WPC XgLo>}F)KKi:_eLT}BR{Nz?gp#+sV,v^)Gy|'oY.!۞(Q`irP0_ xV}w(NCu Z펈*گ!ߗOKDvFӎ 6⣛VO/ ߅~R%:1ŮDswE[AQ,ȿn@@_a?6}!_c;ɦ{\2V}1PPG۫[&oMW}N[0n؃HQPjA#K +6Vr Q#KtSl_#iÔ%߀Ar;姎sdZcjCk0E;~eTk!:7r6_KT\ "-Nb]܍(^ V`ZNsPz QBU2ts_;u/?U:>r 0nB 0< 0<( 0 0 9 02  0 0b 0( D+? AQj^  0wU#J B 0CU@1 0qs 0 #UN %,M2(6N^ 0T`4 m\  `&Times New Roman' D R A F T Training0Training .   <:Default Par1XXX<:Default Para<:Footnote Ref )$(..      XkXXXXkXXXk  _(2)$$ ,!..      X{HXXXX{HXXX{H  (2)$$ ,!..      X{HXXXX{HXXX{H     )$*..      XkXXXXkXXXk  _XXk  XkXZJFzlx p @X@E^xx^ (#(# (#(#XXk(2)$$ ,!..      X{HXXXX{HXXX{H  ݃ Level 1 Level 2 Level 3 Level 4 Level 5(2)$$ ,!..      X{HXXXX{HXXX{H  (2)$$ ,!..      X{HXXXX{HXXX{H  ($'dxd C<< c  )$"..      XkXXXXkXXXk  _XXk  1  B  C    0 (2)$$ ,!..      X{HXXXX{HXXX{H  kIA`2WP TypographicSymbols d($    (@ Z(Times New Roman (2$ ,!..      X{HXXXX{HXXX{H  {HXXX{H  0  #|x(r,$..      Xg$XXXXg$XXXg$HP LaserJet 5M,,,,0(9 Z6Times New Roman RegularX<  :Body Text I1 X X a0:i+00U  )$"..      XkXXXXkXXXk  _XXk  1    )$)..      XkXXXXkXXXk  _XXk  XkX*ZJFzlx p @X@E^xx^ (#(# (#(#XXk ,!..      XkXXXXkXXXk  _       >  _Dotson_Ԁv.BellAtlanticMaryland,Inc.,(CaseNo.CAL9921004)consolidatedwith_Scrocco_Ԁv.  BellAtlanticMaryland,Inc.,CaseNo.CAL0009962,2003_MDBT_Ԁ11(CircuitCourtforPrince  GeorgeXXXXk=XkXXXsCounty)(November11,2003)(perStevenI.Platt) | Facts:Intheseconsolidatedcases,classcertificationwasgiventoaclassdefinedasXXXXk_AXkXXXall_ J personsXXXXk@XkXXXԀ(excludingtheTrialJudgeandmembersofhisimmediatefamily)whoarecurrent 2  and/orformerresidentialsubscribersoftelephoneservicesprovidedbyBellAtlanticMaryland.  j ..foralatepaymentchargethatexceedssixpercent(6%)perannumandwhohavemadesuch  P paymentswithintheapplicablelimitationsperiod.XXXXk@XkXXX  6  XTheclassplaintiffsandBellAtlanticsubsequentlysubmittedaStipulationofSettlement    andmovedforpreliminaryapproval.OnDecember12,2002,theCircuitCourtforPrince   GeorgeXXXXk=XkXXXsCounty(_McKee_,C.J.)grantedpreliminaryapproval.Noticeswerethensentout   pursuanttotheCourtXXXXk=XkXXXsorder.OnApril11,2003,certainobjectingclassmembersoffered h  objectionstoStipulationofSettlement. P   6  TheissueinthisOpinionwaswhethertheproposedsettlement,inparticularthepart l relatingtoattorneysXXXXk=XkXXXԀfees,wouldbeapproved. R  X l<` _Synposis_:Judge_Chasanow_,inhisdissentingopinioninUnitedCableTelevisionofBaltimore   v.LouisBurchetal.,354Md.658,694(1999),predictedthattheCourtofAppealsXXXXk=XkXXXԀdecisionin  thatcasewouldhaverepercussionsforclassactionlitigation.ThiscasefellintothatXXXXkAXkXXXnewvista.X XXXk&T%XX   #X X%&T #InUnitedCable,theCourtheldthatArticleIII,'57oftheMarylandConstitutionimposeda6%  perannumcaponlatefees.Thatsectionprovides, TheLegalRateofInterestshallbeSixper s cent.perannum;unlessotherwiseprovidedbytheGeneralAssembly. `  XTheCourtstatedthatwhileitisnotproperforaCourttorewriteaproposedsettlement, : theproponentsofthesettlementmayrevisetheiragreementstoovercometheCourtsobjections. 'w Ifchangesaresubstantial,itmaybenecessarytobeginanewthenoticeandreviewprocess. d  X XTheSettlementAgreementasproposedwasunacceptableonseveralgrounds.The > proposednoticetoclassmemberswasinadequateastoformandcontent.TheDirectMailnotice  + wassilentregardingthe$13millioninattorneysXXXX =XkXXXԀfees;instead,itgaveawebsiteaddresswhere !  informationregardingattorneysXXXXk=XkXXXԀfeescouldbeobtained.TheCourtstatedthatpotentialclass "! membersshouldbenotifiedbycounselofthepotentialextentofthefeeaward. #"  X XWithrespecttothe$13millionamountitself,theCourtfoundtherelativelysmallbenefit i% $ receivedbytheclassmembersdidnotjustifythetransactioncostsoftherecovery,inparticular O&!% the$13millioninattorneysXXXXk=XkXXXԀfees.Theremustbearationalconnectionbetweenthefeeaward 5'"& andtheamountoftheactualdistributionoftheclass.Thelobbyingfeesincurredbytheclass (m#' attorneysforlobbyistsservicesintheGeneralAssemblyonlegislationwhichwouldhave )S$( undonetheUnitedCabledecision,whileperhapssignifyinganXXXXk>XkXXXheroicXXXXk=XkXXXԀeffort,wasnot )9%) _communicatedtotheclass.Thebattleinsteadwasundertakenprimarilytopreservepotential  legalfeeswhichmightbeearned,ratherthantoprotectindividualrecoveriesbyeachmemberof | theclass. b  X XTheCourtrejectedclasscounselXXXXk=XkXXXsargumentthatthepercentageoffundtheoryorthe .  lodestarmethod,crosscheckedagainstMarylandRule1.5(e),justifiedtheawardunderUnited   Cable.Rather,underUnitedCableacircuitcourtXXXXkAXkXXXhaswidediscretiontoconsiderclass  f counselXXXXk=XkXXXsrequestsforfeesbasedontheLodestarMethod,PercentageofFundmethod,orablend  N ofboth.XXXXk@XkXXXԀ354Md.at687.SeealsoFriolov.Frankel,373Md.501,515(2003)(inassessing  6 attorneysXXXXk=XkXXXԀfees,underthelodestaroranyotherapproach,thefeemustbereasonable).     X XTheCourtwasnotpersuadedthatthe$64.9millionsettlementwasjustified;insteadthe   CourthelditwasaXXXXkAXkXXXphantom.XXXXk@XkXXXԀTheawardofattorneysXXXXk=XkXXXԀfeeswasbasedonphantomnumbers h  andcalculationsbasedthereon.Instead,theCourtrecommendedtheXXXXkAXkXXXpracticalsolution,XXXXk@XkXXXԀwhich P  istomakesurethefeeawardedisappropriatetothevalueactuallyreceivedbytheclass 8  members.TheremustbeaXXXXkAXkXXXrationalconnection.    X XThelackofadefendantXXXXk=XkXXXsoppositionshouldnotdiminishacourtXXXXk=XkXXXsvigilance.Defendants V areinterestedinthebottomlineamount,nottherelativedistribution.Rather,theCourtherewas > concernedbytheXXXXkAXkXXXclearsailingXXXXk@XkXXXԀagreementbetweencounsel.Aclearsailingagreementisone $ wherethepartypayingthefeesagreesnottocontesttheamounttobeawardedbythefeesetting   courtsolongastheawardfallsbelowanegotiatedceiling.Suchagreementsareofconcern  becauseapotentialforconflictexistsbetweenaclassanditsattorneyswhenboththecommon n fundisreducedbytheattorneysXXXXk=XkXXXԀfeesandwhenfeesarepaiddirectlytoattorneys.Thedanger T existsforclassattorneystourgeaclasssettlementatalowfigureinexchangeforXXXXkAXkXXXredcarpet < treatmentXXXXk@XkXXXԀonfees. $  X XTheinstantcasecontainedjustaclearsailingagreement.Thatfact,andtheconcernit \ raises,coupledwiththelackofclearnoticetotheclassoftheamountandcertaintyofthefees, B causedtheCourttodenytheXXXXkAXkXXXMotionforFinalApprovalofClassActionSettlementAwardof ( AttorneysXXXXk=XkXXXԀFeesandExpensestoClassCounselandEntryofFinalJudgment.XXXXk@XkXXX    X  Counsel t"  F.PaulBland,Jr.,Esquire @$" # X  X#&  MichaelJ.Quirk,Esquire#&&݌ &%# Ќ   # X  X#R'  1717MassachusettsAvenue,N.W.,Suite800#R''݌  &v $ Ќ   # X  X#(  Washington,D.C.20036#(Q(݌ &\!% Ќ   # X  X#(  #()݌̌   # X  X#Y)  BruceL.Marcus,Esquire#Y))݌ ((#' Ќ   # X  X#*  Marcus&Bonsib#*E*݌ )$( Ќ   # X  X#*  CapitalOfficePark#**݌ *$) Ќ   # X  X#j+  6411IvyLane,Suite116#j++݌  Ќ   # X  X#,  Greenbelt,Maryland20770#,V,݌  Ќ   # X  X#,  #,-݌̌   # X  X#`-  IraH.Raphaelson,Esquire#`--݌ b Ќ   # X  X#.  BrianP.Brooks,Esquire#.N.݌ H Ќ   # X  X#.  CharlesF.Connolly,Esquire#./݌ . ~ Ќ   # X  X#/  OMelveny&Myers,LLP#//݌  d Ќ   # X  X#;0  55513thStreet,N.W.#;0r0݌  J Ќ   # X  X#0  Washington,D.C.20004#0+1݌  0 Ќ   # X  X#1  #11݌̌   # X  X#32  SethD.Goldberg,Esquire#32j2݌    Ќ   # X  X#2  JohnJ.Beins,Esquire#2 3݌   Ќ   # X  X#3  PaulGleiberman,Esquire#33݌ x  Ќ   # X  X#Q4  5335WisconsinAvenue,N.W.#Q44݌ ^  Ќ   # X  X# 5  Suite910# 5A5݌ D  Ќ   # X  X#5  Washington,D.C.20015#55݌ *z  Ќ   # X  X#e6  #e66݌̌   # X  X#6  ConnieKratovilLavelle,Esquire#6%7݌ F Ќ   # X  X#7  FrankKratovil,Esquire#77݌ , Ќ   # X  X#_8  Kratovil&Kratovil#_88݌  Ќ   # X  X#9  P.O.Box522#9F9݌  Ќ   # X  X#9  Stevensville,Maryland21666#99݌  Ќ   # X  X#s:  #s::݌̌   # X  X#:  SusanStevensMiller,Esquire#:3;݌ Z Ќ   # X  X#;  ValerieGreen,Esquire#;;݌ @ Ќ   # X  X#i<  MarylandPublicServiceCommission#i<<݌ &v Ќ   # X  X#(=  WilliamDonaldSchaefferTower#(=_=݌  \ Ќ   # X  X#=  6St.PaulStreet,16thFloor#=>݌ B Ќ   # X  X#>  Baltimore,Maryland21202#>>݌ ( Ќ   # X  X#[?  #[??݌̌   # X  X#?  KieronF.Quinn,Esquire#?@݌  Ќ   # X  X#@  RichardS.Gordon,Esquire#@@݌   Ќ   # X  X#PA  QuinnGordon&Wolf,LLP#PAA݌ p!  Ќ   # X  X#B  40WestChesapeakeAvenue,Suite408#B!% Ќ   # X  X#xE  2401PennsylvaniaAvenue,Suite410#xEE݌ &$"& Ќ   # X  X#8F  Washington,D.C.20037#8FoF݌ ' #' Ќ   # X  X#F  #F%G݌̌   # X  X#wG  PhilipO.Foard,Esquire#wGG݌ )$) Ќ   # X  X#,H  Foard,Gisriel,OBrien&Ward,LLC#,HcH݌ l*%* Ќ   # X  X#H  29WestSusquehannaAvenue,Suite302#H&I݌  Ќ   # X  X#I  Towson,Maryland21204#II݌ | Ќ   # X  X#fJ  #fJJ݌̌   # X  X#J  #J&K݌̌   # X  X#xK  __#xKK݌ .  Ќ   # X  X#L  #LNL݌̌