Facts

Following the settlement of all claims in the litigation, Layn Phillips arbitrated a $28 million fee dispute among several plaintiffs' attorneys who had been involved in a class action against Wal-Mart Stores, Inc. Phillips allocated $6.1 million of the $28 million to Carolyn Burton and Robert Mills of the Mills Law Firm, who, along with Robert Bonsignore of Bonsignore and Brewer, are co-lead counsel in the case. Wal-Mart has taken no position as to the claimed fees or how they should be allocated.

PLAINTIFFS' CONTENTIONS:
Burton and Mills sought to set aside Phillips' allocation order, alleging bias, fraud and corruption. Burton and Mills contend that Phillips failed to disclose a prior business relationship with co-lead counsel Bonsignore, that Bonsignore was allocated twice as much money as Burton and Mills, and that Phillips used his leverage as fee arbitrator to force a settlement in a separate mediation.

Result

The court found there was no evidence supporting the allegations of misconduct, bias, fraud, or corruption, and refused to set aside Phillips' fee allocation.