Robidoux

This case calls upon us to determine the proper scope of review for a district court considering whether a proposed settlement of housing discrimination claims involving minor plaintiffs is fair and reasonable. Plaintiffs-Appellants — including minors and their guardians ad litem — appeal the district court’s denial, in part, of their motion to approve a proposed settlement of Plaintiffs’ housing discrimination claims against their former landlords, Wayne and Eileen Wacker (“Defendants”). The district court, exercising its special duty to protect the interests of litigants who are minors, rejected the settlement, as proposed, because the district court found the designation of 56% of the total settlement value to Plaintiffs’ counsel “excessive” and unreasonable. Robidoux v. Wacker Family Trust, 2009 WL 1531785 , at *5-6 (E.D.Cal. May 29, 2009). The district court then reduced Plaintiffs’ counsel’s award from $135,000.00 to $77,166.42 in fees and $8,500.73 in costs and approved the modified settlement. Id. at *6.

We reverse. Although the district court has a special duty to safeguard the interests of minor plaintiffs, that duty requires only that the district court…