Federal Circuit: Haggart v. US

Class actions, fees, estoppel

Where the government is the deft in a class action under a statutory cause of action that shifts fees, it has standing to contest the fee award.

As there is a policy interest in government candor, the government is not estopped from challenging fees that it now claims to have mistakenly not opposed an an earlier proceeding.

As the government's objection was to the mechanics of the disbursement, previous acquiescence to the plan does not judicially estop it from challenging it later.  (In a footnote, a note that estoppel probably doesn't apply to FG.)

Abuse of discretion for lower court to approve settlement that relied on valuations of unassessed property without any disclosure of methodology of valuation.

Uncertainty as to the precise valuations of individual claims does not bar application of the common fund doctrine.

Opt-in classes can be subject to the common fund doctrine, and as there is no statutory requirement that the class members pay fees, a fee agreement is subject to equitable challenge.

Where equitable a fee-shifting statute displaces allocation of fees under the common fund doctrine.  Circuit split flagged.

http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/14-5106.Opinion.1-6-2016.1.PDF