No. 19-504

Kara Bowes v. Christina Melito, et al.

Lower Court: Second Circuit
Docketed: 2019-10-18
Status: Denied
Type: Paid
Response Waived
Tags: attorney-fees central-r-&-banking-co-v-pettus class-action common-fund incentive-awards litigation-expenses precedent precedential-force representative-plaintiffs trustees-v-greenough
Key Terms:
ERISA Securities Privacy JusticiabilityDoctri ClassAction Jurisdiction
Latest Conference: 2019-12-13
Question Presented (AI Summary)

Do the holdings of Greenough and Pettus, which prohibit payments in common-fund cases to compensate representative plaintiffs for their service to the class, retain precedential force, or are they in fact abrogated?

Question Presented (OCR Extract)

QUESTION PRESENTED This Court’s longstanding precedent holds that representative plaintiffs whose litigation creates a “common fund” benefiting a larger class may recover from the fund their reasonable litigation expenses (including attorney’s fees) but that any payment compensating the named plaintiffs for their own “personal services” is both “decidedly objectionable” and “illegally made.” Trustees v. Greenough, 105 U.S. 527, 537-38 (1882). A named plaintiff's “claim to be compensated, out of the fund ... for his personal services” has been “rejected as unsupported by reason or authority.” Central R. & Banking Co. v. Pettus, 113 U.S. 116, 122 (1885). Lower courts long honored this Court’s considered precedent on this point. Lately, though, lower courts have effectively done away with this Court’s rule by freely granting “incentive awards” to representative plaintiffs, and this Court’s recent dictum in China Agritech, Inc. v. Resh, __U.S.__, 188 S.Ct. 1800, 1811 n.7 (2019), seems to acquiesce in the lower courts’ abrogation of its own precedent by stating: “The class representative might receive a share of class recovery above and beyond her individual claim. See, e.g., Cook v. Niedert, 142 F.3d 1004, 1016 (CA.7 1998) (affirming class representative’s $25,000 incentive award).” The question presented is: Do the holdings of Greenough and Pettus, which prohibit payments in common-fund cases. to compensate representative plaintiffs for their service to the class, retain precedential force, or are they in fact abrogated?

Docket Entries

2019-12-16
Petition DENIED.
2019-11-26
DISTRIBUTED for Conference of 12/13/2019.
2019-10-31
Waiver of right of respondents American Eagle Outfitters, Inc. and AEO Management Co. to respond filed.
2019-10-22
Waiver of right of respondents Christina Melito, Ryan Metzger, Alison Pierce, Gene Ellis, Walter Wood and Christopher Legg to respond filed.
2019-10-16
Petition for a writ of certiorari filed. (Response due November 18, 2019)
2019-08-23
Application (19A214) granted by Justice Ginsburg extending the time to file until October 16, 2019.
2019-08-19
Application (19A214) to extend the time to file a petition for a writ of certiorari from September 1, 2019 to October 16, 2019, submitted to Justice Ginsburg.

Attorneys

American Eagle Outfitters, Inc. and AEO Management Co.
Richard T. VictoriaGordon Rees Scully Mansukhani, LLP, Respondent
Richard T. VictoriaGordon Rees Scully Mansukhani, LLP, Respondent
Christina Melito, Ryan Metzger, Alison Pierce, Gene Ellis, Walter Wood and Christopher Legg
Beth E. TerrellTerrell Marshall Law Group, Respondent
Beth E. TerrellTerrell Marshall Law Group, Respondent
KARA BOWES
Eric Alan IsaacsonLaw Office of Eric Alan Isaacson, Petitioner
Eric Alan IsaacsonLaw Office of Eric Alan Isaacson, Petitioner