In the wake of the Eleventh Circuit’s 2020 split decision eliminating class action incentive awards for representative plaintiffs, many court-watchers and class action litigators expected the decision to remain an outlier at best, if not outright reversed.
In fact, however, the Eleventh Circuit ultimately declined en banc review and now the Second Circuit has also cast doubt on service awards for class representatives, calling them “at best dubious” and “likely impermissible” under the same 1880s Supreme Court precedent cited by the Eleventh Circuit.
The Second Circuit stopped short of outright overruling its own lengthy precedent affirming such awards, but the decision potentially sets up a inter-Circuit conflict as most other Circuits have affirmed what had been the longstanding and uncontroversial practice of granting modest service awards to class representatives.
At least two petitions for certiorari are pending before the United States Supreme Court on this specific issue, as some legal commentators suggest there is a need for the Supreme Court to resolve the disparate rulings and some judges bristle at what they view as excessive or overly generous service awards. We will be closely monitoring this fast-changing legal landscape and updating our readers on future developments.
The select mediators and arbitrators at UWWM’s Center for National Class & Mass Actions have decades of specific experience in class and mass actions and are uniquely qualified to assist you in resolving these legal disputes. For further information and scheduling, please visit our website.
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