3.7 Other Methodologies Used for Determining Attorney Fees

• Library: Attorney Fees and Sanctions - Virginia and Federal Courts (Virginia CLE) (2016 Ed.)

3.7 OTHER METHODOLOGIES USED FOR DETERMINING ATTORNEY FEES

3.701 In General. In In re Microstrategy Inc.,⁴³¹ Judge Ellis noted that while the lodestar and percentage-of-recovery methodologies "dominate the fee award field, other approaches have been suggested and used."

3.702 Market Approach. The Seventh Circuit has urged the use of a market-mimicking approach, suggesting that, before litigation begins, a trial judge should 'design a fee structure that emulates the incentives a private client would put in place." ⁴³²

3.703 Auction Method. Several district courts have used a so-called "auction" method, in which candidates for lead counsel submit proposals detailing their proposed fee structures, experience, and other...