The Court of Appeals for the 4th Circuit ordered a district judge to re-consider the fee to be awarded to plaintiff’s counsel in a personal injury case that resulted in a $18M dollar settlement. The district court had cut the fee from $6M to $600,000.
The appellate court concluded that the district court had disregarded the nature of contingent fee contracts in cutting the award.
The case is Pellegren v. National Union Fire Company, No. 09-1285 (4th Cir. May 18, 2010).
Senator Ensign (R-Nevada) introduced an amendment to limit contingent fees in medical malpractice cases. The Senator attempted to attached the language to amendment SA 2786 to H.R. 3590, which is intended to amend the Internal Revenue Code of 1986 to modify the first-time homebuyers credit in the case of members of the Armed Forces and certain other Federal employees, and for other purposes.
Senator Ensign’s amendment was defeated by a vote of 32 – 66 (2 Senators did not vote). Both Tennessee senators voted in favor of the amendment to restrict fees.
The following Democrats voted to limit fees as set forth in the amendment: Senators Hagan, Warner, Lieberman, Lincoln, and Kohl. The following Republicans voted against the amendment to limit fees: Senators Bennett, Chambliss, Cochran, Collins, Crapo, Hatch, Johanns, LeMieux, Risch, and Shelby.
Day on Torts