PointofLaw.com
 Subscribe Subscribe   Find us on Twitter Follow POL on Twitter  
   
 
   

 

 

Hecht v. United Collection Bureau (2d Circuit)

| No Comments


In a typical class action settlement, the defendants will often pay as much as a million dollars in notice expenses. One way class action attorneys inflate their fee requests is by claiming these notice expenses are a benefit to the class, and should be counted when calculating "percentage of the benefit" attorneys' fees. This is, of course, utter nonsense. Notice is a benefit to the defendant; any defendant who skimps on the constitutionally-required notice will not get the benefit of the unnamed class members' waiver that the defendant is presumably seeking. And, indeed, that's exactly what happened in the Second Circuit case of Hecht v. United Collection Bureau, where a class action settlement was deemed not binding on a new class of FDCPA complainants who were dissatisfied with that settlement and wished to bring a new action. The case is also important for affirming that Rule 23(b)(2) class certification cannot bind a class on damages claims. More: Wolfman, who successfully argued the appeal; Frankel at Reuters.

If anyone is looking for a free chance at a multi-million-dollar consumer class action, Hecht provides a good cause in a suit against HP and NVIDIA over their misleading notice to the class of a rip-off settlement.

Leave a comment

Once submitted, the comment will first be reviewed by our editors and is not guaranteed to be published. Point of Law editors reserve the right to edit, delete, move, or mark as spam any and all comments. They also have the right to block access to any one or group from commenting or from the entire blog. A comment which does not add to the conversation, runs of on an inappropriate tangent, or kills the conversation may be edited, moved, or deleted.

The views and opinions of those providing comments are those of the author of the comment alone, and even if allowed onto the site do not reflect the opinions of Point of Law bloggers or the Manhattan Institute for Policy Research or any employee thereof. Comments submitted to Point of Law are the sole responsibility of their authors, and the author will take full responsibility for the comment, including any asserted liability for defamation or any other cause of action, and neither the Manhattan Institute nor its insurance carriers will assume responsibility for the comment merely because the Institute has provided the forum for its posting.

Related Entries:

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.