t ed

. M ig li acci o ch al l en g ed t h e fai rn es s o f b o t h t h e p ro p o s ed set t l em en t

t erm s an d t h e at to rn ey s ’ fee award . He d em an d ed t h at t h e n at i o nwi d e cl as s co u n s el

p ro d uce th e ex pert et h i cs o pi n i o n s o u g h t b efo re t h e t ran s fer, an d h e u rg ed t h e co u rt

t o p erfo rm

a l od es t ar cro s s -ch eck o n t h e at t orn ey s ’ fee award

.

Th e co u rt as k ed cl as s co u n s el t o s u b m i t d et ai l ed b il l i n g reco rd s an d rat es to

s u p p ort t h e m o t i o n fo r at t orn ey s ’ fees an d t hen h el d a t wo -h o u r fai rn es s h eari n g , i n
wh i ch M i g l i acci o p art i ci p at ed

. Fo l l o w i n g th e h ear i n g , t he co urt en t ered an o rd er

g ran t i n g fi n al cert i fi cat i o n t o t he n at i o n wi d e cl as s , fi n al ap p ro v al o f t h e s et t l em en t

,

an d at t o rn ey s ’ fees t o t al i n g 2 8 p ercen t o f t h e Co m m o n Fu n d

.

II. Di scu s s i o n

M i g li acci o rai s es fo u r i s s u es o n ap p eal

. Fi rs t

, h e ch al l en ges t h e fi n al ap p ro v al

,
arg u i n g t h at t h e d i s t ri ct co u rt b as ed i t s fai rn es s an al y s i s on erro n eo u s fact s

. Seco n d,

h e av ers t h e c o urt fai l ed t o u n co v er et hi cal co n fl i ct s th at m ad e cl as s cert i fi cat i o n

i n ap p ro p ri at e. Th i rd

, h e co n t en d s t h e award of at t o rn ey s ’ fees i s t o o h i g h

. Fo u rt h

, h e

arg u es t he cy p r es d i s t ri b u t i o n o f fu n d s rem ai ni n g i n t h e Co m m o n Fu n d o n ce al l

ex p en s es are d ed u ct ed i s i n ap p ro p ri a t e a n d sh o ul d in s t ead b e ret u rn ed t o cl as s

m em b ers

. In res p on se, t h e cl as s act i o n p lai n t i ffs arg u e t hat M i g li acci o l ack s s t an d i n g

t o b ri n g t h i s ap p eal b ecau s e h e co u l d n o t recei ve an y ben efi t fro m a fav o rab l e

o u t co m e.

A. S t a n d i n g
Befo re reach i n g t h e m eri t s of h i s arg u m en t s , we fi rs t ad dres s t h e p l ai n t i ffs ’

as s ert i o n t h at Mi g l i acci o l ack s s t an d i ng t o b ri ng t h es e cl ai m s

. Th ey n o t e t h at “ cl as s

m em b ers l a c k s t a n d in g t o ap p eal as p ect s o f a cl as s act i o n s et t l em en t t hat d o n ot

ad v ers el y affect t h ei r o w n i n t eres t s .” Hu yer v. Va n d

e V o or d e , 8 47 F.3 d 9 8 3, 9 8 7 (8 th

Ci r. 2 0 17 ). Th ey as sert t hat M i g l i acci o l ack s s t an di ng t o ch al l en g e t h e fai rn es s o f a

-5

-s et t l em en t t h at fu l ly co m p en s at es h i m fo r hi s cl ai m ed o u t -o f-p o ck et l o s s es

. Si m i l arl y ,
t h ey cl ai m he l ack s s t an d i n g t o ap p eal t h e award o f at t o rn ey s ’ fees b ecau s e, acco rd i n g

t o th e t erm s o f t h e s et t l em en t ag reem en t

, an y fees d eem e d ex ces s i v e wo u l d b e

ret u rn ed to t h e Co m

m o n Fu n d an d d i s t ri bu t ed t o cy p r es b en efi ci ari es rat h er t h an to

cl as s m em

b ers

.

“ To s h o w s t an d i n g u nd er Art i cl e III o f t h e U.S. Co n s t i tu t i o n , a p l ai nt i ff m u s t

d em o n s t rat e (1 ) i n

j u r y i n f act

, (2 ) a cau s al co nn ect i o n bet ween t h at i n ju ry an d t h e
ch al l en g ed co n d u ct

, an d (3 ) t he l i k el i h o o d t h at a fav o rab l e d eci s i on b y t h e co u rt wi l l

red res s t h e al l eg ed i n

ju ry .” Io wa Lea g u e o

f Ci ti es v. EPA

, 7 1 1 F.3 d 8 4 4

, 8 6 9 (8 t h Ci r.

2 0 1 3 ) (i n t ern al q u o t at io n om i t t ed ). “ Th e s t an d i n g Art i cl e III req ui res m u st b e m et by

p ers o n s s eek i n g ap p el l at e rev i ew, ju s t as i t m u st b e m et by p ers on s ap p e a r i n g i n

co u rt s o f fi rs t i n st an ce.” Ar i z o n a n s f o r O f fi ci a l En g l i s h v. A r i

zo n a , 5 2 0 U.S. 4 3

, 6 4
(1 9 9 7). M i g l i acci o as s ert s t h e d i s t ri ct co u rt re l i e d o n erro n eo u s fact u al fi n d i n g s in

d et erm i n i n g t h e s et t l em en t was fai r, reas o n ab le, an d ad eq u at e. He al s o co nt en d s t h at

h e wo u l d h av e recei v ed a m ore fav o rab l e o u t co m e un d er Cal i fo rn i a s t at e l aw h ad t h e
cl as s es n o t b een co n s ol i d at ed

. Hi s ch al l en g e t o t h e s et t lem en t ’ s d i s t ri b u t i on o f fu n d s , i f s u c c e s s fu l

, wo u l d y iel d a h i g h er reco v ery fo r cl as s m em b ers

. Th es e al l eg at i on s

s u p p ort h i s h av i n g st an d i n g t o d i s p u t e t h e s et t l em en t an d cl as s cert i fi cat io n

. S ee Kei l

v

. L o p e z , 8 6 2 F.3 d 6 8 5, 6 9 9 (8 t h Ci r. 2 0 17 ) (co ncl u d in g an o b j ect o r h ad s t an d i n g
b ecau s e “ i f t h e s et t l em en t ag reem en t ei t h er ad ju s ted reco v ery to acco un t fo r t h e
rel at i v e st ren g th o f al l fi ft y s t at es ’ co n s um er p ro t ect i o n l aws o r s i m p l y p ro v i d ed

g reat er reco v ery fo r cl as s m em b ers

. . . , [t h e o b

ject o r] p res u m ab l y w o u l d recei v e

m o re m o n ey ”).

W e n eed n o t ad d res s s t an d i n g wi t h res p ect t o a rev i ew o f t h e fee award b ecau s e

“ t h e reas on ab l en es s o f t h e at t o rn ey s ’ fees i s wi th in t h e o v eral l s u perv i s o ry rev i ew o f

t h i s co u r t .” G r u n in v. In t’l Ho u s e o f Pa n ca kes

, 51 3 F.2 d 1 1 4

, 1 2 7 n .1 3 (8 t h Ci r.

1 9 7 5 ). M i g l i acci o arg u es t h at a n y red u ct i o n i n at t o rn ey s ’ fees s h o u l d i nu re t o t h e
b en efi t o f cl as s m em

b ers rat h er t h an d efau l ti n g t o t h e t erm s o f t h e s et t l em en t

, wh i ch

-6

-p ro v id e t hat n et fu n d s rem ai n i n g i n t h e Co m m o n Fu n d wi l l b e d i s t ri b u t ed t o cy p r es
reci pi en ts

. Becau s e h e m ad e t h i s arg u m en t b el ow, we m ay a d d res s wh et h er t h e
d i s t ri ct co u rt erred b y

refu s in g h i s req u es t

.

B. S u b st a nt i ve Cl a i m s

1

. S et t l emen t Ap p ro va l

W e rev i ew a d i s t ri ct co u rt ’s o rd er ap p ro v i n g a cl as s act i o n s et t l em en t fo r an
ab u se o f d i s cret i o n. Ma r

s h a l l v. Na t ’l Fo o t b al l Lea g u e , 7 8 7 F.3 d 5 0 2

, 5 0 8 (8 t h Ci r.

2 0 1 5 ). In s o d o i ng , “ we as k wh et h er t h e d is tri ct co u rt co n s i d ered al l rel ev an t fact o rs , wh et h e r i t was s i gn ifi can t l y i n fl u en ced b y an i rrel ev an t fact o r, an d wh et h er in

wei g h i ng t h e fact o rs i t co m m i t t ed a cl ear erro r o f ju d g m en t.” Id . (cl ean ed u p ).

M i g li acci o as s ert s t h at t h e n at i o n wi d e cl as s co n s i s t s of ap p ro x i m at el y 3

. 5

m i l l io n m em

b ers

. He d eri v es th i s fi g u re fro m es t i m at es m ad e p ri o r t o t he cl as s n o t i ce

p eri o d

. In d es i g n i ng a n ot ice pl an , t h e cl as s ad m i n i st rat o r u s ed m ark et res earch d at a

t o “ es ti m at [e] t h at t h e cl as s s ize [was ] ap p ro x i m at el y 3 .5 m i l l i o n p ers o n s an d t h at a

t arg et au d i en ce o f 2 0 .0 8 m i l l i o n p ers o n s wh o h av e us ed weed k i ll er p ro d u c t s

i n cl u d e[d ] t h e m em

bers o f t h e cl as s .” M em

. i n Su p p o rt o f Co n s en t M o t . fo r Prel i m

. Ap p ro v al

, At t ach

. 3 at 4

, Ra wa v. Mo n s a nt o Co

. , N o

. 4 : 1 7 -cv -0 1 2 5 2 -AGF (E.D. M o.

Oct

. 4, 2 01 7 ), ECF No

. 3 2 -3

. Th e d i s t ri ct co u rt d i d n o t ad d res s t h i s fi g ure i n i t s fi n al

ap p ro v al an al y s i s

. In s t ead

, it ad o p t ed t h e p l ai n t i ffs ’ reas o n i n g fo l l o w i n g t h e cl ai m s

p eri o d : “ [B] ecau s e 1 3 % o f t h e p ro d u ct was cl ai m ed b y 7 0 ,3 6 0 m em b ers , t h e ev i d en ce

s u g g es t s t h e Cl as s co n t ai n s ab o u t 5 4 1

, 0 0 0 m em b ers .” Pl s .’ Rep l y i n Su p p

. o f M o t

.

an d Res p

. t o Ob

j. at 1 n .2

, Ra wa v. Mo ns a n t o Co

. , No

. 4 : 1 7 -cv -0 1 2 52 -AGF (E.D. M o. Ap r. 3

, 2 0 1 8 ), ECF No

. 4 9. Th e d i s t ri ct co urt co n d uct ed it s fai rn es s an al y s i s u s i n g

t h es e fi g u res

. Th e d i s t ri ct co urt co m m en d ed t h e s et t l em en t ’ s fu ll co m p en s at o ry

reco v ery fo r cl ai m an ts an d em ph as i zed t h e co ns i d erab ly h i g h cl ai m s rat e. S ee Kei l

, 8 6 2 F.3 d at 6 9 7 (o b s erv i n g “ t h at a cl ai m rat e as l o w as 3 p ercen t i s h ard l y u n u s u al in

co n su m er cl as s act i o ns an d d o es n o t s u g g es t u n fai rn es s ”).

-7

-“ Th e s i n g l e m o s t im p o rt an t fact o r i n d et erm i n i n g wh et h er a s et t l em en t i s fai r,

reas on ab l e, an d ad eq u at e i s a b al an ci n g o f t h e s t ren g th of t h e p l ai n t i ff’ s cas e ag ai n s t

t h e t erm s o f th e s et t l em en t .” Va n Ho rn v. Tr i ckey

, 8 4 0 F.2 d 6 0 4

, 6 0 7 (8 t h Ci r. 1 9 8 8 ).

M i g l iacci o co nt en d s th at t h e co u rt ’ s u s e o f “ g ro s s l y i n accu rat e fi g u res ” l ed i t to

m i s ju d g e th e ov eral l val u e o f t h e s et t lem en t

. A p p el lan t ’ s Br. at 1 3

. H o wev er,

M i g l iac c i o f

a i l s t o s h o w t h at t h es e fi g ures are fl awed an d i s u n co n v i n ci n g t h at t h e

co u rt s h o u ld h av e b as ed i t s an al y s i s o n p re-n o ti ce m ark et res earch es t i m at es rat h er

t h an a s im p l e, ev i d en ce-b as ed cal cu l at i o n

. So

, we ho l d t he d i s t ri ct co urt di d n o t ab u s e

i t s d i s cret i o n i n g ran t i n g fi n al ap p ro v al o f t h e s et t l em en t.

2

. Cl a s s Cer t i

f i ca t i o n

We rev i ew t h e d is t ri ct co u rt ’ s d eci s i on t o cert i fy t h e s et t l em en t cl as s f o r a n
ab u se o f d i s cret i o n. In r e Ta r g et Co r p . Cu s t omer Da ta S

ec. Br ea ch Li t ig

. , 8 9 2 F.3 d

9 6 8 , 9 7 3 (8 t h Ci r. 2 0 1 8 ).

M i g l i acci o arg u es th at cl as s co u n sel b ecam e i n ad eq u at e du e t o co n fl i ct s t h a t

aro s e fro m t h e t ran s fer an d c o n s o l i d at i o n o f t h e Cal i fo rn i a cl as s

. He co n t en d s t h e

t ran s f e r a n d co ns o l i dat i o n u lt i m at el y “ d i l u t ed Cal i fo rn i a cl as s m em b ers ’ cl ai m s .”
Ap p el l an t ’ s Br. at 4

. Mi g l i acci o d ev o t es m u ch o f hi s arg u m en t t o ward s s h o wi n g t h at

t h e Cal i fo rn ia cl as s m em

b ers recei v ed m

u ch l es s p er m em

b er u n d er t h e n at i o n wi d e

s et t l em en t wh en co m

p ared t o a h y

p o t h et ical reco v ery t h at t h ey wo u l d hav e recei v ed

ab s en t co n s o l i dat i o n

. 3 He al s o s eek s di s cl o s u re o f t h e et h i cs o pinion t h at cl as s co u n s el

s o u g ht pri o r t o t ran s fer. He do es n ot

, h o w ev er, n am e a s p eci fi c p o t en ti al co n fl i ct t h at

co n cern s h i m

.

3 M i g l i acci o ’ s cal cu l at i o n s a r e p r e m is ed o n a n um b er of es t i m at es : t h e p ren o t i ce es t i m at ed n at i o n wi d e cl as s s i ze of 3 .5 m i l l i o n m em b ers ; a s i m il arl y es t i m at ed
Cal i fo rn i a cl as s s i ze; an d an as su m p ti o n t h at t h e Cal i fo rn i a cl as s wo u l d “ ach iev e[] t h e

s am e 30 % reco v ery o f es t i m at ed d am ag es as th e $ 2 1 .5 m i l li o n s et t l em en t rep res en t s

o f t h e $7 0 .5 m il l i o n es t i m at ed d am ag es fo r t h e n at i o n wi d e cl as s .” Ap p el l an t ’ s Br. at
2 1

.

-8

-An y Cal i fo rn i a cl as s m em b er wh o su b m it t ed a v al id cl ai m reco v ered a t

l ea s t

1 0 0 p ercen t o f h is o r h er al l eg ed o u t

- o f

- p o ck et d am ag es u n d er t h e nat i o n wi d e

s et t l em en t

. Th e s e t t lem en t ’ s p er-u n i t p ay m en t to cl ai m an t s i s h i g her th an wh at

p l ai n t i ffs s o u g h t t h ro u g h th e dam ag es m o d el i n t h e ab an d o n ed Cal i fo rn i a cas e. Ev en

i f p u n i t i v e d am ag es are av ai lab l e t o s u cces s fu l l i t i g an t s u n d er Cal i fo rn ia co n s u m er

p ro t ect i o n l aws , “ th e o u t co m e o f t h e l i t i g at i o n was far fro m cert ai n.” Kei l

, 8 6 2 F.3 d

at 6 9 6

. A n at i o n wi d e s et t l em en t n eed n o t acco u n t fo r d i fferen ces i n s t at e l aws

. Id

. at

7 0 0

. M oreo v er, “ a s et t l em en t i s a p r o d u ct o f co m p ro m i s e an d t h e fact t h at a

s et t l em en t p ro v i d es o n ly a p o rt i o n o f th e p o ten t i al reco v ery do es no t m a k e s u c h

s et t l em en t u n fai r, un reas on ab l e or ina d e qua te

. ” I d

. a t 696 ( inte r

na l qu o t at io n o m i t t ed ).

On t h i s reco rd

, M i g l i a c c i o has fai l ed to s h o w h o w t he Cal i fo rn i a cl as s m em b ers ’

cl ai m s were d i l ut ed

.

He al s o m ai n t ai n s t h at t h e t ran s fer an d co n s o l i d at io n creat ed a co n fl ict fo r cl as s

co u ns el

. Th o u g h h e has n o t as s ert ed p reci s el y wh at t h a t co n fl i ct i s , h e s ay s “ cl as s

co u ns el reco g n i zed th e co n fl ict ,” as ev id en ced by t h ei r d e ci s i o n t o co n s ul t wi t h an

et h i cs ex p ert b efo re as k i n g th e Cal i fo rn i a co urt t o t ran s fer t he cas e. Ap p el l an t ’ s Br.

at 2 2 . Th e d i s t ri ct co urt ad eq uat el y ad d res s ed h is co n cern s at t h e fai rn es s h eari n g :

[T] h e fact t h at an at t o rn ey co n s u l t s s om eo n e t o m ak e s u re t h at t h ey are

o n s o l id g ro u n d i s n o t an ad m i s s i o n of a co n fl ict

. Th at i s a l awy er tak i n g
p ru d en t s t ep s wh en t hey h av e an o bl i gat i o n t o a cl as s

. . . . I t ak e t h at as

a s i g n o f res p o ns i bl e beh av i o r b y cl as s co u n sel an d n o t s o m e ad m i s s i o n
t h at a co n fl i ct ex i s t s

.

Tr. o f Fai rn es s Hr’ g at 5 8

, Ra wa v. Mo n s a n t o Co

. , No

. 4: 1 7

- c v

- 0 1 2 5 2 -AGF (E.D.

M o . M ay 1 4 , 2 0 1 8 ), ECF No

. 5 7

.

M i g li acci o h as fai l ed t o s h o w h o w th e Cal i fo rn i a cl as s m em b e r s h av e b een
d i s ad v an t ag ed b y t h ei r i n cl u si o n as m em bers o f t h e n at i o n wi d e cl as s

. W e fi n d n o

-9

-ab u se of d i s cret i o n i n t h e d i st ri ct c o u rt ’ s refu s al t o o rd er p ro d u ct io n of t h e ex p ert

et h i cs o p i n i o n

.

3

. At t o r n eys ’ Fee Awa r d

W e rev i e w t h e d i s t ri ct co u rt ’ s award o f at to rn ey s ’ fees fo r an ab u s e o f

d i s cret i o n

. Pet r o vi c v. A mo co Oi l C o

. , 2 0 0 F.3 d 1 1 40

, 1 1 5 6 (8 t h Ci r. 1 9 99 ). Th e
d i s t ri ct co u rt h as d i scret i o n to u s e ei t h er a l o d es tar o r p ercen t ag e-o f-t h e-fu n d m et h o d

i n d et erm i n i n g an ap p ro p ri at e reco v ery , “ a nd the ultim a t e reas on ab l en es s o f t h e award

i s ev al uat ed b y co ns i deri n g rel ev an t fact o rs fro m t h e t wel v e fact o rs l i s ted i n Jo h n so n

v. Ga

. Hi g h wa y E x p r e s s
, In c. , 4 8 8 F.2 d 7 1 4, 7 1 9

– 2 0 (5 th Ci r. 1 9 7 4 ).” In r e Ta r g et

Co r p

. , 8 9 2 F.3 d at 9 7 7 (cl ean ed u p ). Th e di s t ri ct co u rt has t h e b u rd en o f “ p ro v i d [i n g ]

a co nci s e b u t cl ear ex p l an at i o n o f i t s reas o n s fo r t h e fee award

. ” Id

. ( i n t e r n a l

q u o t at i o n o m i t t ed ). “ W e g i v e s u b st an t i al deferen ce t o a d i s t ri ct co urt ’ s
d et erm i n at i o n s, i n l i g h t o f t h e d i s t ri ct co u rt ’ s s u p eri o r un d ers t an d i n g o f t h e

l i ti g at i o n .” In r e Gen et ica l l y Mo d i f i ed Ri ce Li t i

g

. , 7 64 F.3 d 8 6 4

, 8 7 1 (8 t h Ci r. 2 0 1 4 ).

Cl as s co un s el req u es ted a fee award t o tal i n g 3 3 p ercen t o f t h e Co m m o n Fu n d.

Aft er co n s i d eri ng t h e Jo h n so n fact o rs , th e p art i es ’ arg u m en t s , t h e a t t o r n ey b i l l i n g

reco rd s , an d t h e rel ev an t cas e l aw, t h e d i st ri ct co urt det erm in ed t h at an award o f 2 8

p ercen t o f t h e Co m

m o n Fu n d was ap p r o p r i a t e

. Th e co urt ack n o wl ed g ed t hat “ [t ] h e

co rres p o n d i n g l od es t ar m ul t i p l i er o f 5 .3 i s s t i l l q u it e h i g h co m pared t o s i m i l ar cas es

i n t h i s ci rcu i t ,” b u t i t co n cl u d ed i t was n o t un reas o n ab l e i n l i g ht of t h e res u l t s

o b t ai n ed

. Ra wa v. Mo n s a n t o Co

. , No

. 4 : 1 7 -cv -0 1 2 5 2 0 -AGF, 2 01 8 W L 2 3 8 9 0 4 0 , at

* 9 (E.D. M o

. M ay 2 5

, 2 0 1 8 ). Th e d i s t ri ct co u rt d eci ded th at a g en ero u s award was

warran t ed b as ed o n “ t h e n o vel t y an d u n cert ai n t y o f t h e cl ai m s , t h e s k i l l req u i red by

co u ns el t o p erfo rm t h e wo rk p ro p erl y , es p eci al l y o n a n at io n wi d e b as i s , t i m e l i m i t s

i m p o s ed i n t h e [ C a l i f

o r ni a cas e]

, t h e ex p eri en ce an d ab i l i t y o f t he at to rn ey s , an d

s i gn i fi can t l y , t he l arg e am o un t i n v o l v ed an d ex cel l en t res u l t ach i ev ed .” Id

. T h e co u rt

al s o ci ted cl as s co un s el ’ s gen eral effi ci en cy as wel l as t h e effect i v en es s o f t h e n o t i ce

p ro ces s t o ju s ti fy t h e award

.

-1 0

-M i g li acci o u ses t h e s am e es t i m at ed cl as s s i ze an d cl ai m s rat e fi g u res ag ai n to

d i s p u t e t h e q u al it y o f t h e s et t l em en t ’ s t erm s. He t ak es i s s ue wi t h t h e d i s t ri ct co urt ’ s
wei g h i ng o f t h e Jo h n s o n fact o rs

. He al s o d i s p u t es cert ai n ho u rs i n t h e b i l l in g reco rd s

s u b m i t t ed b y cl as s co u ns el

.

Th e fee award i n t h i s cas e i s in l i n e wi t h o t h er award s in t h i s ci rcu it

. S ee Hu yer

v

. B u ckl ey , 8 4 9 F.3 d 3 9 5

, 3 9 9 (8 t h Ci r. 20 1 7) (“ In d eed

, co u rt s h av e freq u e n t l y
award ed at t o rn ey s’ fees ran g i n g u p t o 3 6 % i n cl as s act i o n s .”). An d wh i l e t h e 5

. 3

l o d es t ar m

u l t ip l i er i s hi g h

, i t d o es n o t ex ceed t he b o u n d s o f reas o n ab l en es s

. See, e.g

. , In r e Ch a r t er Co mmc’n s
, In c., S ec. Li t i g

. , No

. 4 : 0 2 -cv -1 1 8 6 -CAS, 2 0 0 5 W L

4 0 4 5 7 4 1

, at * 1 8 (E

. D

. M o

. J u n

. 3 0

, 2 0 05 ) (fi n d in g reas o n ab l e a 5 .6 1 cro s s -ch eck

m u lt i p l ier an d n o t i n g t h at “ [t ] o o verl y em p h as i ze t h e am o u n t o f h ou rs s p e n t o n a

co n ti n g en cy fee cas e w o u l d p en al i ze co u n s e l fo r ob t ai ni n g an earl y s et t lem en t an d

wo u l d d i s t ort t he v al ue o f th e at t o rn ey s’ serv i ces ” (i nt ern al q u o t at i o n o m i t ted )). Th e
d i s t ri ct co u rt ad eq u at el y ex p l ai n ed t h e reas o ns fo r i t s d eci s i o n, an d t h e res u l t i s n ot

o b v i o u s l y u n reas o n ab l e i n l i g h t o f o u r p ri o r cas e l aw.

M i g li acci o p res en t ed h i s b i l l i n g reco rd di s p u t es t o th e d i s t r i c t c o urt at t h e

fai rn es s h eari n g

. In i t s o rd er, t h e d i st ri ct co u rt s t at ed th at it h ad tak en b ot h t h e p art i es ’

a r g u m e n t s an d t h e s u b m i tt ed b i l l i n g reco rd s un d er “ carefu l co n s i d erat i o n ” i n
d et erm i n i n g t h e fee award

. Ra wa , 2 0 1 8 W L 23 8 9 0 4 0

, at *9

. W e fi n d th at th e d i s t ri ct

co u rt “ fu l fi l led it s res p o n s i b i l i t y o f p ro v i d i n g a co nci s e b u t cl ear ex pl an at i o n o f i t s

reas on s f o r t h e fee award

. ” In r e Gen et i ca ll y M o d i f i ed Ri ce Li t i

g

. , 7 6 4 F.3 d at 8 7 2
(i nt ern al q u o t at i o n o m it t ed ). M i g l i acci o h as fai l ed t o s h o w t h at t h e co urt ’ s d eci s i o n

am ou n t ed t o an ab u s e o f d i s cret i o n

.

4 . Cy Pres D i s t r i b ut i o n
Cl as s co u n s el req ues ted a f ee award o f 3 3 p ercen t o f th e Co m m o n Fu n d

, o r $ 7 ,1 6 6 ,6 6 6

. Th e d is t ri ct co urt i n s t ead award ed 2 8 p ercen t, o r $ 6 ,0 2 0 ,0 0 0

. M i g l i acci o

arg u es t h e d i fferen ce b et ween th es e am o un t s s h o u l d b e d i s t ri bu t ed to cl as s m em b ers

-1 1

-i n s t ead of t o cy p r es b en efi ci ari es as co n tem p l at ed b y t h e t erm s o f t he s et t l em e nt

ag reem en t

. Es s en t i al l y , h e req u es t s t hat t h e d i s t ri ct co u rt red raft t h e t erm s o f t h e

ag reem en t t o al l o w fo r an al t ern at i v e m et h o d o f fu nd d i s t ri b u t i o n fo r t he am o u n t i n

q u es ti o n

.

Di s t ri ct co u rt s d o n o t rewri t e s et t l em en t ag reem en t s

. “ [T] h e p o wer to ap p ro v e

o r reject a s et t l em en t n eg o ti at ed b y t h e p art i es b efo re t ri al d o es n ot au t h o ri ze t h e co u rt

t o req u i re t he p art ies t o accep t a s et t lem en t t o wh i ch th ey h av e n o t ag reed .” Eva n s v. Jef f D.

, 4 7 5 U.S. 7 1 7, 72 6 (1 9 8 6 ). Co n t r a r y t o M i g li acci o ’ s ch aract eri zat i o n s o n

ap p eal

, t h e co u rt d i d n o t o rd er t h e cy p res d i st ri b u t i o n o f t h e di fferen ce i n fees

— t h e

t erm s o f t h e s et t lem en t ag reem en t d i d

. “ [W ] h il e t h e s et t l em en t ag reem en t m u s t g ai n

t h e ap p ro v al o f t h e d i s t ri ct ju d g e, o n c e ap p ro v ed it s t erm s m u s t b e fo l l o wed b y t h e

co u rt an d t h e p art ies al i ke.

. . . Th e t erm s of t he s et t l em en t ag reem en t are al way s t o
b e g i v en co n t ro l li ng effect .” Kl i er v. El f At o ch em N. Am., In c. , 6 5 8 F.3 d 4 6 8

, 4 7 5

– 7 6
(5 t h Ci r. 2 0 1 1 ) (fo o t n o t e o m i t t ed ). Acco rd i n g ly , we fi nd n o erro r.

III. Co n cl u s i o n

W e affi rm

t h e ju d gm en t o f t h e d i s t ri ct co u rt

.

__ _ _ _ _ __ _ _ __ _ _ __ _ __ _ _ _ _ _ __ _ _ _ _

-1 2

-