Lesevic v. Spectraforce

Background

Class Counsel moved for an award of attorneys’ fees, reimbursement of litigation expenses, and a service award for class representative Paul Lesevic. The case involved allegations concerning minimum wages, meal periods, and other amounts allegedly owed. The parties reached a $600,000 non-reversionary common-fund settlement.

Class Counsel requested 33% of the settlement fund, or $200,000, in attorneys’ fees; $11,445.78 in expenses; and a $10,000 service award for Lesevic. The court held a hearing on April 8, 2021.

Attorneys’ Fees

For common-fund cases, the court explained that 25% of the fund is generally a benchmark for a reasonable fee, although the amount may vary based on the circumstances. The court used the percentage-of-recovery method and cross-checked the result using the lodestar method, which multiplies reasonably expended hours by a reasonable hourly rate.

The court found that Class Counsel’s quick settlement, success in a discovery dispute, moderate litigation risk, and reasonable result for the class supported a moderate increase above the 25% benchmark. The $600,000 fund was approximately 3.4 times the actual damages valuation cited by Class Counsel, although it represented about 7% of the class’s maximum potential recovery. Class members were expected to receive about $327 on average, without submitting claim forms.

The court rejected the requested 33% fee. It found that the lodestar was inflated by excessive total hours, senior attorneys’ billing for lower-level tasks, duplicative associate work, excessive review of court orders and the docket, and time spent preparing the fee motion. The court reduced the estimated $238,717 lodestar by $58,832.50, resulting in an adjusted lodestar of $179,884.50. That calculation supported the reasonableness of a 28% fee award.

The court awarded Class Counsel $168,000, equal to 28% of the $600,000 settlement fund.

Expenses

The court granted Class Counsel’s request for reimbursement of $11,445.78 in expenses. Although Class Counsel could not fully explain a $1,560 deposition-cancellation fee, the court found the record unclear and treated that cost as reimbursable. The court also found reasonable the listed mediation fees, expert consulting on damages, filing fees, legal research costs, court reporting, and miscellaneous expenses.

Service Award

The court reduced Lesevic’s requested $10,000 service award to $5,000. It noted that Lesevic responded to written discovery and produced 131 pages of documents, but did not attend mediation or sit for a deposition. The court also found that he did not face additional financial or reputational risk from bringing this case, in part because he had previously sued Defendant in three other federal and state forums identified in the opinion.

Disposition

The court granted in part and denied in part Class Counsel’s motion for attorneys’ fees. It ordered that $168,000 in fees and $11,445.78 in expenses be paid to Class Counsel, and that a $5,000 service award be paid to Class Representative Paul Lesevic.