Water crisis lawyers seek nearly $43 million in fees

A number of lawyers and law firms for Kanawha Valley residents and businesses are asking a federal judge to approve payments of up to nearly $43 million in legal fees.

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They are also seeking an additional $2.4 million in expenses as part of the settlement of class-action litigation over the January 2014 water crisis, according to a new court filing. In the deal, residents and businesses will receive tens of millions of dollars as compensation for the contamination of the region’s drinking water supply following the 2014, spill of MCHM and other chemicals at the Freedom Industries site just upstream from West Virginia American’s intake on the Elk River.  More than 224,000 residents in 105,000 households and more than 7,000 businesses are covered by the settlement.

Seeking 30 per cent of settlement

The settlement which must be approved by Copenhaver before it takes effect, proposes that lawyers who represented residents and businesses receive 30 percent of the first $101 million paid to victims and 25 percent of whatever from the next $50 million is paid out. It also proposes the lawyers be paid for expenses and receive 30 percent of an additional $400,000 contributed to the deal by former Freedom officials Gary Southern and Dennis Farrell.

Dozens of lawyers involved

The firms that filed the new fee petition included three that were designated as ‘class counsel’ in the federal court case: Bonnett Fairbourne Friendman & Balint; The Calwell Practice; and Thompson Barney. Also listed were firms that represented residents and businesses in state court litigation that is also being resolved as part of the settlement: Powell & Majestro; Bailey & Glasser; and The Masters Law Firm. Also included the filing were the firms Smith Stag; Underwood Law Office; Hare Wynn Newell & Newton; The Law Office of P. Rodney Jackson; and Ciccarello, De Giudice & LaFon. The court filing lists more than three dozen lawyers and a greater number of paralegals and other staff who worked on the case.

Above average

The fee request amounts to an average of about 28.5 percent of the total settlement, an amount that the lawyers concede is ‘slightly above’ the figure that courts presume is reasonable, but the lawyers argue there are ‘other factors’ that justify the payment.

$2.4 million in expenses sought

In their court filing Monday night, the lawyers for residents and businesses also outlined their request to be repaid nearly $2.4 million in expenses. Roughly half of the expenses would be paid to the law firm Bonnett, Fairbourn, Friedman and Balint. The other two firms that served as “class counsel” in the federal case, the Calwell Practice and Thompson Barney, reported expenses of $253,000 and $257,000, respectfully. Powell & Majestro, a lead firm in the state court cases, reported expenses of $357,000.

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