Lawyers first to be paid in Flint settlement
AS the claims process for the $US626 million ($NZ1.03 billion) settlement for victims of the Flint water crisis continues and Flint residents wait for their awards, a Detroit area federal judge recently granted the payment totalling $US47 million in attorney fees and expenses.
In a court order earlier this month, United States District Judge Judith Levy authorised the release of a portion of the attorney fees and litigation costs, meaning law firms involved in the protracted litigation will be reimbursed for expenses incurred during the process as well as a portion of their fees.
Levy’s ruling will release
$39 million in fees to the law firms who led the settlement negotiations that resulted in a $600 million award from the State of Michigan, along with an additional $25 million contributed by the City of Flint, Rowe Engineering, and Flint’s McLaren Hospital.
Litigation against those entities and the eventual settlement negotiations took place over four years. The settlement deal was announced by governor Gretchen Whitmer in August 2020.
The $7 million in expenses will be paid to dozens of lawyers from a number of different firms for direct costs incurred during the litigation process. Those lawyers were required to submit receipts for the money that was spent.
‘‘As set forth in . . . the Settlement Agreement, counsel for individual plaintiffs and class members shall be reimbursed and paid solely out of the FWC qualified settlement fund,’’’ Levy wrote in the May 12 order, noting the court had determined the methodology for attorney fees and expenses in an opinion issued in February 2022.
For those affected by the water crisis, it will likely be months before any payments start going out.
The claims process, overseen by courtappointed special master Deborah Greenspan, involves claims filed by more than 40,000 residents.
Initially, Greenspan said the claims work would be completed about now, but delays and problems with a thirdparty consultant became clear late last year. Now, the process is expected to last the rest of the year.
Award notices have started going out to residents notifying them of the status of their claims and alerting them to any issues that might need to be addressed.
Many victims have criticised the size of the award from the State of Michigan, saying it does not amount to the harm caused by the water contamination crisis, sparked by a botched water supply switch overseen by state and local officials.