Case Resources
Search this Case
in Google Scholar
on the Web
Google Web Search
MSN Web Search
Yahoo! Web Search
in the News
Google News Search
Google News Archive Search
Yahoo! News Search
in the Blogs
BlawgSearch.com Search
Google Blog Search
Technorati Blog Search
in other Databases
Google Book Search
Justia Research Resources
Justia.com
Supreme Court Center
US Regulation Tracker
US District Court Opinions
Federal District Court Civil Case Filings
Legal Blog Search
Legal Podcast Search
USA Constitution Annotated
Online Research Resources
Cornell LII
Cornell Wex Dictionary & Encyclopedia
LLRX.com - Legal Research
Expert Witness Directory
Nolo Consumer & Business
US Court Forms
WashLaw Directory
World LII
Cases Provided By
Creative Commons
public.resource.org
In Re: the Prudential Insurance Company of America Salespractices Litigation.richard P. Krell, Mdl Transfer, N.d. Ohio, Dnj Civil Action No. 95-6062 v. Prudential Insurance Company of America,richard P. Krell, As Well As Objectors Elizabeth Bajek,amanda Bajek, Helen Bartsch, Mark Ciconte, Raymond Dolce,margaret Dolice, Louise Duggan, Peter Duggan, Charlesduncan, Mary Howe, Mary Krell, William Morris, Diana Racer,thomas Racer, Gweneth Reidel, the Estate of Carl J. Scalzo,marie Scalzo, Terry Sligar, Alice Smith, Jerry Smith, Andwilliam Walton, Appellants at Nos. 97-5155/5156/5312.in Re Prudential Insurance Company America Sales Practicelitigation Agent Actions.richard Johnson, Intervenor-plaintiff in District Court,richard E. Johnson, Appellant at No. 97-5217
United States Court of Appeals, Third Circuit. - 148 F.3d 283
Argued Jan. 26, 1998.Decided July 23, 1998
Michael P. Malakoff (Argued), Malakoff, Doyle & Finberg, Pittsburgh, Pennsylvania, for Appellants Richard P. Krell, et al.
Lynde Selden, II, Lynde Selden Chartered, San Diego, California, for Appellant Richard E. Johnson.
Melvyn I. Weiss (Argued), Milberg, Weiss, Bershad, Hynes & Lerach, New York City, Allyn Z. Lite, Goldstein, Lite & DePalma, Newark, New Jersey, for Appellee George A. Zoller, Class Action Plaintiff Representative.
Reid L. Ashinoff (Argued), Michael H. Barr, Sonnenschein, Nath & Rosenthal, New York City, for Appellees Prudential Insurance Company of America and Ron D. Barbaro.
Brian S. Wolfman (Argued), Alan B. Morrison, Public Citizen Litigation Group, Washington, DC, for Amicus Curiae-Appellant Public Citizen, Inc.
John J. Gibbons, Gibbons, Del Deo, Dolan, Griffinger & Vecchione, Newark, New Jersey, for Appellee Robert C. Winters.
Frederick B. Lacey, LeBoeuf, Lamb, Greene & MacRae, Newark, New Jersey, for Appellee Frances K. Beck, as Executrix of the Estate of Robert A. Beck.
Before: SCIRICA, ROTH and RENDELL, Circuit Judges.
SCIRICA, Circuit Judge.
TABLE OF CONTENTS
OPINION OF THE COURT ...................................................... 288
I. BACKGROUND AND PROCEDURAL HISTORY ................................. 290
A. The Multi"State Life Insurance Task Force .................. 290
B. The Federal Class Action ................................... 292
1. The Proposed Settlement ............................. 294
a. The Alternative Dispute Resolution Process .... 295
b. Basic Claim Relief ............................ 296
c. Enhancements To the Task Force Plan ........... 296
2. The Fairness Hearing ................................ 298
II. ISSUES RAISED ON APPEAL AND STANDARD OF REVIEW .................... 299
III. JURISDICTION ...................................................... 299
A. Subject Matter Jurisdiction ................................ 299
1. Federal Question Jurisdiction as a Basis for
Supplemental Jurisdiction ......................... 300
2. Diversity Jurisdiction as a Basis for Supplemental
Jurisdiction ...................................... 303
B. Personal Jurisdiction ...................................... 306
C. Article III ................................................ 306
IV. CLASS CERTIFICATION ............................................... 307
A. Settlement"Only Class Certification ........................ 307
B. Class Certification under Rule 23 .......................... 308
1. The Rule 23(a) Criteria ............................. 309
a. Numerosity .................................... 309
b. Commonality ................................... 309
c. Typicality .................................... 310
d. Adequacy of Representation .................... 312
2. The Rule 23(b) Criteria ............................. 313
a. Predominance .................................. 314
b. Superiority ................................... 315
C. Conclusion ................................................. 316
V. THE FAIRNESS OF THE PROPOSED SETTLEMENT ........................... 316
A. The Girsh Factors .......................................... 318
1. The complexity and duration of the litigation ....... 318
2. The reaction of the class to the settlement ......... 318
3. The stage of the proceedings and amount of discovery
completed ......................................... 319
4. The risks of establishing liability and damages ..... 319
a. Replacement Claims ............................ 320
5. The risks of maintaining the class action through
trial ............................................. 321
6. The ability of the defendants to withstand a greater
judgment .......................................... 321
7. The range of reasonableness of the settlement fund
in light of the best possible recovery and all the
attendant risks of litigation ..................... 322
B. Other Objections ........................................... 324
1. The Rules Enabling Act and the McCarran"Ferguson Act 324
2. Failure to Allow Discovery .......................... 324
C. "Other Sales Claims " ...................................... 325
1. The Alleged Expansion of the Class .................. 325
2. Adequacy of Class Notice ............................ 326
D. Conclusion ................................................. 328
VI. ATTORNEYS' FEES ................................................... 329
A. The Fee Agreement .......................................... 329
B. Fee Opinion ................................................ 330
C. Analysis ................................................... 333
1. "Clear"Sailing" Fee Agreement ....................... 334
2. Adverse Effect on Class Members ..................... 335
3. Fairness of the Award ............................... 336
a. The Value of the Settlement ................... 336
b. The Appropriate Percentage Recovery ........... 338
c. Lodestar Calculation .......................... 340
i. Multiplier .............................. 340
ii. Time Records ............................ 341
D. Conclusion ................................................. 342
VII. KRELL'S MOTION TO RECUSE .......................................... 342
A. Procedural History ......................................... 342
B. Legal Standard ............................................. 343
C. Krell's Arguments on Appeal ................................ 343
1. Ex Parte Meetings ................................... 343
2. The Conference With State Insurance Regulators ...... 344
3. Rutt v. Prudential .................................. 345
VIII. CONCLUSION ........................................................ 346