Gibson’s Bakery awarded over $6.5 million in attorney’s fees and expenses against Oberlin College

William Jacobson:

“Plaintiffs presented evidence of hourly rates for their attorneys and paralegal/support staff that ranged from $675.00 per hour on the high end and $115.00 per hour on the low end, creating an average hourly rate of $395.00 per hour. Defendants’ average hourly rates for attorneys and paralegals/support staff ranged from $400.00 per hour on the high end and $100.00 on the low end, creating an average hourly rate of $250.00 per hour. The Court hereby finds that a reasonable average hourly rate in this community, given the complexity of the issues and experience of the attorneys handling the case, is $290.00 per hour.”

The Judge’s decision does not address how the award of attorney’s fees works as between the Gibsons and their lawyers.

The lawyer’s took the case on a 40% contingent fee, which on the $25 million damages judgment is $10 million.

How this calculation will work? My assumption is that the attorney’s fees awarded by the court are not subject to the contingent fee. So if and when the judgment is collected, and putting aside interest on the judgment, the lawyers get $10 million out of the $25 million, and the Gibson’s get the roughly $6.3 million attorney fee award. So the Gibson’s walk away with $15 million on the judgment and plus the attorney’s fees, totaling between $21-22 million. If I can confirm this, I’ll update.