A group of Chicago lawyers want $427,000 in fees for pressing a lawsuit against Chicago-based Hyatt Hotels, about 40% of a settlement fund established to end litigation against the hotel chain for allegedly improperly requiring workers to scan their fingerprints when punching the clock at work, allegedly breaching Illinois' biometric privacy law.
Robin Rapai sued Hyatt Hotels in October 2017 in Cook County Circuit Court, alleging Hyatt breached the Illinois Biometric Information Privacy Act (BIPA). Specifically, Rapai alleged Hyatt made workers scan their fingerprints when clocking in and out of work shifts, but without disclosing to workers, as required by law, how their biometric data would be collected, used and ultimately destroyed. Hyatt also allegedly failed to obtain workers' consent, according to Rapai.
Rapai is represented by attorneys Kasif Khowaja, of the Khowaja Law Firm; Myles McGuire, Evan M. Meyers and Timothy P. Kingsbury, of McGuire Law P.C.; and James X. Bormes, of the Law Office of James X. Bormes, all of Chicago.
Biometric technology privacy law has led to a bounty of class action suits for a number of law firms, including McGuire Law. The Illinois biometric law was ostensbily meant to shield state residents from identity theft. However, certain lawyers have used the law to lodge suits against employers, claiming employers failed to give workers the required notifications.
A preliminary settlement agreement in the Hyatt case calls for a fund of $1.1 million to be set up. From this amount, Rapai's attorneys would collect $427,000 and each of the 1,187 eligible Hyatt workers would receive $1,500. To be eligible, workers had to have used a fingerprint scan at one of five Chicago-area Hyatt hotels between Oct. 30, 2012 and various dates in 2018. Claims had to be submitted by Dec. 24.
Rapai would net $12,500, on top of the $1,500, for spearheading the suit. The slice to be taken by the lawyers is 40 percent of the settlement. They are also to be reimbursed $4,300 to cover filing and mediation fees, copying costs and other expenses incurred in administering the case. The mediator was retired Cook County Judge Lynn M. Egan, of Chicago-based Webster Egan Mediations.
The lawyers contend the $427,000 in fees is "eminently reasonable," given the effort they have expended, and is the going rate for similar class actions in Cook County.
In arguing for their fee, Rapai's attorneys switched hats and made a case for Hyatt, saying Hyatt had three viable defenses to the suit.
Rapai's attorneys said Hyatt would likely contend Rapai's claims were preempted by the Illinois Workers' Compensation Act, and Rapai waived BIPA's safeguards by providing her biometric data. Further, Rapai's attorneys maintained Hyatt would argue a "significant number" of the workers' claims would be barred by the five-year statute of limitations.
In light of the defenses Hyatt could raise, Rapai's attorneys asserted, "The Settlement’s estimated provision of approximately $1,500 to each valid claimant now, as opposed to years from now, or perhaps never, represents a truly extraordinary result."
Circuit Judge Anna Demacopoulos is presiding over the case. She is to decide at a hearing Jan. 20 whether to approve the final settlement terms and fee request.
Hyatt is not admitting any wrongdoing, but as part of the settlement is agreeing to abide by the BIPA.
Hyatt is defended by attorneys Lisa Handler Ackerman and Jacob R. Graham, of Wilson Elser Moskowitz Edelman & Dicker, of Chicago.