In a significant ruling, a U.S. judge has halved the legal fee awarded to Quinn Emanuel Urquhart & Sullivan, bringing it down from $185 million to $92.4 million for its representation in a high-stakes federal healthcare insurance case. The decision was handed down by Judge Kathryn Davis of the U.S. Federal Claims Court on Thursday.
This ruling follows a federal appeals court’s decision last year that deemed the original $185 million fee excessive and instructed Judge Davis to reassess the amount. In her latest ruling, Davis stated that the 900-lawyer firm’s billed hours were “improperly inflated and must be reduced,” providing a more reasonable compensation for the firm’s extensive work on the case.
Quinn Emanuel initially received the $185 million fee for its role in securing a landmark $3.7 billion judgment in 2020 on behalf of a coalition of health insurers. This ruling arose from allegations that the Obama administration failed to uphold its obligations under the Affordable Care Act to encourage health coverage for uninsured Americans. The $185 million fee represented 5% of the total judgment fund.
During a July hearing, Quinn Emanuel argued for the reinstatement of the original fee, emphasizing the case’s complexity and the risks involved in pursuing such litigation. However, opposing parties, including health insurers UnitedHealthcare and Kaiser Foundation Health Plan, criticized the fee as “astronomical,” highlighting that it implied an hourly rate exceeding $18,000 for the firm.
Top partners at Quinn Emanuel typically bill between $1,500 and $2,000 per hour, according to court records. Moe Keshavarzi, representing the insurers, urged Judge Davis to cap the fee at a more modest range of $11 million to $23 million. In her decision, Davis noted that the proposed amount from the insurers was “so low as to disincentivize attorneys from pursuing class actions,” emphasizing the importance of fair compensation for legal representation.
As the legal landscape continues to evolve, this case exemplifies the complexities involved in high-stakes litigation and the critical balance judges must maintain in determining fair attorney fees.
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