Judge Nixes $360-An-Hour Fees For ‘Associates’ Who Looked More Like Temps
A federal judge whacked $10 million from the fee request of a class-action firm that negotiated a $335 million settlement of mortgage-backed securities claims against Bank of America, saying it was based on the work of short-term “associates” who appeared to function as contract attorneys, reports Forbes.
In his order, U.S. District Judge William Pauley awarded $41.3 million in fees and $1.4 million in expenses for their work on the case, or about 12% of the sum they negotiated for their clients.
The 26 Barrack associates, 16 of whom were labeled “temporary associates hired exclusively on the BOA case, “represented 40% of the billable hours and $10.8 million in fees at $362.50 an hour — well above the prevailing rate for contract attorneys of less than $50 an hour,” writes Forbes’ Daniel Fisher.