Appeals Court Upholds $12 Million Disgorgement of Lawyer’s Fees

A California lawyer is required to disgorge $12 million in attorneys’ fees awarded in a state court case, after the U.S. Court of Appeals for the Ninth Circuit rejected challenges to the trial court’s jurisdiction, discovery rulings, and decision to certify a class.

The Ninth Circuit also rejected Mark Richard Obenstine’s argument that the disgorgement order was an abuse of discretion because not all of the class members signed retainers with him and only half of those that did were eligible for relief under California law.

Under California law, the issue is the wrongdoer’s enrichment, not the victim’s loss, the ...