House File 2244
HOUSE FILE
BY HORBACH
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to an award of attorney fees in a class action
2 lawsuit.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5633HH 80
5 rh/sh/8
PAG LIN
1 1 Section 1. NEW SECTION. 613B.1 APPLICABILITY.
1 2 1. Except as provided in subsection 2, this chapter
1 3 applies to an award of attorney fees in a class action
1 4 lawsuit, notwithstanding any of the following:
1 5 a. An agreement between the attorney for the class and any
1 6 member of the class.
1 7 b. Any other law or rule of court.
1 8 2. This chapter shall not apply to fees payable to the
1 9 attorney by a named plaintiff client out of the client's
1 10 funds, including the client's share of the common fund
1 11 recovered for the class, under an agreement between the
1 12 attorney and the client.
1 13 Sec. 2. NEW SECTION. 613B.2 NO RIGHT TO FEES CREATED.
1 14 This chapter does not create a right to an award of
1 15 attorney fees.
1 16 Sec. 3. NEW SECTION. 613B.3 AWARD OF ATTORNEY FEES ==
1 17 COMMON FUND.
1 18 If a court awards a fee in a class action to the attorney
1 19 for the class, the fee must be awarded out of a common fund or
1 20 measured by a common benefit recovered for the class, and the
1 21 fee shall be computed as provided in this chapter.
1 22 Sec. 4. NEW SECTION. 613B.4 AWARD OF ATTORNEY FEES ==
1 23 DETERMINATION OF BASE FEE.
1 24 1. In a class action in which an award of attorney fees is
1 25 to be made, the court shall first determine the base fee under
1 26 this section.
1 27 2. In determining the amount of the attorney fees, the
1 28 court shall consider all of the following factors:
1 29 a. The number of hours reasonably expended by the attorney
1 30 for the class.
1 31 b. The hourly rate most appropriate for the services
1 32 provided by the attorney for the class.
1 33 3. The rates determined pursuant to subsection 2 shall be
1 34 based on and shall not exceed the rates customarily charged in
1 35 the locality for similar legal services in an action other
2 1 than a class action.
2 2 4. In computing the base fee, the court shall multiply the
2 3 hours determined pursuant to subsection 2, paragraph "a", by
2 4 the rate determined pursuant to subsection 2, paragraph "b".
2 5 Sec. 5. NEW SECTION. 613B.5 INCREASE OR DECREASE OF BASE
2 6 FEE == TOTAL FEES.
2 7 1. Except as provided in subsection 2, the court may
2 8 increase or decrease the base fee determined pursuant to
2 9 section 613B.4 upon consideration of all of the following
2 10 factors:
2 11 a. The novelty and the difficulty of the issues involved
2 12 in the action.
2 13 b. The skill required to properly perform the legal
2 14 services by the attorney for the class.
2 15 c. The amount of money involved in the action and the
2 16 results obtained.
2 17 d. The time limitations imposed by the class for the
2 18 services provided by the attorney for the class or the
2 19 circumstances of the class action.
2 20 e. The experience, reputation, and ability of the attorney
2 21 for the class.
2 22 2. The total fees awarded by the court shall not exceed
2 23 the lesser of the following:
2 24 a. Twenty=five percent of the amounts collected by class
2 25 members out of the common fund or as measured by a common
2 26 benefit recovered for the class.
2 27 b. Four times the base fee as determined pursuant to
2 28 section 613B.4.
2 29 Sec. 6. NEW SECTION. 613B.6 ACTUAL EXPENSES AND COSTS.
2 30 In addition to the fee determined by the court pursuant to
2 31 this chapter, the court may award the attorney representing
2 32 the class all reasonable expenses and costs of litigation
2 33 actually incurred by the attorney on behalf of the class.
2 34 EXPLANATION
2 35 This bill relates to the award of attorney fees in a class
3 1 action lawsuit.
3 2 The bill applies to an award of attorney fees in a class
3 3 action to the attorney for the class, and such a fee must be
3 4 awarded out of a common fund or measured by a common benefit
3 5 recovered for the class. The bill does not apply to attorney
3 6 fees payable to the attorney by a named plaintiff client out
3 7 of the client's funds.
3 8 The bill provides that the court shall award attorney fees
3 9 using a base fee, which is calculated on the number of hours
3 10 reasonably expended by the attorney multiplied by the hourly
3 11 rate most appropriate for the services provided by the
3 12 attorney. In determining the hourly rate, the court shall
3 13 consider and shall not exceed rates customarily charged in the
3 14 locality for similar legal services in an action other than a
3 15 class action. In addition, the bill provides that the court
3 16 may increase or decrease the base fee upon consideration of
3 17 the novelty and the difficulty of the issues involved in the
3 18 action, the skill required, the amount of money involved and
3 19 the results obtained, the time limitations imposed, and the
3 20 experience, reputation, and the ability of the attorney for
3 21 the class. The total fees awarded by the court shall not
3 22 exceed 25 percent of the common fund or common benefit
3 23 recovered for the class or four times the base fee, whichever
3 24 is less.
3 25 The bill provides that the court may award the attorney
3 26 representing the class all reasonable expenses and costs of
3 27 litigation incurred by the attorney on behalf of the class.
3 28 LSB 5633HH 80
3 29 rh/sh/8