IN THE SUPERIOR COURT OF WASHINGTON FOR KING COUNTY

Transcription

1 HON. JULIE SPECTOR Noted for Hearing: January, at 1:00 p.m. With Oral Argument IN THE SUPERIOR COURT OF WASHINGTON FOR KING COUNTY 1 1 J.P., by and through his guardians and parents, M.M. and D.P., on his own behalf and on behalf of all similarly situated individuals, v. Plaintiff, PREMERA BLUE CROSS, a Washington Corporation, Defendant. NO SEA CLASS COUNSEL S REPLY IN SUPPORT OF MOTION FOR ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS I. INTRODUCTION No class member has objected to counsel s request for attorneys fees, costs and incentive awards for the class representatives. Hamburger Decl. (1//1),. Over 00,000 Premera insureds were specifically informed about these requests and about their right to object. Id., ; see Appendix to Motion for Preliminary Approval, pp. 1,. While a handful submitted comments, not one individual objected. See Hamburger Decl. (1//1),. This is significant evidence that the proposed fee request is fair. In re Ravisent Tech., Inc. Sec. Litig., 0 WL 01, * (E.D. Pa., April, 0) (collecting cases). We find that the total absence of objections to the requested fees weighs in favor of finding that the percentage of the settlement fund requested [%] is appropriate. See In re Linerboard Antitrust Litig., MDL No., 0 WL 0, at * (E.D.Pa. June, 0) ( The absence of objections supports approval of the ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS 1 TEL. () -00 FAX () -0

2 1 1 Fee Petition. ); In re Rent-Way Sec. Litig., 0 F. Supp.d 1, (W.D.Pa. 0) ( [T]he absence of substantial objections by other class members to the fee application supports the reasonableness of Lead Counsels request. ); In re Aetna, 01 WL, at * ( [T]he Class members view of the attorneys performance, inferred from the lack of objections to the fee petition, supports the fee award. ). Bradburn Parent Teacher Store, Inc. v. M, F. Supp. d, (E.D. Pa. 0) (awarding class counsel %). Class counsel seeks a fee award of $1,,000, or % of just the cash fund. This amount represents less than % of the total benefit to class members, which includes not only the back benefits cash but also the value of prospective relief securing coverage of medically necessary NDT and ABA services for all Premera insureds. See Vizcaino v. Microsoft Corp., 1 F. Supp. d 1, 0 (W.D. Wash. 01) (Applying Washington law, the benchmark percentage of recovery fee is % of the recovery obtained, including future benefits. ) (emphasis added). The value of total benefit to class members has been enhanced by class counsel s recent victory in O.S.T. v. Regence BlueShield, Wn.d, P.d, (1). In O.S.T., the Washington Supreme Court concluded that blanket exclusions like the neurodevelopmental therapy exclusion at issue in this case violate the Washington state Mental Health Parity Act. Id. Immediately after the decision, Insurance Commissioner Mike Kreidler ordered Washington insurers to administer their plans in a manner consistent with the decision by eliminating all blanket exclusions of medically necessary mental health services. Hamburger Decl. (1//1), Exh. M. In short, due to the efforts of class counsel and the named plaintiffs in this and other cases, all Washington state insureds are no longer subject to special blanket exclusions of medically necessary mental health services. ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS TEL. () -00 FAX () -0

3 1 1 Class counsel also seeks reimbursement of $,.1 in costs incurred to date in all three cases 1 and incentive awards of $,000 for each named plaintiff family in each case (totaling $0,000) to account for their time, effort and risk in prosecuting these cases. Class counsel requests that this Court specifically approve an incentive award of $,000 to J.P. by and through his parents and guardians, M.M. and D.P. II. ANALYSIS A. The Extraordinary Results in this Case Merit An Award of the Requested Attorneys Fees. As described in the opening brief, Washington s percentage method of awarding attorneys fees is results-oriented. See Bowles v. Washington Dept. of Ret. Sys., 1 Wn.d,, P.d 0 (); Vizcaino v. Microsoft Corp., 0 F.d, (th Cir. 0). Attorneys who achieve remarkable results in extraordinary circumstances should receive compensation that reflects the risks undertaken and the results achieved. Morris v. Lifescan, Inc., Fed. Appx., (th Cir. 0); Paul, Johnson, Alston & Hunt v. Graulty, F.d, (th Cir. ) ( That percentage amount can then be adjusted upward or downward to account for any unusual circumstances involved in th[e] case. ). Here, class counsel achieved a resolution that (1) guaranteed coverage of neurodevelopmental and Applied Behavior Analysis (ABA) therapies without age or treatment limitations; () established clinical coverage criteria for ABA therapy, 1 Class counsel has updated the litigation expenses as of December, 1. Hamburger Decl. (1//1),. The final amount will increase slightly, reflecting costs associated with copying and filing the final briefs in these cases. The lodestar cross-check in this matter reveals a modest multiplier of.0. Although the cross-check does not apply under Washington substantive law, the multiplier is well within the range of reasonableness. Vizcaino, 1 F. Supp. d at 0, 0. Class counsel has incurred approximately 1 additional hours of attorney time related to the three cases that is not reflected in the timesheets filed with the Court on September 1, 1. Hamburger Decl. (1//1),. ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS TEL. () -00 FAX () -0

4 1 1 including the disclosure of the relevant billing codes, so that Premera insureds can easily determine how to obtain ABA therapy; () obtained a judicial determination that all blanket exclusions of medically necessary mental health services violate the Washington Mental Health Parity Act, reaching far beyond the specific exclusions at issue in this case; () established a settlement fund of $. million for payment of back benefits for neurodevelopmental therapies; () achieved payment of all claims from the Settlement Fund at 0%; and () ensured that there will be residual funds from which a cy pres award will be made to the Legal Foundation of Washington (%) and to an organization or organizations that assist individuals with developmental conditions and their families access health care and health coverage (%). As the Seattle Times concluded in May 1, class counsel became de facto regulators when it came to enforcement of the Washington Mental Health Parity Act: [Insurance Commissioner Mike] Kreidler and the Legislature left enforcement to class-action lawyers, in particular attorneys Rick Spoonemore and Ele Hamburger. These attorneys settlement with Premera this week is a significant victory for families raising children with autism. True mental health parity has a long way to go but it is now a journey a little less far. Hamburger Decl. (/1/1), Exh. A, State Needs Mandate to Cover Autism Therapy, The Seattle Times, May, 1. Where, as here, attorneys undertake risky litigation in cases of first impression and pursue the cases vigorously, successfully, and with results that benefit not only class members but also the general public, the attorneys fee award should reflect those stellar results. B. Class Counsel s Out-Of-Pocket Costs and Expenses Should Be Reimbursed. No class member objects to payment of class counsel s litigation costs, which given the scope of the litigation, are quite modest. As of December, 1, class ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS TEL. () -00 FAX () -0

5 1 1 counsel had incurred $,.1. Hamburger Decl. (1//1),. All of those costs were necessary to achieve the settlement of this matter and are reasonable. C. Incentive Awards of $,000 per Plaintiff Family Are Appropriate. The proposed incentive awards are reasonable. Out of 00,000 individuals notified, not a single person objects to compensating the named plaintiffs for the time, expense, and risk associated with being a named plaintiff in this lawsuit. Id.,. The parents of the named plaintiffs were subjected to extraordinary written discovery, emotionally difficult depositions related to their children s medical and mental health history, multiple mediations and court hearings. Through it all, the named plaintiffs parents kept in mind that this fight was bigger than just obtaining health coverage for their own children. As the mother of plaintiffs K.N. and T.N. saw it, this lawsuit was a fight to ensure that all children with developmental conditions would get the coverage they need so that they can function in ways that others take for granted: I worried about how they would learn the basis for their lives things that other people take for granted, things that are necessary for them to have a life worth living. I knew we could not wait to get them help. They need help now and so did many other children. That is why we became a part of this lawsuit, despite the stress, difficulty and expense associated with it. P.N. Decl., (emphasis added). Incentive awards are designed to encourage parents, like those of P.N. and the other named plaintiffs, to stand up and stand for other families who might not be able to withstand the pressures (both financial and emotional) of litigation. The parents of the named plaintiffs did the right thing not only for their children, but for all Washington children. In light of the extraordinary benefits of this litigation, their efforts should be recognized and fairly compensated. ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS TEL. () -00 FAX () -0

6 Plaintiff J.P. is before the Court in this case. Class counsel requests that this Court specifically approve an incentive award of $,000 to J.P. by and through his parents, M.M. and D.P. III. CONCLUSION For the foregoing reasons, the class respectfully requests that this Court grant its Motion and award attorneys fees of $1,,000, reimbursement of all litigation costs and out-of-pocket expenses totaling at present $,.1, and an incentive award of $,000 to J.P. by and through his parents, M.M. and D.P. 1 1 DATED: December, 1. /s/ Eleanor Hamburger Richard E. Spoonemore (WSBA #) rspoonemore@sylaw.com Eleanor Hamburger (WSBA #) ehamburger@sylaw.com Attorneys for Plaintiff Class ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS TEL. () -00 FAX () -0

7 CERTIFICATE OF SERVICE I certify, under penalty of perjury and in accordance with the laws of the State of Washington, that on December, 1, I caused a copy of the foregoing document to be served on counsel of record as indicated below: Barbara J. Duffy Gwendolyn C. Payton Ryan P. McBride LANE POWELL PC 1 Fifth Avenue, Suite 0 Seattle, WA 1 Attorneys for Defendants [x] By Tel duffyb@lanepowell.com paytong@lanepowell.com mcbrider@lanepowell.com DATED: December, 1, at Seattle, Washington. 1 /s/ Eleanor Hamburger Eleanor Hamburger (WSBA #) 1 ATTORNEYS FEES, EXPENSES AND INCENTIVE AWARDS TEL. () -00 FAX () -0