Opinion ID: 488034
Heading Depth: 3
Heading Rank: 4

Heading: Kraft & Hughes

Text: 65 Kraft & Hughes, a New Jersey firm peripherally involved in the litigation, challenges the district court's award. The court awarded the firm $2,425 in fees and $3,935.48 in expenses. The firm now argues that this is no more than the out-of-pocket costs of its involvement and substantially undercredits its contribution to the litigation. Moreover, the firm contends that it was improper for the district court to abrogate the contingency fee agreements that the firm had with a number of class members. 66 Kraft & Hughes concedes in its presentation to this court that it cannot establish the factual findings of the district court to be clearly erroneous. Consequently, the firm bases its appeal primarily on the ground that its fee agreements with its clients, as a matter of law, should not have been abolished. We find this argument, however, to be without merit. 67 It is well established that a district court, pursuant to its rulemaking authority or on an ad hoc basis, may review a contingency fee agreement. Boston and Maine Corp. v. Sheehan, Phinney, Bass & Green, P.A., 778 F.2d 890, 896 (1st Cir.1985); Dunn v. H.K. Porter Co., 602 F.2d 1105, 1108 (3d Cir.1979). When dealing with an equitable fund action, the court has an even greater necessity to review the fee agreement for [Fed.R.Civ.P. 23(e) ] imposes upon it a responsibility to protect the interests of the class members from abuse. Dunn, 602 F.2d at 1109. That is exactly what the district court did here in requiring counsel, prior to receiving fees from the settlement, to certify that he or it had retained no fees or expenses from any class members. We find no basis to overrule the district court's decision in this regard.