Opinion ID: 2971876
Heading Depth: 3
Heading Rank: 2

Heading: Additional Arguments by Lopez, Hodes

Text: Lopez, Hodes makes two additional arguments: first, that the court erred in its assessment of the common benefit value of the firm’s work, and second, that the court failed to articulate properly the basis for its reduced award. The firm contends that its work in liability discovery against Sulzer prior to the consolidation of the action for multi-district litigation inured to the benefit of the class, because it was a material force in causing the settlement to be achieved, and was improperly discounted by the district court. The firm claimed a total of $1,810,695.20, based on 4,355 hours of work. The district court found that fifty percent of those hours were reasonable, and awarded a total fee of $905,347.60. In its specific summary for this firm’s attorney fee award, the district court explained its discount of the firm’s pre-litigation efforts, stating that (1) “virtually all of the hours claimed by attorney Lopez were spent primarily for the benefit of a given individual plaintiff, or a smaller group Nos. 03-4155/4156 In re Sulzer Orthopedics, Inc. Page 4 of plaintiffs, and not the entire class; (2) many of the hours listed seemed excessive for the task claimed; and (3) much of the time claimed for participating in conference calls, proofreading, and attending depositions, even if not overstated, did not yield a substantial common benefit.” For these reasons, the court reduced the “hours worked” factor of the firm’s lodestar calculation, as it did for thirty-three of the fifty-seven fee award applicants. For each of the fee applicants, including Lopez, Hodes, the court’s analysis was thorough, as it explained: The Court has spent a significant amount of time reviewing in detail the applications and supplements, the supporting documentation, the advice of the Common Benefit Attorney Fee Committee, and the objections and responses thereto. These materials fill about seven banker’s boxes. In several instances, the Fee Committee corresponded with counsel, asking for an explanation of a claimed expense or fee. In a few instances, the Court wrote its own letters to the applicants, asking for clarification or explanation of the requests, or expressing concern about apparent violations of the Court’s Guidelines. With the help of the Common Benefit Attorney Fee Committee, the Court examined virtually every entry listed in every Fee Application. In addition, the district court, in a thoroughly reasoned order, used the discretion granted it under Rawlings to determine an appropriate methodology and applied the Rawlings factors to ascertain a reasonable fee award. The district court's award of attorney fees in common fund cases need only be reasonable under the circumstances. Rawlings, 9 F.3d at 516. After careful scrutiny of the alleged errors referenced by the firms, we conclude that the district court did not abuse its discretion.