C. DARNELL JONES, II, District Judge.
This is a wrongful death case involving allegations of benzene exposure on various vessels owned by Mclean Contracting Co. The deceased, Christopher Carlile Jr., was a member of the crews of those vessels. The complaint alleged that, during Mr. Carlile's employment with McLean, he was exposed to benzene, he developed acute myeloid leukemia (AML) as a result of this exposure, and he died at thirty-eight because of his AML in 2012. His three surviving heirs are Laura Carlile, wife and administratrix of his estate, and his two children, Madelynn Rose Carlile and Christopher Pennock Carlile, III. Madelynn is seven and Christopher is five.
After more than three years of litigation, the parties settled and Ms. Carlile now petitions this Court for approval of the settlement agreement involving her minor children pursuant to Pennsylvania Rule of Civil Procedure 2039(a).
Courts typically afford "considerable weight" to the judgment of counsel and the parties in determining the "fair value of the lawsuit." Calvert v. Gen. Acc. Ins. Co., No. 99-3599, 2000 WL 124570, at *6 (E.D. Pa. Feb. 2, 2000). Given the technical aspects of the subject matter and the agreement of all the parties, this Court will not second-guess the settlement amount. However, with respect to the sufficiency of the petition for purposes of approving the allocation of the proceeds between counsel and the minors, three significant deficiencies stand out.
The analysis begins with the "lodestar amount" determined by "the court of common pleas in the county with jurisdiction over the minor[.]" Id. In deciding whether to deviate from that amount, "courts consider the following factors: (1) the amount of work performed; (2) the character of the services rendered; (3) the difficulty of problems involved; (4) the importance of the litigation; (5) the degree of responsibility incurred; (6) whether the fund involved was `created' by the attorney; (7) the professional skill and standing of the attorney in her profession; (8) the result the attorney was able to obtain; (9) the ability of the client to pay a reasonable fee for the services rendered; and (10) `very importantly' the amount of money in question." Id. (citing to Gilmore v. Dondero, 582 A.2d 1106, 1109-10 (Pa. Super. 1990)).
The petition does not address these factors directly and, as counsel conceded at the hearing, no such analysis was conducted in determining counsel's fee. Instead, the petition states that the fee is appropriate "due to the complexity of the medical, scientific and legal issues involved in this case and the extensive and sophisticated work performed by counsel." Pet. 18. Counsel had to establish Mr. Carlile's entire work history and benzene exposure by reviewing "tens of thousands" of Defendants' documents. Id. at 19. Counsel also "obtained and reviewed over 6,400 pages of medical records," and took twelve depositions and defended three others. Id. And he interviewed other witnesses and worked with various experts.
That information is not enough to perform a thorough lodestar analysis. To start, the petition does not say where the children live, an indispensable fact in determining the reasonableness of counsel's fee. See Nice, 98 F. Supp. 2d at 670. At the hearing, counsel averred the children live in Montgomery County, which has a presumptive lodestar fee of twenty-five percent. See Montgomery County Court of Common Pleas Local Rule 2039(a)(1)(A)(7). Although counsel is asking for an upward deviation of fifteen percent from the lodestar to the proposed forty-percent fee, the petition offers no benchmark or comparative data to justify the significant increase. See Nice, 98 F. Supp. 2d at 671 (rejecting thirty-seven percent fee in favor of the usual lodestar of twenty-five percent because "counsel provided no information concerning the customary hourly rates in plaintiffs' counsel's relevant geographic area or the customary rates for similar work.").
The petition also lacks any information as to "the ability of the client to pay a reasonable fee for the services rendered." Nice, 98 F. Supp. 2d at 670. This information allows the court to determine whether a reduction in damages awarded to the minors is warranted in order to pay the higher counsel fee on the basis that the plaintiff has the ability to pay the higher amount without compromising the children's well-being. At the hearing, counsel stated that Ms. Carlile's ability to pay had been considered in determining the proposed counsel fee, but offered no further details. Suffice it to say, the petition states that Ms. Carlile will be able to draw from the children's allocation to provide for their most basic needs, further suggesting that the higher counsel fee may be disproportionately affecting the children's fund.
At the hearing, counsel indicated he was prepared to conduct a lodestar analysis. This Court directed him instead to submit supplemental briefing with relevant evidence and indicated that this matter would be referred to a magistrate judge for a report and recommendation on the reasonableness of counsel's proposed fee under a lodestar analysis. Counsel consented to the reference. Accordingly, this Court issues the following order: