Gas-dealer bonanza: middlemen unlawfully skimming the pot?

“Class members and class counsel Eugene Stearns are claiming that companies that process class action claims are illegally taking a large part of class members’ winnings in the $1.1 billion Exxon-Mobil breach-of-contract case. Stearns argues the recovery companies are engaging in the unlicensed practice of law and duplicating work already done by his law firm. […]

“Class members and class counsel Eugene Stearns are claiming that companies that process class action claims are illegally taking a large part of class members’ winnings in the $1.1 billion Exxon-Mobil breach-of-contract case. Stearns argues the recovery companies are engaging in the unlicensed practice of law and duplicating work already done by his law firm. Florida federal Judge Alan S. Gold has voided members’ contracts with one processing company and Stearns’ firm is challenging other contracts.” Stearns boasts (or is it complains?) that he is getting not “an additional dime” for his work protecting the gas station owners from the percentage-seeking middlemen, but he is probably not in too great need of dimes at the moment, his firm having been awarded an eye-popping $249 million in fees in the action itself. (Carl Jones, “Class Action Processors Accused of Illegally Pocketing Big Share of Awards in ExxonMobil Case”, Miami Daily Business Review, Nov. 16).

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