ClassActionBlawg.com

According to an editorial submitted to the Newport Beach & Costa Mesa newspaper Daily Pilot, a California state senator has introduced legislation that would encourage but not require judges in class action settlements to withhold a “reasonable portion” of an attorneys fee award until an acceptable number of class members are identified.  Senator Tom Harman, of the 35th District, says that his bill is intended to combat the problem of judges awarding excessive percentages of settlement funds to nonparty charities because class members are not be identified.  Senator Harman says that this practice is currently being followed by Judges in Alameda County, California and that “it seems to be working well.”  It is unclear whether the payment of the withheld portion of the fee would be contingent on proof that the class members are given notice or whether it would instead be based on payment to class members.  It is also unclear from the article what percentage notice or participation would be required to justify the payment of the withheld portion of the fee.  Here is a link to the editorial: http://www.dailypilot.com/articles/2008/03/15/opinion/dpt-commentary031508.txt