Arbitrator Enhances Plaintiff’s Lodestar by 3.0 Multiplier.
We give thanks to Cal Biz Lit, who in his June 16, 2009 post described a “prove-up” arbitration award of $4.1 billion stemming from a very unusual lost commission dispute. He notes that the award was confirmed as a judgment by the Los Angeles County Superior Court on May 28, 2009. See Chester v. iFreedom Communications Incorporated, et al., LASC Case No. BC353567 (with a copy of the judgment and arbitration award available from the Cal Biz Lit post).
So, what attorney’s fees were awarded in this eye-popping award? Retired Orange County Superior Court Judge William F. McDonald, who is affiliated with JAMS, awarded lodestar amounts of $178,750 to one attorney and $32,400 to another attorney under various Labor Code fee-shifting provisions. Arbitrator McDonald then enhanced the lodestars by a 3.0 multiplier, which took the total fee award to $633,450.
Interestingly enough, guess what the daily post-judgment interest is on the total judgment? Believe it or not, $1,125,159.97 per day!
Although we co-contributors usually do not comment on the merits, it does appear that the fee award was well within the realm of reasonableness.
BLOG UNDERVIEW—Although common lore among attorneys has it that arbitrators seldom award punitive damages, that folk wisdom did not hold up in this case. Arbitrator McDonald awarded $2,926,276,674.27 in punitive damages to plaintiff.