Common Fund Doctrine
The equitable principle allowing counsel who create a fund to be paid from it.
The basis on which class counsel are compensated out of a settlement fund rather than by their clients, and the conceptual ancestor of common benefit assessments in MDL practice. Fee awards under the doctrine are set by the court, typically as a percentage of the fund with a lodestar cross-check.
See also
- Common Benefit FundAn assessment on recoveries that compensates leadership counsel for work benefiting all claimants.
- Contingency FeeCounsel's fee taken as a percentage of recovery, payable only on success.
- Class ActionA representative action in which a named plaintiff litigates on behalf of a defined class.
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