When a class of plaintiffs wins their class action lawsuit against their defendant, or the case settles outside of court, it is common practice for the named plaintiffs to receive at least a few thousand dollars each, in addition to their share of the award or settlement amount. This extra share is known as an incentive award and is meant to encourage potential plaintiffs to file class action lawsuits against large defendants, which tend to be large corporations that have much more leverage than the plaintiffs, both in business and in the courts.
But a Florida judge recently refused the incentive awards for the six named plaintiffs who filed a class action overtime lawsuit against their former employer, Hartford Fire Insurance Co. Despite the fact that he approved the rest of the $3.7 million to settle the legal dispute, U.S. District Judge Roy B. Dalton said the plaintiffs had not submitted sufficient evidence to show that the named plaintiffs had significantly contributed to the case or taken any serious risks. Continue reading