Judge Hears Arguments On Attorney Fees In State Retiree Insurance Case
From the Springfield State Journal-Register
Lawyers involved in the lawsuits that overturned a state law charging state retirees premiums for their state-subsidized health insurance are seeking more than $3 million for their services in the case.
Sangamon County Associate Judge Steven Nardulli will now have to decide what level of fees to award attorneys in the case after holding a hearing Wednesday to hear arguments for and against them.
Nardulli has until April 15 to make his decision, but he said Wednesday that he will not take that much time to make his ruling.
Nardulli's decision will determine how much retirees will get in refunds for the premiums they paid while the law was being challenged. Fees paid to lawyers will come out of the premiums collected from the retirees.
As members of the class-action lawsuit, retirees were given the opportunity to file objections to the settlement, including how attorneys fees would be paid. Nardulli said 700 to 800 objections were filed.
He said a number felt that lawyers in the case should not be paid from premiums collected from retirees and held in an account pending outcome of the case. Instead, the retirees said the state, as the losing party in the case, should be on the hook to pay the lawyer fees. Nardulli, though, said that was not one of the options available to him.
Multiple lawsuits were filed seeking to overturn the state law that began charging all retirees premiums for their state-subsidized health insurance as a way of saving the state money. Previously, workers who retired with 20 or more years of service received the health insurance premium free.
Nardulli consolidated the lawsuits, but multiple teams of lawyers continued to work on them. The state Supreme Court ruled last year that retiree health insurance is a protected pension benefit and that the state could not charge premiums to people who were previously exempt.
Nardulli previously rejected a request by lawyers that they be paid up to 15 percent of the $63 million in premiums collected from retirees. Instead, he told lawyers to document the hours they worked, the fees they charge and any other factors relevant to the case.
Read more in our daily News Update...
From the Springfield State Journal-Register
Lawyers involved in the lawsuits that overturned a state law charging state retirees premiums for their state-subsidized health insurance are seeking more than $3 million for their services in the case.
Sangamon County Associate Judge Steven Nardulli will now have to decide what level of fees to award attorneys in the case after holding a hearing Wednesday to hear arguments for and against them.
Nardulli has until April 15 to make his decision, but he said Wednesday that he will not take that much time to make his ruling.
Nardulli's decision will determine how much retirees will get in refunds for the premiums they paid while the law was being challenged. Fees paid to lawyers will come out of the premiums collected from the retirees.
As members of the class-action lawsuit, retirees were given the opportunity to file objections to the settlement, including how attorneys fees would be paid. Nardulli said 700 to 800 objections were filed.
He said a number felt that lawyers in the case should not be paid from premiums collected from retirees and held in an account pending outcome of the case. Instead, the retirees said the state, as the losing party in the case, should be on the hook to pay the lawyer fees. Nardulli, though, said that was not one of the options available to him.
Multiple lawsuits were filed seeking to overturn the state law that began charging all retirees premiums for their state-subsidized health insurance as a way of saving the state money. Previously, workers who retired with 20 or more years of service received the health insurance premium free.
Nardulli consolidated the lawsuits, but multiple teams of lawyers continued to work on them. The state Supreme Court ruled last year that retiree health insurance is a protected pension benefit and that the state could not charge premiums to people who were previously exempt.
Nardulli previously rejected a request by lawyers that they be paid up to 15 percent of the $63 million in premiums collected from retirees. Instead, he told lawyers to document the hours they worked, the fees they charge and any other factors relevant to the case.
Read more in our daily News Update...