Fed. Sec. L. Rep. P 99,573, 97 Cal. Daily Op. Serv. 8728, 97 Daily Journal D.A.R. 14,147 J. Phillip Williams, & Herbert Eisen, Tr. for Margaret M. Eisen Fam. Trust, Plaintiff-Intervenor v. Mgm-Pathe Commc'ns Co. Pathe Commc'ns Corp. Credit Lyonnais Bank, Credit Lyonnais Bank Nederland N v. Giancarlo Parretti, 129 F.3d 1026 (9th Cir. 1997). · Go Syfert
Fed. Sec. L. Rep. P 99,573, 97 Cal. Daily Op. Serv. 8728, 97 Daily Journal D.A.R. 14,147 J. Phillip Williams, & Herbert Eisen, Tr. for Margaret M. Eisen Fam. Trust, Plaintiff-Intervenor v. Mgm-Pathe Commc'ns Co. Pathe Commc'ns Corp. Credit Lyonnais Bank, Credit Lyonnais Bank Nederland N v. Giancarlo Parretti, 129 F.3d 1026 (9th Cir. 1997). Cases Citing This Book View Copy Cite
“we conclude that the district court abused its discretion by basing the fee on the class 10 members' claims against the fund rather than on a percentage of the entire fund or on the 11 lodestar.”
87 citation events (70 in the last 25 years) across 21 distinct courts.
Strongest positive: Lonardo v. Travelers Indemnity Co. (ohnd, 2010-07-21)
Treatment trajectory · 1997 → 2026 · click a year to view as-of
1997 2011 2026
Top citers, strongest first. 19 distinct citers. How cited ↗
examined Cited as authority (verbatim quote) Lonardo v. Travelers Indemnity Co. (3×) also: Cited as authority (rule), Cited "see, e.g."
N.D. Ohio · 2010 · quote attribution · 1 verbatim quote · confidence high
we conclude that the district court abused its discretion by basing the fee on the class members' claims against the fund rather than on a percentage of the entire fund or on the lodestar.
discussed Cited as authority (quoted) Taylor v. Shutterfly, Inc.
N.D. Cal. · 2021 · quote attribution · 1 verbatim quote · confidence low
we conclude that the district court abused its discretion by basing the fee on the class 10 members' claims against the fund rather than on a percentage of the entire fund or on the 11 lodestar.
discussed Cited as authority (quoted) Carlotti v. ASUS Computer International
N.D. Cal. · 2020 · signal: see · quote attribution · 1 verbatim quote · confidence high
we conclude that 26 the district court abused its discretion by basing the fee on the class members' claims against the 27 fund rather than on a percentage of the entire fund or on the lodestar.
discussed Cited as authority (rule) In Re Volkswagen & Audi Warranty Extension Litigation
D. Mass. · 2011 · confidence medium
See, e.g., Masters v. Wilhelmina Model Agency, Inc., 473 F.3d 423, 436-37 (2d Cir.2007); Waters v. Int’l Precious Metals Corp., 190 F.3d 1291, 1294-95 (11th Cir.1999); Williams v. MGM-Pathe Commc’ns Co., 129 F.3d 1026, 1027 (9th Cir.1997).
cited Cited as authority (rule) Hartless v. Clorox Co.
S.D. Cal. · 2011 · confidence medium
Co., 129 F.3d 1026, 1027 (9th Cir.1997). .
discussed Cited as authority (rule) McKinnie v. JP Morgan Chase Bank, N.A. (2×) also: Cited "see"
E.D. Wis. · 2009 · confidence medium
An allocation of fees by percentage should therefore be awarded on this basis of the total funds made available, whether claimed or not.”); Waters v. Int’l Precious Metals Corp., 190 F.3d 1291, 1295-98 (11th Cir.1999) (upholding an attorney fee award based on the entire settlement fund though a portion reverted to the defendant); Williams v. MGM-Pathe Communications Co., 129 F.3d 1026, 1027 (9th Cir.1997) (holding that the district court abused its discretion by awarding attorneys’ fees as one-third of the $10,000 claimed against the common fund rather *816 than awarding one-third of the…
discussed Cited as authority (rule) Chun v. Bd. of Trustees of ERS
Haw. · 2000 · confidence medium
See, e.g., United States v. 8.0 Acres of Land, 197 F.3d 24, 33 (1st Cir.1999) (observing that “[t]he trial court enjoys ‘extremely broad’ latitude in determining the appropriate shares of the common fund, and may calculate such an award either on the basis of a reasonable percentage of the fund, or using a lodestar method”); Savoie v. Merchants Bank, 166 F.3d 456, 461 (2d Cir.1999) (assessing the district court’s application of the lodestar method, rather than the percentage approach, under an abuse of discretion standard); Williams v. MGM-Pathe Communications Co., 129 F.3d 1026, 102…
discussed Cited as authority (rule) Waters v. International Precious Metals Corp.
11th Cir. · 1999 · confidence medium
Moreover, in Williams v. MGM-Pathe Communications Co., 129 F.3d 1026 (9th Cir.1997) (per curiam), a class action re-versionary fund case, the Ninth Circuit held that the “district court abused its discretion by basing the fee on the class members’ claims against the fund rather than on a percentage of the entire fund or on the lodestar.” Id. at 1027 (footnote omitted).
discussed Cited as authority (rule) Waters v. International Precious
11th Cir. · 1999 · confidence medium
Moreover, in Williams v. MGM-Pathe Communications Co., 129 F.3d 1026 (9th Cir. 1997) (per curiam), a class action reversionary fund case, the Ninth Circuit held that the “district court abused its discretion by basing the fee on the class members' claims against the fund rather than on a percentage of the entire fund or on the lodestar.” Id. at 1027 (footnote omitted).
discussed Cited as authority (rule) In Re Copley Pharmaceutical, Inc. (2×) also: Cited "see"
D. Wyo. · 1998 · confidence medium
Currently, the Eleventh and District of Columbia Circuits have repudiated the use of the lodestar method in common fund cases, see Swedish Hospital Corp. v. Shalala, 1 F.3d 1261, 1265-66 (D.C.Cir.1993); Camden I Condominium Ass’n, Inc. v. Dunkle, 946 F.2d 768, 774 (11th Cir.1991), while the First, Third, Sixth, Seventh, Ninth, and Tenth Circuits have indicated that the percentage of the fund method is permissible or preferable, see Williams v. MGM-Pathe Communications Co., 129 F.3d 1026, 1027 (9th Cir.1997); Rosenbaum, 64 F.3d at 1445 (10th Cir.); In re Thirteen Appeals Arising Out of San Ju…
discussed Cited "see" Efrain Munoz, individually and on behalf of all others similarly situated, et al. v. PHH Mortgage Corporation, et al.
E.D. Cal. · 2025 · signal: see · confidence high
See Williams v. MGM-Pathe Commc’ns Co., 129 F.3d 1026 , 2 1027 (9th Cir. 1997). 3 The Ninth Circuit has held that the use of the “lodestar method” for cal- 4 culating a reasonable fee award “is appropriate in class actions brought under 5 fee-shifting statutes.” Bluetooth, 654 F.3d at 941 .
discussed Cited "see" David Lowery v. Rhapsody International, Inc.
9th Cir. · 2023 · signal: see · confidence high
See Williams v. MGM-Pathe Commc’ns Co., 129 F.3d 1026 , 1027 (9th Cir. 1997) (deferring to settlement agreement terms in evaluating reasonableness of fee award). 3 Unlike the magistrate judge, the district court did not expressly consider whether or how to include settlement administration costs, the Artist Advisory Board, and class representative travel reimbursements and enhancement awards in its calculation of the benefit to the class.
cited Cited "see" Dixon v. Cushman & Wakefield Western, Inc.
N.D. Cal. · 2022 · signal: see · confidence high
See Williams v. MGM-Pathe Commc’ns Co., 129 F.3d 1026 , 1027 23 (9th Cir. 1997).
discussed Cited "see" Vandervort v. Balboa Capital Corp.
C.D. Cal. · 2014 · signal: see · confidence high
See Williams v. MGM-Pathe Communications Co., 129 F.3d 1026 , 1027 (9th Cir.1997) (district court abused its discretion by basing fee on class members’ claims against fund rather than on percentage of entire fund or lodestar); In re Wal-Mart Stores Inc. Wage & Hour Lit., No. 06-02069 SBA, 2011 WL 31266 , *3, *7 (N.D.Cal.
discussed Cited "see, e.g." Oliveira v. Language Line Services, Inc.
N.D. Cal. · 2025 · signal: see also · confidence low
“Because the benefit to the class is easily quantified in 22 common-fund settlements,” both the Ninth Circuit and the California Supreme Court permit courts 23 “to award attorneys a percentage of the common fund in lieu of the often more time-consuming 24 task of calculating the lodestar.” Id.; see also Laffitte v. Robert Half Int’l Inc., 1 Cal. 5th 480 , 503– 25 06 (Cal. 2016). 26 In the Ninth Circuit, the well-established “benchmark for an attorneys’ fee award in a 27 successful class action is twenty-five percent of the entire common fund.” Williams v. MGM- 1 Pathe Commc�…
cited Cited "see, e.g." Savani v. URS Professional Solutions LLC
unknown court · 2015 · signal: see also · confidence low
Jan. 4, 2001) (awarding 30% of settlement, in a three year old case); see also Williams v. MGM-Pathe Comm. Co., 129 F.3d 1026 , 1027 (9th Cir.1997) (33.3% awarded); In re AMERCO Sec.
cited Cited "see, e.g." In Re TJX Companies Retail Security Breach Litigation
D. Mass. · 2008 · signal: see also · confidence medium
See Yeagley, 2008 MIL 171083, at *8; see also Williams, 129 F.3d at 1027. 15 .
discussed Cited "see, e.g." International Precious Metals Corp. v. Waters
SCOTUS · 2000 · signal: compare · confidence medium
Compare Strong v. BellSouth Telecommunications, Inc., 137 F. 3d 844, 852 (CA5 1998) (District Court did not abuse its discretion in basing fee award on actual payout rather than reversionary fund), with Williams v. MGM-Pathe Communications Co., 129 F. 3d 1026, 1027 (CA9 1997) (benchmark for fee award is 25% of entire fund, and District Court abused its discretion in basing award on actual distribution to class).
discussed Cited "see, e.g." International Precious Metals Corp. v. Waters
SCOTUS · 2000 · signal: compare · confidence medium
Compare Strong v. BellSouth Telecommunications, Inc., 137 F. 3d 844, 852 (CA5 1998) (District Court did not abuse its discretion in basing fee award on actual payout rather than reversionary fund), with Williams v. MGM-Pathe Communications Co., 129 F. 3d 1026, 1027 (CA9 1997) (benchmark for fee award is 25% of entire fund, and District Court abused its discretion in basing award on actual distribution to class).
Retrieving the full opinion text from the archive…
Fed. Sec. L. Rep. P 99,573, 97 Cal. Daily Op. Serv. 8728, 97 Daily Journal D.A.R. 14,147 J. Phillip Williams, and Herbert Eisen, Trustee for Margaret M. Eisen Family Trust, Plaintiff-Intervenor
v.
Mgm-Pathe Communications Co. Pathe Communications Corporation Credit Lyonnais Bank, Credit Lyonnais Bank Nederland N v. Giancarlo Parretti
96-55473.
Court of Appeals for the Ninth Circuit.
Nov 19, 1997.
129 F.3d 1026

129 F.3d 1026

Fed. Sec. L. Rep. P 99,573, 97 Cal. Daily Op. Serv. 8728,
97 Daily Journal D.A.R. 14,147
J. Phillip WILLIAMS, Plaintiff,
and
Herbert Eisen, Trustee for Margaret M. Eisen Family Trust,
Plaintiff-Intervenor,
v.
MGM-PATHE COMMUNICATIONS CO.; Pathe Communications
Corporation; Credit Lyonnais Bank, Credit
Lyonnais Bank Nederland N.V.; Giancarlo
Parretti, Defendants-Appellees.

No. 96-55473.

United States Court of Appeals,
Ninth Circuit.

Argued and Submitted July 7, 1997.
Memorandum Filed Sept. 4, 1997.
Order and Opinion Filed Nov. 19, 1997.

Arlin M. Adams, Schnader, Harrison, Segal & Lewis, Philadelphia, PA, for appellant.

Travers D. Wood, Ted S. Ward, White & Case, Los Angeles, CA, for appellee.

Appeal from the United States District Court for the Central District of California; Harry L. Hupp, District Judge, Presiding. D.C. No. CV-91-03276-HLH.

Before: CANBY, and THOMAS, Circuit Judges, and KING,[*] District Judge.

PER CURIAM:

1

Herbert Eisen, Trustee for the Margaret M. Eisen Family Trust, appeals the district court's award of attorneys' fees in connection with the settlement of a securities-fraud class action. The class brought the action against MGM Pathe Communications Co., Pathe Communications Corp., Credit Lyonnais Bank Nederland, and Giancarlo Parretti (the "defendants"). The parties settled the suit in favor of the class.

2

The class' attorneys contend that the district court should have calculated their fee as one-third of the entire $4.5 million settlement fund, for a fee of about $1.5 million, rather than calculating it as one-third of the class members' claims against that fund, for a fee of only $3,300. We conclude that the district court abused its discretion[1] by basing the fee on the class members' claims against the fund rather than on a percentage of the entire fund or on the lodestar. We thus reverse and remand.

3

In Boeing Co. v. Van Gemert, 444 U.S. 472, 480-81, 100 S.Ct. 745, 750-51, 62 L.Ed.2d 676 (1980), the Court concluded that the attorneys for a successful class may recover a fee based on the entire common fund created for the class, even if some class members make no claims against the fund so that money remains in it that otherwise would be returned to the defendants. In Six (6) Mexican Workers v. Arizona Citrus Growers, 904 F.2d 1301, 1311 (9th Cir.1990), we held likewise, and indicated that our benchmark for an attorneys' fee award in a successful class action is twenty-five percent of the entire common fund. Of course, the percentage may be adjusted to account for any unusual circumstances. See Paul, Johnson, Alston, & Hunt v. Graulty, 886 F.2d 268, 272 (9th Cir.1989). We also have applied the lodestar approach in some cases. See Florida v. Dunne, 915 F.2d 542, 545 (9th Cir.1990).

4

We recognize that in this case, as opposed to Boeing and Six (6) Mexican Workers, the absent class members do not necessarily have a calculable interest in the unclaimed money in the fund, which will be returned to the defendants if it is not used to pay the class attorneys' fees. See Boeing, 444 U.S. at 475-76, 100 S.Ct. at 747-48; Six (6) Mexican Workers, 904 F.2d at 1304. The district court apparently concluded that the payment of fees from the money remaining in the fund thus would amount to prohibited fee shifting: assessing fees against the defendants, rather than against the absent class members. But, also unlike Boeing and Six (6) Mexican Workers, this case involves a settlement that was negotiated at arms length, not a judgment. See Boeing, 444 U.S. at 475-76, 100 S.Ct. at 747-48; Six (6) Mexican Workers, 904 F.2d at 1304. The Supreme Court has indicated that the parties to a class action properly may negotiate not only the settlement of the action itself, but also the payment of attorneys' fees. See Evans v. Jeff D., 475 U.S. 717, 734-35, 738 n. 30, 106 S.Ct. 1531, 1540-42, 1543 n. 30, 89 L.Ed.2d 747 (1986). The Defendants here knew, because it was in the settlement agreement, that the class attorneys would seek to recover fees based on the entire $4.5 million fund. See CR 198 at 23. The Defendants had some responsibility to negotiate at the outset for a smaller settlement fund if they wished to limit the fees.

5

The order of the district court is reversed and the matter is remanded for further proceedings consistent with this opinion.

6

REVERSED AND REMANDED.

*

The Honorable Samuel P. King, Senior United States District Judge for the District of Hawaii, sitting by designation

1

We review for abuse of discretion a district court's award of attorneys' fees. Nelson v. Pima Community College, 83 F.3d 1075, 1080 (9th Cir.1996)