66,667% Contingency Fee
The settlement discussed in this space July 17 "” in which lawyers nabbed more than $25 million in fees and expenses, while fewer than 100 consumers redeemed Ford coupons worth $37,500 "” was covered by the Associated Press last week, which stirred outrage in many quarters [Krauss/PoL, Greenfield, Cal Biz Lit]. As Cal Civil Justice notes, the settlement was purportedly on behalf of owners who suffered no rollover or other mishap. Instead, it sought damages for losses in the vehicle's resale value due to adverse publicity, a nicely circular theory, since the adverse publicity was in good measure propelled by various allies of the plaintiff's bar.
Doug:
I've always liked the idea that attorneys should receive the the same type of payment as plaintiffs. If the plaintiffs get $37,500 in coupons, give the attorneys $25M in coupons.
August 10, 2009, 1:44 pmMichael:
Not mentioned is that in both the cap and trade bill and the health care bill, whole new classes of people are opened up to suits by trial lawyers. I doubt the CBO or other groups have even begun to asses the amount of money to be taken from the economy by the lawyers.
August 10, 2009, 7:22 pmfeeblemind:
Legalized theft. That is all you can call it.
August 11, 2009, 9:07 am