Following Stanger v. China Electric Motor, Inc. (9th Cir. 2016) 812 F.3d 734, this decision reverses another fee award by Judge Manuel Real which slashes class counsel’s compensation following a common fund settlement.  While Real did not abuse his discretion in choosing to compute a fee award on a lodestar basis rather than a percentage of the recovery, his terse order slashing the claimed fees by 70% did not adequately explain why he denied compensation for many hours, reduced the hourly rate, made no adjustment for risk, and did not consider other Kerr factors in making the award.

Ninth Circuit Court of Appeals (Smith, M., J.); May 11,2016; 2016 WL 2731587