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48. Why do Class Counsel get both 1/3 of the settlement and an additional $250,000 to be the claims administrator?

Class Counsel are acting in two different roles – one role is as the lawyers for the class members, and the other role is as the claims administrator.

The fee of 1/3 of the settlement is for acting as the lawyers for the class members. See FAQ#47 for more information about this fee.

There are specialized firms that do claims administration. Class Counsel asked one of those firms for a price to do this work. The price was higher than $250,000. Class counsel therefore decided to do it ourselves. In our experience, if we billed at our usual hourly rates it would cost us more than $250,000 to properly administer the claims process.

Posted in: Questions about Class Counsel (the Lawyers) and the Experts, Teck/Cominco Class Action FAQs