Class Actions: Class Counsel Have Obligations To Enforce Judgment And Report To Supervising Court On Uncollectibility

Class Counsel’s Obligations Do Not End With Entry of Judgment.

     Class actions have heightened obligations for class counsel, with fiduciary obligations that transcend those owed to non-class clients. The next case shows that the obligations extend beyond mere entry of judgment.

     Barboza v. West Coast Digital GSM, Inc., Case No. B215454 (2d Dist., Div. 4 Nov. 19, 2009) (certified for publication) involved a situation where class counsel obtained a stipulated judgment against a defendant, but then argued he had no obligation to enforce any judgment on behalf of the class after the attorney’s fees motion was heard.

     Not so, said the appellate court. Class counsel’s obligations do not end with entry of judgment, but continue until all issues are resolved (which may include enforcement of judgment). If need be, class counsel may have to associate in specialized judgment collections counsel (which must be paid by the class from any recovery achieved). If no recoverable assets are found to exist after a diligent inquiry, class counsel should present such findings to the supervising trial court and should then obtain a ruling that counsel is relieved of any further obligations to the class.

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