Tea Party Litigation Funder Gets $1.75M in Fees Against IRS

A third-party funder who backed Tea Party groups in their discrimination suit against the IRS was awarded $1.75 million in fees, plus expenses by an Ohio federal court.

Judge Michael R. Barrett of the Southern District of Ohio said that the unopposed fee, which was 50 percent of the $3.5 million settlement fund, was reasonable.

Barrett reviewed six factors in concluding the award was reasonable:

1. The class got substantial benefits.
2. "[T]here is an important societal interest in rewarding attorneys and third party funders who engage in public interest litigation.”
3. The third-party funder’s reimbursement was contingent on a good outcome, just ...