Fischel

Plaintiffs, who are independent insurance agents for Equitable Life Assurance Society of the United States (“Equitable”), initially brought this class action in California Superior Court challenging Equitable’s modification to the agents’ commission payment system and to certain agents’ health benefits plan. Equitable removed the case to federal court on the grounds that the health benefits claim was completely preempted by the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. §§ 1001-1461 , and that there was diversity jurisdiction. The district court denied Plaintiffs’ motion to remand the action to state court, concluding that there was federal question jurisdiction under ERISA. Soon thereafter, Equitable agreed to settle Plaintiffs’ claim regarding the commission payment system.

As part of the settlement, Equitable agreed to pay Plaintiffs approximately $20 million in commission payments. Having secured a settlement fund, or “common fund,” Plaintiffs’ counsel sought an award of attorney’s fees and costs. Although Plaintiffs’ counsel initially sought 25 percent of the fund and later 10 percent, they were awarded approximately 3 percent of the fund. In…