How are attorneys’ fees paid in a class action settlement?

In Washington, most class action lawsuits are handled by plaintiff attorneys on a contingency-fee basis. That means that the plaintiff attorneys are only paid a fee if the lawsuit is successfully settled or won in court. When a settlement is reached, the defendant will usually agree to pay the plaintiff attorneys’ fees as part of the settlement agreement. On rare occasions, a court might order the defendant to pay the plaintiff attorneys’ fees as part of the court’s judgment. In either case, the agreement between the parties determines how the attorneys’ fees are apportioned. The settlement agreement or judgment typically requires the defendant to pay the plaintiff attorneys’ fees and applicable court costs out of the settlement funds or judgment. Most class action settlements also require the defendant to pay the attorneys’ fees into an escrow account owned by the class counsel. The class counsel then distributes the attorneys’ fees to all the attorneys who worked on the case. The class counsel must also submit a detailed accounting to the court, detailing how the attorneys’ fees were disbursed. This accounting is typically open to public inspection. Class action attorneys are paid a fee to represent the interests of a group of people whose claims are too small to be brought as individual cases. These fees are payment for the attorneys’ time and work to protect the rights of the individuals in the class.

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How are attorneys’ fees paid in a class action settlement?

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