SENATE BILL 528

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Rod Adair

AN ACT

RELATING TO COURTS; ENACTING THE CLASS ACTION LAWSUIT REFORM ACT; LIMITING ATTORNEY FEES IN CLASS ACTION LAWSUITS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. SHORT TITLE.--This act may be cited as the "Class Action Lawsuit Reform Act".

     SECTION 2. ATTORNEY FEES IN CLASS ACTIONS--COUPON SETTLEMENTS.--

          A. If a proposed settlement in a class action provides for a recovery of coupons, checks or other consideration to a class member, the portion of an attorney fee award to class counsel that is attributable to the award of the coupons, checks or other consideration shall be based on the value to class members of the coupons that are redeemed, checks that are negotiated or other consideration that is actually received. That portion of an attorney fee award to class counsel that is attributable to the award of the coupons, checks or other consideration shall not exceed one thousand times the average value of the coupons, checks or other consideration awarded to class members.

          B. If a proposed settlement in a class action provides for a recovery of coupons, checks or other consideration to a class member and the attorney fee award to class counsel is not attributable to a portion of the award of the coupons, checks or other consideration, the attorney fee award to class counsel shall be based on the amount of time reasonably expended working on the action but shall not exceed one thousand times the average value of the coupons, checks or other consideration awarded to class members.

          C. If a class action has resulted in an award for equitable relief, including injunctive relief, in addition to attorney fees recoverable pursuant to Subsections A and B of this section, the court may award attorney fees to class counsel based upon the amount of time reasonably expended working on the action in the pursuit of equitable relief.

     SECTION 3. APPLICABILITY.--The provisions of this act shall apply to class action lawsuits filed on or after the effective date of this act.

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