A southern California attorney who brought a class action against a clothes retailer will be paid $125,000 for his legal services -- in gift cards.
Yorba Linda attorney Neil B. Fineman brought a class action lawsuit against Windsor Fashions, alleging the company was committing routine violations of the Song-Beverly Credit Card Act, according to the Metropolitan News-Enterprise.
Per the settlement agreement, class members won't receive cash, only a $10 gift card. Los Angeles Superior Court Judge Brett Klein also provided that Fineman will be paid his fee with "12,500 ten-dollar Windsor Fashions gift cards."
The lawyer is to get 3,500 of those cards by next Monday and 750 of them on the third day of each month through January of next year. The named plaintiff, Jacqueline Cohen, will garner 250 of the gift cards as an "incentive reward" for leading the charge.
According to the paper, "What Fineman has done is to promote purchases at the defendants' stores."
The Civil Justice Association of California salutes the judge for his innovation. In many class action cases, the lawyers walk away with millions -- in real dollars, while the class members receive coupons.
These cases illustrate a central problem of class action lawsuits in California -- the pressure to settle cases, meritorious or not -- after the class has been certified. In California, only the plaintiff has the right to appeal the all-important class certification decision at the outset of a case. If both sides were allowed the same right to appeal the certification decision, there would be a greatly reduced opportunity to leverage a questionable class action lawsuit into a big settlement.