“Texas has a unique solution to the problem of coupon settlements: if the lawyers settle for coupons or non-cash relief, they have to be paid in coupons or non-cash relief.” Some scoffed at this as a gimmick, but it seems to have had an effect for the better, most notably in a recent case where the court “prohibited a $1.1 million fee in a $0 settlement over immaterial merger disclosures.” [Ted Frank, Point of Law]
4 Comments
Snicker
The Texans are smarter than any lawyer.
Don’t sing the praises of Texans too quickly. There is still the infamous Eastern District of Texas that has become a haven for patent infringement lawsuits.
http://en.wikipedia.org/wiki/United_States_District_Court_for_the_Eastern_District_of_Texas
What about class action suits in which the remedy desired is not damages but specific performance? Such a resolution can be quite legitimate, but don’t statutes of this type make it impossible for impecunious plaintiffs to pursue such a suit?
Hey!
I didn’t say Texans were SMART!