It is not atypical for class actions to be brought seeking
damages that can be characterized as nominal in nature. An
oftentimes powerful incentive for potential class representatives
to put their names on a putative class action is the promise of an
incentive payment or award, paid to the class representative out of
a class settlement fund purportedly to compensate the named
plaintiff for work done on behalf of a class and assumption of
those risks that come along with naming yourself in a lawsuit.
However, the Eleventh Circuit Court of Appeals in Johnson v.
NPAS Sols., LLC, No. 18-12344 (11th Cir. Sept. 17, 2020) has
effectively nixed this practice, applying Supreme Court precedent
from the 1880s to reverse what has become a routine practice in the
class action settlement context, as well as increasing the scrutiny
applied to attorneys' fees awards.
