Krause v. Rhodes

640 F.2d 214 (6th Cir. 1981)

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Nature of the Case

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Facts

Damages were sought by nine persons injured and the personal representatives of four persons who were killed at Kent State University on May 4, 1970. The defendants were alleged to have 'intentionally, recklessly, willfully and wantonly' caused an unnecessary deployment of the Ohio National Guard on the Kent State campus and, in the same manner, ordered the Guard members to perform allegedly illegal actions which resulted in this historic tragedy. The complaints alleged causes of action under the Civil Rights Act of 1871, now 42 U.S.C. § 1983 (1976). Saying that the case itself was a difficult case is a massive lie. It was far worse. After the first trial, the jury returned a verdict for defendants of no cause for action. Ps and their counsel (including Steven Sindell) signed an agreement naming the American Civil Liberties Union (ACLU) as lead counsel 'for purposes of all appellate proceedings in this litigation.' Ps and their counsel (including Steven Sindell) signed an agreement naming the American Civil Liberties Union (ACLU) as lead counsel 'for purposes of all appellate proceedings in this litigation.' Sanford Jay Rosen headed a team of ACLU lawyers in prosecuting the successful appeal to this court, which reversed for a new trial. Rosen and his team also represented plaintiffs in the first four days of the second trial of this case and in the discussions, which led to the settlement. This case was settled by an agreement entered into by all parties and lawyers except Sindell. Ohio voluntarily offered to pay $675,000 in full settlement, provided that $600,000 of this sum be paid directly to Ps undiluted by legal fees or expenses. Judge Thomas entered a settlement and dismissal order providing for payment of $600,000 to plaintiffs, $50,000 as payment in full to the attorneys, and $25,000 to cover out-of-pocket expenses. Judge Thomas limited distribution of the $50,000 to contingent fee contract holders and apparently based the fund's allocation upon work performed prior to the first adverse jury verdict. The law firms associated with appellant Sindell received $ 33,740 of the $50,000 fund, while the ACLU and the lawyers associated therewith received nothing for their services. D appealed.