Authorizes attorneys' fees to be awarded to any person that the court finds has acted to benefit the class.

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S4577A-2011 Actions

• Sep 23, 2011: SIGNED CHAP.566
• Sep 12, 2011: DELIVERED TO GOVERNOR
• Jun 6, 2011: returned to senate
• Jun 6, 2011: passed assembly
• Jun 6, 2011: ordered to third reading rules cal.75
• Jun 6, 2011: substituted for a7519a
• Jun 2, 2011: referred to codes
• Jun 2, 2011: DELIVERED TO ASSEMBLY
• Jun 2, 2011: PASSED SENATE
• May 23, 2011: AMENDED ON THIRD READING 4577A
• May 9, 2011: ADVANCED TO THIRD READING
• May 4, 2011: 2ND REPORT CAL.
• May 3, 2011: 1ST REPORT CAL.441
• Apr 12, 2011: REFERRED TO JUDICIARY

S4577A-2011 Calendars

Active List: Jun 2, 2011 , Floor Calendar: May 24, 2011 , Floor Calendar: May 25, 2011 , Floor Calendar: Jun 1, 2011 , Floor Calendar: Jun 2, 2011

S4577A-2011 Votes

S4577A-2011 Memo

BILL NUMBER:S4577A

TITLE OF BILL:
An act
to amend the civil practice law and rules, in relation to the award of
attorneys' fees in class actions

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her
Advisory Committee on Civil Practice.

A recent decision of the New York Court of Appeals, Flemming v
Barnwell Nursing Home and Health Facilities, Inc., _ N.Y.3d _,2010 WL
4116615 (Oct. 21, 2010) highlights what our Advisory Committee
believes to be a deficiency in the scope of CPLR Rule 909, which
relates to the award of attorneys' fees in class actions. That rule
gives a court discretion to award attorneys' fees to representatives
of the class based upon the reasonable value of the services
rendered. In Flemming, the issue was whether an attorney for an
objecting member of the class, whose actions actually benefitted the
class, could also receive an award of attorneys' fees. The majority
held that the attorney could not receive fees because of the strict
wording of rule 909 which limits an award of fees to
"representatives of the class." Two judges dissented, arguing that
rule 909 was not intended to restrict the well-established common
fund doctrine, which, under the common law, allowed those whose
actions benefitted a common fund to receive reimbursement for their
efforts.

We believe that it is appropriate for a court to award fees, in
appropriate actions, to a party whose attorney benefits the class in
some tangible way, other than as counsel to the named class members.
In many class action cases, objecting parties successfully argue that
the proposed settlement is inadequate, that the class should be
expanded or, as in Flemming, that the fees proposed for the class
representatives are too high. The court should also have the
discretion to compensate counsel for those efforts.

We therefore propose an amendment to CPLR rule 909 to specifically
provide that the court may award attorneys' fees to not only
representatives of the class, but also to any person that the court
finds has acted to benefit the class.

This measure would have no fiscal impact on the State. It would take
effect immediately and apply to all actions commenced on or after the
date on which it shall have become a law and all actions pending on
the date on which it shall have become a law.

LEGISLATIVE HISTORY:
None. New proposal.

S4577A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   4577--A
      Cal. No. 441

                         2011-2012 Regular Sessions

                              I N  SENATE

                               April 12, 2011
                                 ___________

  Introduced  by  Sens.  BONACIC,  PARKER  -- (at request of the Office of
    Court Administration) -- read twice  and  ordered  printed,  and  when
    printed  to  be  committed  to  the Committee on Judiciary -- reported
    favorably from said committee, ordered to  first  and  second  report,
    ordered  to  a third reading, amended and ordered reprinted, retaining
    its place in the order of third reading

  AN ACT to amend the civil practice law and rules,  in  relation  to  the
    award of attorneys' fees in class actions

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Rule 909 of the civil practice law and rules, as  added  by
  chapter 207 of the laws of 1975, is amended to read as follows:

    Rule  909. Attorneys' fees. If a judgment in an action maintained as a
  class action is rendered in  favor  of  the  class,  the  court  in  its
  discretion may award attorneys' fees to the representatives of the class
  AND/OR TO ANY OTHER PERSON THAT THE COURT FINDS HAS ACTED TO BENEFIT THE
  CLASS  based  on  the reasonable value of legal services rendered and if
  justice requires, allow recovery of the amount awarded from the opponent
  of the class.
    S 2. This act shall take effect immediately and apply to  all  actions
  commenced  on  or after the date on which it shall have become a law and
  all actions pending on the date on which it shall have become a law.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD09315-03-1