Consumer Cause, Inc. v. Mrs. Gooch's Natural Food Markets, Inc.

Is an unnamed member of a putative class who successfully objects to class certification and approval of a proposed class-wide settlement agreement entitled to an award of attorney fees under either Code of Civil Procedure section 1021.5, which codifies the private attorney general doctrine articulated in Serrano v. Priest (1977) 20 Cal.3d 25 [ 141 Cal.Rptr. 315 , 569 P.2d 1303 ] (Serrano III), or general equitable principles? As to the first part of the question, because the objector is not the functional equivalent of a private attorney general pursuing an action to enforce an important public right, he or she is not entitled to fees under section 1021.5.

As to the second part, an objector who persuades the court not to approve a settlement may be entitled to attorney fees under the equitable common fund or substantial benefit doctrines, provided the objector subsequently demonstrates he or she has actually benefited the class (that is, the ultimate class recovery exceeded that which would have been achieved in the absence of the objector’s efforts). An objector who simply defeats class certification, however, even if he or she thereby confers some concrete benefit on…