Fifth Circuit Opines On Class Action Fee Awards

On August 8, 2011, the Fifth Circuit held in McClain, et al. v. Lufkin Industries, Inc.,  No. 10-40036 (5th Cir. Aug. 8, 2011), that where the record unequivocally shows that it was necessary for plaintiffs’ counsel to retain co-counsel from outside their local district, the district court abused its discretion in refusing to use the out-of-district co-counsel’s home rates as the starting point for the calculation of attorneys’ fees. In essence, the ruling supports the notion that plaintiffs-side class action specialist firms are entitled to be paid their customary rates from large metropolitan areas, as opposed to typical rates in the locale where they file and prosecute their class action lawsuit.

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