Today's Date: Add To Favorites
Judge criticizes fees in Sears case
Legal Business | 2007/07/23 10:57

A North Carolina judge has harshly criticized the settlement of a class-action lawsuit in which a Wilmington lawyer and colleagues received $950,000 in fees while consumers who Sears overcharged across the country were reimbursed a total of $2,402. Superior Court Judge Ben Tennille decried the excessive fees and the lack of effort made to reach customers who had paid too much for wheel alignments at Sears automotive centers. Tennille, who specializes in complex business cases, criticized Sears and the lawyers for trying to hide the settlement results from him.

"Their efforts to keep the results secret are understandable," Tennille wrote in his May decision. "The shocking incongruity between class benefit and the fees ... leave the appearance of collusion and cannot help but to tarnish the public perception of the legal profession."

Sears is appealing Tennille's decision and declined to discuss the case.

Gary Shipman, a Wilmington lawyer who led the class action lawsuit, attacked Tennille's order as wrong on the law and filled with factual errors. Shipman complained that Tennille issued his ruling out of the blue, two years after the last hearing in the case. And Shipman said the judge did not have jurisdiction and therefore did not have the power to make decisions in the case.

"Do you think Judge Tennille's word is the Gospel?" Shipman asked. "There is so much in that order that is wrong."

But a top consumer advocate said Tennille's objections had merit.

"Good for the judge," said Ira Rheingold, the executive director of the National Association of Consumer Advocates, which advises and lobbies for lawyers who bring class action lawsuits.

"Cases like this make it look like a get-rich scheme for attorneys," Rheingold said. "The attorneys collect all the fees, and the consumers get no benefits."

Inflated charges

In 2002, Shipman filed one lawsuit in Wilmington and another lawsuit in Chicago, where Sears has its headquarters.

The lawsuits alleged that Sears charged clients for pricier four-wheel alignments on cars which can only be serviced with less expensive two-wheel alignments. Although the inflated charge is a few dollars for each customer, Sears stood to make millions of dollars from the alleged scheme, given the retail giant's nationwide presence.

Shipman said his lawsuit was inspired by one filed in New Jersey. In that case, the New Jersey attorney general combed through Sears records and identified 12,544 New Jersey residents who had paid too much for alignments. Sears agreed to give $10 cash to each person and to give $500,000 to the Attorney General's Office for consumer protection and expenses.

No notices posted

Tennille criticized the method Shipman used to locate the estimated 1.5 million customers who had been overcharged. Tennille faulted Shipman and his fellow lawyers for not insisting that Sears post notices and place claim forms on the counters of Sears' 843 automotive centers around the country. Sears' billing records were not used, nor were lists of Sears credit card holders.

Rather, Sears advertised in newspapers, which courts have recognized as the least effective way of finding class members -- "an essentially futile gesture," the judge wrote. Sears put notices in newspapers in 25 of the country's largest wheel alignment markets and in Parade magazine and USA Weekend, which are inserted in weekend newspapers across the country.

The newspaper notice produced 317 valid claims nationwide.

"Doing the math in this case is easy," the judge wrote. "For each class member who received a $10 check or $4 coupon, plaintiffs' counsel received just shy of $3,000."

According to Shipman, an expert witness estimated that the newspaper advertisements reached 79.24 percent of the claimants in Sears' top 25 markets for alignment sales.

"We certainly believed more people would take advantage of a 100 percent refund," he said. "We don't know if they found out about it. Many times people just don't want to fill out a claim form."

Defending the fees

Shipman said the legal fees were not excessive because they were based on how much time he and his colleagues from six other law firms had spent on the case.

"Sears had paid their attorneys more than what we had been paid," Shipman said.

Shipman said he never hid results from Tennille. He said that the judge in the Chicago lawsuit had jurisdiction in the case and that Tennille had no authority to issue orders. Shipman said he would have given an accounting of the lawsuit had Tennille asked, and did supply the figures in May 2005.

Though Tennille's order was strongly worded, the judge conceded he cannot undo the settlement approved by the Illinois court in 2005.

Shipman and his fellow lawyers have "been more than adequately compensated by the Illinois court," Tennille wrote. "There is nothing this court can do about that."



[PREV] [1] ..[6506][6507][6508][6509][6510][6511][6512][6513][6514].. [8300] [NEXT]
All
Class Action
Bankruptcy
Biotech
Breaking Legal News
Business
Corporate Governance
Court Watch
Criminal Law
Health Care
Human Rights
Insurance
Intellectual Property
Labor & Employment
Law Center
Law Promo News
Legal Business
Legal Marketing
Litigation
Medical Malpractice
Mergers & Acquisitions
Political and Legal
Politics
Practice Focuses
Securities
Elite Lawyers
Tax
Featured Law Firms
Tort Reform
Venture Business News
World Business News
Law Firm News
Attorneys in the News
Events and Seminars
Environmental
Legal Careers News
Patent Law
Consumer Rights
International
Legal Spotlight
Current Cases
State Class Actions
Federal Class Actions
Amazon workers strike at mul..
TikTok asks Supreme Court to..
Supreme Court rejects Wiscon..
US inflation ticked up last ..
Court seems reluctant to blo..
Court will hear arguments ov..
Romanian court orders a reco..
Court backs Texas over razor..
New Hampshire courts hear 2 ..
PA high court orders countie..
Tight US House races in Cali..
North Carolina Attorney Gene..
Republicans take Senate majo..
What to know about the unpre..
A man who threatened to kill..


Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
St. Louis Missouri Criminal Defense Lawyer
St. Charles DUI Attorney
www.lynchlawonline.com
Lorain Elyria Divorce Lawyer
www.loraindivorceattorney.com
Legal Document Services in Los Angeles, CA
Best Legal Document Preparation
www.tllsg.com
Car Accident Lawyers
Sunnyvale, CA Personal Injury Attorney
www.esrajunglaw.com
East Greenwich Family Law Attorney
Divorce Lawyer - Erica S. Janton
www.jantonfamilylaw.com/about
St. Louis Missouri Criminal Defense Lawyer
St. Charles DUI Attorney
www.lynchlawonline.com
Connecticut Special Education Lawyer
www.fortelawgroup.com
  Law Firm Directory
 
 
 
© ClassActionTimes.com. All rights reserved.

The content contained on the web site has been prepared by Class Action Times as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. Affordable Law Firm Web Design