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ARTICLE · 21 FEBRUARY 2014

Quantifying Discretion In Costs And Fee Approvals

When a class action settles, a motion is brought to approve the settlement.

CanadaLitigation, Mediation & Arbitration

When a class action settles, a motion is brought to approve the settlement.  Where plaintiffs' counsel requests payment, the counsel fee must be approved by the court.  Similarly, where a certification motion is heard and where the costs are not agreed upon by the parties, the costs must be fixed by the court.  Both the approval of counsel fees and the fixing of costs involve the exercise of discretion on the part of the judge hearing the motions. The exercise of discretion, by its very nature, is subjective, variable and heavily dependent on the specifics of each case.  The nature of the exercise means that while there are guidelines and factors that have been identified to assist judges, it is difficult to predict with certainty how much will be awarded.  

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