In a class action for money damages,
lawyers who represent the class are
generally paid out of the money that's
recovered - called a "common fund" - for the
people they are representing. In class
actions involving declaratory judgments or
injunctive relief, lawyers may be paid by
the people who hired them, or in some cases,
by the people or companies they are suing.
Attorney's fee awards are subject to court
review and approval. Ordinarily, if an award
is made in a common fund case, it will be
awarded as a percentage of the total money
available for the class. A benchmark award
generally accepted by the courts is
approximately 25 percent of the total,
although the award may be adjusted higher or
lower, depending on the specific facts of a
case.
