Class Action – Coupon Settlement

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Civil

7^th Circuit Court of Appeals

Officials: FLAUM, WILLIAMS, and HAMILTON, Circuit Judges

Class Action – Coupon Settlement

Nos. 13-3264; 13-3462; 14-2591; 14-2602; 14-2495

In Re: Southwest Airlines Voucher Litigation

Class Action Fairness Act allows district court to award class counsel an attorney fee based on the lodestar method rather than the value of the redeemed coupons.

“Under Markow’s approach, also adopted by the Ninth Circuit majority in HP Inkjet, subsection (c) seems to become surplusage. If subsection (a) requires use of percentage-of-coupons-used for any fee award based on coupons, and if subsection (b) requires use of lodestar for non-coupon relief, as Markow argues, that leaves nothing for subsection (c) to do other than repeat subsection (a) and (b). “[T]he canon against surplusage is strongest when an interpretation would render superfluous another part of the same statutory scheme.” Marx, 133 S. Ct. at 1178. The approach we adopt, also taken by the district court and by Judge Berzon in HP Inkjet, gives all three subsections different roles to play. Subsection (a) prohibits basing a percentage-of-recovery fee on the face value of all coupons made available. Subsection (b) says that lodestar is the only permissible alternative to percentage-of-coupons-used. And subsection (c) allows, though does not require, a blend of the two methods when a coupon settlement also provides some equitable or cash relief”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.