Class Action: $250,000 Fees, Cost Recovery In Weight Loss Product Class Action Affirmed On Appeal Even Though Claims Were Only About $250,000

“Clear Sailing” Provision Not Per Se Suspect.

      Weight Loss.

Father reduces his weight.  Arthur Burdett Frost, 1914.  Library of Congress.

     In Anaya v. QuickTrim, LLC, Case No. D067432 (4^th Dist., Div. 1 July 2, 2015) (unpublished), a CLRA class action challenging product labeling and packaging for weight loss products was settled under a refund/coupon mechanism, although the refunds were relatively low in amount per consumer. The settlement further had a “clear sailing” clause by which the defense would not object to a class action fee recovery request not exceeding $250,000.

     Although the defense did set up a settlement website receiving a large number of hits and about 16,000 class member claims, the combined estimated value of the claims through the refund/coupon options came to about $247,484.68. The trial court approved the settlement and awarded $250,000 in fees/costs to class counsel.

     An objector complained, among other things, that the fees award was an abuse of discretion and disproportionate to the class’s recovery. However, because the amount of a fee award is viewed through a deferential review lens, adequate substantiation was provided to support the work effort of class counsel. Also, “clear sailing” provisions are not improper under California law per se, actually being quite common so as to not raise a red flag under the facts here. (In re Consumer Privacy Cases, 175 Cal.App.4^th 545, 553 (2009).) So, objector’s challenges to the fee award were rejected on appeal.