Key Details:
- Plaintiffs’ attorneys in the Sitzer/Burnett real estate commission lawsuit are seeking one-third of the $679 million settlement from NAR and HomeServices of America—plus reimbursement for over $16 million in costs after logging more than 107,000 hours on the case since 2019.
- Attorneys are requesting a total of $226.425 million for the 100,000+ hours and $16 million in out-of-pocket expenses from working on the commission lawsuits, based on hourly rates for the attorneys, paralegals, and associates.
Attorneys for the plaintiffs in Sitzer/Burnett are requesting more than $220 million from the NAR and HomeServices commission lawsuit settlements.
According to HousingWire’s report, the attorneys claim they logged over 100,000 hours—and incurred $16 million in out-of-pocket expenses—working on the case since 2019.
To pay all the people involved and to cover those out-of-pocket expenses, they’ve requested a total of $226.425 million—roughly one-third of the total settlement amount ($679.275 million).
Breakdown of attorney fees
According to their claim, the law firms involved in the Sitzer/Burnett lawsuit logged a total of 107,500 hours working on Sitzer/Burnett since the original lawsuit was filed in 2019.
Total attorney compensation for those hours amounts to more than $92 million as of August 31, 2024, based on hourly rates:
- Lead attorney Michael Ketchmark, who personally spent almost 7,000 hours on the lawsuits, is requesting $10.1 million based on his $1,450 hourly rate.
- Partner-level attorneys at the Dirks Cameron law firm charge $1,250 per hour.
- Paralegals earn $300 an hour
- Associates earn $600 per hour, with one associate logging over 2,000 hours on the case.
- Attorney Marc Seltzer of Susman Godfrey charges the highest rate at $2,200 per hour
In addition to their hourly compensation, attorneys are requesting reimbursement for more than $16 million in out-of-pocket expenses, which they incurred “without any guarantee for success.”
Challenges faced during Sitzer/Burnett litigation
In justifying their request, the attorneys laid out the challenges they faced and the risks they undertook in working on the Sitzer/Burnett case:
- The antitrust claims were particularly challenging to prosecute, with defense attorneys filing a number of motions to dismiss and motions for summary judgment.
- Attorneys faced “substantial risk” due to the nature of the lawsuit, with a strong possibility of no recovery, given how deeply embedded were the commission practices they were trying to change.
- According to the attorneys’ filing, the Sitzer/Burnett case was “among the riskiest litigation” Class Counsel has ever pursued.
In tandem with the above arguments for the amount of compensation requested, attorneys also referenced legal precedents for their claim. The Eighth Circuit Court of Appeals has previously ruled that, in class-action lawsuits, attorney fees ranging from 25% to 36% of the total settlement amount are appropriate.
Stay tuned for updates on the final hearing for the NAR and HomeServices settlement, which is set for November 26, 2024.
