PRACTITIONER BLOG

Read our analyses of developments in Impact Litigation and stay current on class action law

The Seventh Circuit Breaks with Eleventh, Allows Service Awards for Named Plaintiffs
Class Actions, Service Awards John Henry Frankel Class Actions, Service Awards John Henry Frankel

The Seventh Circuit Breaks with Eleventh, Allows Service Awards for Named Plaintiffs

In 2020, a panel of the Eleventh Circuit Court of Appeals stunned the class action bar when it ruled in Johnson v. NPAS Solutions., LLC, 975 F.3d 1244 (11th Cir. 2020), that service awards for class representatives are categorically unlawful. Service awards are financial payments to class representatives that have long been used to acknowledge their service to the class. In April of 2024, the Seventh Circuit split with the Eleventh Circuit when it allowed service awards.

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Impact Fund & Amici to Eleventh Circuit: Eliminating Service Awards Endangers Class Actions
Class Actions, Service Awards Teddy Basham-Witherington Class Actions, Service Awards Teddy Basham-Witherington

Impact Fund & Amici to Eleventh Circuit: Eliminating Service Awards Endangers Class Actions

A recent decision by the Eleventh Circuit Court of Appeals stunned the class action and civil rights community. In Johnson v. NPAS Solutions., LLC, 975 F.3d 1244, a 2-1 majority ruled that service awards for class representatives in class actions are categorically unlawful.On October 29, the Impact Fund filed an amicus brief calling on the full Eleventh Circuit to review the decision en banc. Our amicus brief on behalf of civil rights groups argues that service payments and incentive awards appropriately compensate plaintiffs for the considerable responsibility they undertake in class action cases and on behalf of fellow class members.

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