Artem Gelis v. BMW of North America LLC ( 2022 )


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  • PRECEDENTIAL
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    No. 21-2093
    ARTEM V. GELIS; BHAWAR PATEL; ROBERT
    MCDONALD; JAMES V. OLSON; GREGORY HEYMAN;
    SUSAN HEYMAN; DEBRA P. WARD; DARRIAN
    STOVALL; ALEX MARTINEZ; AMANDA GOREY;
    CHRIS WILLIAMS; ASHOK PATEL; KENNETH
    GAGNON; MICHAEL CERNY; MARIA MEZA; ANDRE
    MALSKE; NICOLE GUY; DAVID RICHARDSON;
    STACEY TURNER; ERIC T. ZINN, individually and on
    behalf of all others similarly situated
    V.
    BMW OF NORTH AMERICA, LLC,
    Appellant
    Appeal from the United States District Court
    for the District of New Jersey
    (D.C. Civil Action No. 2-17-cv-07386)
    Magistrate Judge: Cathy L. Waldor
    Argued on June 7, 2022
    Before: AMBRO, RENDELL, and FUENTES, Circuit
    Judges
    (Opinion Filed: September 9, 2022)
    Christopher J. Dalton (Argued)
    550 Broad Street, Suite 810
    Newark, NJ 07102
    Jacqueline M. Weyand
    Buchanan Ingersoll & Rooney
    640 5th Avenue, 9th Floor
    New York, NY 10019
    Counsel for Appellant
    Jay I. Brody
    Gary S. Graifman (Argued)
    Kantrowitz Goldhamer & Graifman
    135 Chestnut Ridge Road, Suite 200
    Montvale, NJ 07645
    Randee Matloff
    Bruce H. Nagel (Argued)
    Nagle Rice
    103 Eisenhower Parkway
    Roseland, NJ 07068
    Thomas P. Sobran
    7 Evergreen Lane
    Hingham, MA 02043
    Counsel for Appellees
    OPINION
    AMBRO, Circuit Judge
    After the dust settles in a class action lawsuit, lawyers
    often remain to squabble over class counsel fees. Trying to
    avoid that fate, the parties here made an agreement: Appellant
    BMW of North America, LLC would not object to an award
    up to $1,500,000, and class counsel would not request an award
    above $3,700,000. BMW now appeals the District Court’s
    approval of a fee award at the upper limit of that range. It
    argues (1) that the Court’s calculation of the “lodestar”
    (essentially a multiplication of the hours counsel reasonably
    bill on a case by a reasonable hourly rate) was based on an
    insufficient record, and (2) that the Court erred in applying a
    lodestar multiplier to the fee award. We agree with BMW that
    the lodestar was based on an insufficient record and so vacate
    the District Court’s judgment and remand for further
    proceedings.
    I. Background
    This appeal stems from the settlement of a consumer
    class action suit filed in 2017 against BMW and its German
    parent,’ claiming they knowingly manufactured and sold
    vehicles equipped with defective N20 and N26 engines. After
    the District Court granted in part and denied in part BMW’s
    ' The parties later stipulated to the dismissal of BMW’s parent,
    Bayerische Motoren Werke Aktiengesellschaft, as a defendant.
    motion to dismiss, the named plaintiffs filed a Second
    Consolidated Amended Complaint bringing 20 causes of
    action under federal and state law, including an alleged breach
    of warranty under the Magnuson-Moss Warranty Act, 
    15 U.S.C. § 2301
     et seq. (a federal fee-shifting statute), breach of
    the implied warranty of merchantability, violation of various
    state consumer fraud and deceptive trade practice statutes, and
    unjust enrichment.
    The parties subsequently engaged a mediator and
    reached a settlement to reimburse class members for expenses
    incutred and provide them extended warranties. Because they
    did not know how many consumers would be eligible or make
    claims for certain benefits, the total value of the settlement was
    unknown. The District Court nonetheless concluded it was
    worth at least $27 million. As part of the settlement, the parties
    “agree[d] to submit the issue of attorneys’ fees” to a Magistrate
    Judge “for final evaluation and decision of the exact amount of
    ... fees... that should reasonably be awarded in this case.”
    While the Court would have the final say, the parties decided
    to resolve the fee issue with a “high-low” provision, stipulating
    that
    Settlement Class Counsel may apply to the Court
    for an award of attorneys’ fees ... and [BMW]
    may object to or oppose that application,
    although [BMW] will not object to Settlement
    Class Counsel’s application for an award of
    attorneys’ fees [of] . . . up to $1,500,000 in the
    ageregate. While not agreeing to the total
    amount of such an award, the Parties have agreed
    that Settlement Class Counsel may apply for an
    award of attorneys’ fees
    $3,700,000 in the aggregate.
    
    Id.
    not to exceed
    Class counsel sought $3.7 million in attorneys’ fees, the
    maximum allowable under the high-low provision, submitting
    to the Magistrate Judge three charts (one for each plaintiffs’
    firm) detailing at a summary level the time devoted to various
    categories of legal work, aggregated across the entire three-
    year litigation period.
    GELIS, ET AL. V. BMW OF NORTH AMERICA, LIC
    Case No. 17-cv-07356
    TIME & LODESTAR CHART (By Category)
    FIRM NAME: KANTROWITZ GOLDHAMER & GRAIFMAN, P.C.
    PERIOD: Inception to October 30, 2020
    Name/Position 1 3 4 5 6 7 8 9 10 ll 12 Hows Howly Lodestar
    Rate
    36.6 WI} 36) 14) SLl 28 20 $79 364 9.2 $6.0 376.10 $895 $336,609.50
    Graifman, Gary! P
    Provost! Michelle’ 5} 18 27.7 49 ol 23 47.30 $235 $10,642.50
    21 21 $225 $472.50
    Wallis, Kassidi! PL
    Dowd, Margaret! 1s] 10 o4 69 98 $225 $2,205.00
    PL
    Chakan, Lisa’ PL os] 0 16 $225 $360.00
    Brody, Jay! A 295 270) 17] 349 12 94.30 $625 $58,937.50
    Rothstein, 07 07 $500 $350.00
    Brandon! A
    Baron, Danielle! 04 o4 $200 $80.00
    Cherie
    $315.00
    Cornfield PL
    Haque, Sarah / OC .! $200.00
    Liz Moccia! PL
    $410,172.00
    CaTEConES
    1 Pre-Litigation Investigation and Fact Analysis
    2. Draftmg Complaints (Onginal, First, Amended Second Amended) 8. Negotiations and Settlement Process
    33 ‘Case Development and Case Administration 9. Settlement Documentation, Motions & Bmefing (2.¢., Prelim & Fimal
    Approval
    4. Post Filing Investigation and Communications with Class Members 10. Discovery
    5: Motion Practice, Drafting Memoranda and Lezal Research 11. Class Claims Administration Issues and Communications with Class
    6. Court Heanngs and Appearances Members/ Witnesses re Settlement
    7. Communications with Consultants/Experts 12. Final Approval Process, Final Approval Motion and Objection Replies, Communications with Class Members Through
    Conclusion
    (NOTE: curently estimated).
    Position Key: P=P , SA=Sentor Associate, A=A inte, PL=Paralegal
    
    Id. at 218-19
    .
    ARTEM V. GELIS, et al. v. BMW NORTH AMERICA, LLC
    Civil Action No. 17-cv-073386-WHW-CLW
    THOMAS P. SOBRAN, P.C. TIME / LODESTAR CHART
    PERIOD: Inception to October 31, 2020
    Name/Position 1 2 3 4 5 6 7 8 9 IE | eens | en a ee | er ecear
    Hours | Rate
    a : 60.4| 115.6] 118.8 | 158] 70.8] 15 ]174] 801] 384] 1405] 24 | 86 | ss9.9 | $750.00 | $667,425.00
    CATEGORIES
    1. Pre-Litigation Investigation 7. Communications with Consultants / Experts
    2. Drafting Complaints (original / amended) 8. Negotiation / Settlement Process
    3. Case Development / Administration 9. Settlement Documentation. Motions / Briefing (preliminary / final approval)
    4. Post Filing Investigation / Communications with Class Members 10. Discovery Activities
    5. Motion Practice / Memoranda Drafting / Legal Research 11. Class Claims Administration Issues / Communications with Class Members
    6. Court Hearings / Appearances 12. Future Anticipated Work Hours including Final Approval Process, Final
    Approval Motion and Objection Replies, Communications with Class
    Members through Conclusion (NOTE: currently estimated).
    
    Id. at 241
    .
    GELIS, ET AL. V. BMW OF NORTH AMERICA, LLC
    Case No, 17-cv-07386
    TIME & LODESTAR CHART (By Category)
    FIRM NAME: NAGEL RICE, LLP
    PERIOD: Inception to October 30, 2020
    Name/Position 2 3 4 5 6 7 8 9 10 ll 12 Hours Hourly Lodestar
    Rate
    24.8 95 4 3.8 27 0 0 0 0 5 0 0 417 $800/hr $33,360.00
    Robert H. Soloman,
    Esq. (P)
    42 87 128 54 13.2 45 0 276 8 24.1 0 15 116.3 $900/hr $104,670.00
    Bruce H. Nagel, Esq. (P)
    33 51.6 38.6 44.7 81.1 13.3 3 519 S19 170.1 9 2 582.4 $800/hr $465,920.00
    Randee M. Matloff,
    Esq. (P)
    Greg Kohn, Esq. (P) 0 0 3 0 0 0 0 0 0 0 0 0 03 $650/hr $195
    Zackary Goldberg, Esq. 0 0 0 2 15.5 0 0 0 0 0 0 0 17.5 $500/nr $8,750.00
    (a)
    TOTAL 32.3 69.8 52.1 559} 112.5 17.8 3 79.5 52.7 194.7 9 87 758.2 $612,895.00
    CATEGORIES
    1. Pre-Litigation Investigation and Fact Analysis 7, Communications with Consultants/Experts
    2 Drafting Complaints (Original, First, Amended Second Amended) 8. — Negotiations and Settlement Process
    3. Case Development and Case Administration 9. Settlement Documentation, Motions & Briefing (¢.g., Prelim & Final Approval
    4, Post Filing Investigation and Communications with Class Members 10. Discovery
    5. Motion Practice, Drafting Memoranda and Legal Research 11. Class Claims Administration Issues and Communications with Class
    6. Court Hearings and Appearances Members/ Witnesses re Settlement
    12. Final Approval Process, Final Approval Motion & Objection Replies, Communications with
    Class Members through Conclusion (NOTE: Currently Estimated)
    Position Key: P=Partner, SA=Senior Associate, A=Associate, PL=Paralegal
    
    Id. at 254
    . In addition, class counsel filed declarations that
    added more detail about the work completed while still not
    specifying the time spent on particular tasks, who did those
    tasks, or the dates they were performed, and declarations that
    described the experience of each lawyer who billed for the
    case. BMW objected to the maximum fee request. It argued,
    among other things, that (1) class counsel did not provide
    enough documentation to support the requested lodestar award,
    and (2) a lodestar multiplier (a factor by which a lodestar award
    is enhanced) was unwarranted here.
    The Magistrate Judge held a telephonic hearing. After
    listening to the parties’ arguments, the Court ruled that the
    summary charts were “more than sufficient” and provided “a
    good indicator of the time spent.” /d. at 436. Applying the
    lodestar approach, it adopted class counsel’s requested lodestar
    amount of $1,934,000. It then applied class counsel’s
    requested multiplier of 1.9 to reach a total fee award of $3.7
    million—the full amount class counsel sought. BMW now
    appeals.
    II. Standard of Review”
    Though we look anew (or de novo) at the legal standards
    used by the Court to calculate a fee award, “so long as it
    employs correct standards and procedures and makes findings
    of fact [that are] not clearly erroneous,” a district court has
    discretion to decide the amount of an award. Jn re Rite Aid
    Corp. Sec. Litig., 
    396 F.3d 294
    , 299 (3d Cir. 2005) (quoting
    Pub. Interest Research Grp. of N.J., Inc. v. Windall, 
    51 F.3d 1179
    , 1184 (3d Cir. 1995)). We also require that district courts
    “clearly set forth their reasoning for fee awards so that we will
    have a sufficient basis to review for abuse of discretion.” J/d.
    at 301.
    III. Discussion
    A. Waiver of the right to appeal the District Court’s fee
    determination
    Before addressing the merits of BMW’s arguments, we
    address a threshold issue: whether BMW waived its right to
    appeal the District Court’s attorneys’ fees ruling through (1) its
    purported judicial admissions, or (2) by agreeing to submit the
    issue of attorneys’ fees to the District Court “for final
    evaluation and decision,” Appx. at 199. We conclude no.
    * The District Court had jurisdiction under the diversity
    provision of the Class Action Fairness Act of 2005, 
    28 U.S.C. § 1332
    (d). We have jurisdiction under 
    28 U.S.C. § 1291
    .
    As to the former, class counsel contends the “doctrine
    of ‘judicial admissions’” bars BMW’s appeal here. Appellee
    Br. 24n.18. They point to an exchange between the Court and
    Christopher Dalton (BMW’s counsel) that occurred
    immediately after it granted class counsel’s motion for
    attorneys’ fees. The Court asked Mr. Dalton if there was
    “anything you need—or I need to put on the record for your
    purposes.” Appx. at 437. Mr. Dalton replied: “Your Honor
    has already gone through her bases and rationale for making
    this determination. We put it in the hands of the Court, and
    you’ve made your decision, Judge.” Jd.
    Case law requires that judicial admissions be
    “unequivocal” or “deliberate, clear, and unambiguous.” /n re
    Motors Liquidation Co., 
    957 F.3d 357
    , 360 (2d Cir. 2020) (per
    curiam) (collecting cases). As Mr. Dalton’s statements can be
    plausibly construed as merely acknowledging the adverse
    result of the hearing, they do not meet this standard.
    Alternatively, class counsel argues BMW waived its
    right to appeal by agreeing “to submit the issue of attorneys’
    fees” to the Magistrate Judge “for final evaluation and
    decision” of the fee amount “within the $1,500,000 to
    $3,700,000 range agreed upon by the Parties.” Appx. at 199
    (emphasis added). But the plain language of this provision
    does not explicitly waive either party’s right to appeal. Rather,
    it provides only that the District Court would decide the issue
    after briefing and argument,? plus it is silent as to appellate
    rights.
    3 Class counsel also points to non-published decisions from our
    Court dealing with high-low fee provisions—Vargo v.
    Our inquiry does not end here, however. We must also
    consider whether BMW waived its right to appeal by not
    explicitly reserving that right in the agreement. To this, /n re
    Odyssey Contracting Corp., 
    944 F.3d 483
     (3d Cir. 2019), is
    instructive. There we considered whether Odyssey waived its
    right to appeal a bankruptcy court’s determination of a
    payment dispute in an adversary proceeding. It had signed a
    stipulation stating that if the Court made a certain
    determination, “all of the Parties’ pending claims will be
    withdrawn and disposed of in their entirety with prejudice,”
    and the proceeding “shall be deemed to be finally concluded in
    all respects.” Jd. at 487-88. The stipulation was silent on the
    specific right to appeal. /d. at 488. After the Bankruptcy Court
    made the relevant determination, Odyssey appealed the
    dismissal of its claims to the District Court and, eventually, our
    Court. /d. at 486. We held Odyssey had waived its right to
    appeal because “the party seeking to appeal must make its
    intent to do so clear at the time of the stipulation.” Jd. at 489.
    In that ruling we distinguished the stipulation in
    Odyssey from class action settlement cases in which other
    Mangus, 94 F. App’x 941 (3d Cir. 2004), and Bryan v. Erie
    Cnty. Off of Children & Youth, 637 F. App’x 693 (3d Cir.
    2016)—and a New Jersey Supreme Court decision discussing
    high-low agreements in the context of jury trials—Serico vy.
    Rothberg, 
    189 A.3d 343
    , 349-51 (N.J. 2018). But because the
    attorneys’ fees provision at issue here does not include an
    unambiguous, explicit waiver of appeal, the Third Circuit cases
    fall off point. Serico is also out of place, as it merely involved
    enforcing the upper bound of a high-low agreement according
    to the agreement’s plain language. /d.
    10
    circuits have required express waiver of the right to appeal
    when the parties have stipulated that a court will decide a
    certain issue. /d. (citing In re Deepwater Horizon, 
    785 F.3d 986
    , 997 (Sth Cir. 2015); Montez v. Hickenlooper, 
    640 F.3d 1126
    , 1132 (10th Cir. 2011)). We explained that “[t]he interest
    at stake in those cases was different from that at issue” in
    Odyssey because “[iJn class actions, settlement agreements
    cannot be approved unless the court determines that they are
    fundamentally fair, reasonable, and adequate, the purpose of
    which is to protect unnamed members of the class from unjust
    or unfair settlements.” /d. at 489-90 (internal quotation marks
    omitted). “[T]hat interest d[id] not apply in [Odyssey], which
    involve[d] a dispute between sophisticated business entities.”
    Td. at 490.
    As our case presents a situation closer to the class action
    cases distinguished in Odyssey, we hold that stipulations
    regarding attorneys’ fees in class actions must contain an
    express waiver of appeal. This tracks our case law in this area,
    which recognizes that the “unique relationship among
    plaintiffs’ counsel, plaintiffs, and defendants in class actions
    imposes a special responsibility upon appellate courts to hear
    challenges to fee awards.” Jn re Cendant Corp. PRIDES Litig.,
    
    243 F.3d 722
    , 728 (3d Cir. 2001). Because BMW did not
    expressly waive its right to appeal the District Court’s fee
    determination, it preserved that right.
    B. Sufficiency of the record underlying the District
    Court’s lodestar calculation
    With waiver out of the way, we turn to the merits.
    BMW argues the District Court granted class counsel’s fee
    request on an insufficient record. We agree.
    11
    For context, there are two main ways to calculate
    attorneys’ fees: the percentage-of-recovery method and the
    lodestar method. See Cendant, 
    243 F.3d at 732
    . The former is
    as simple as it’s named. “Lodestar,” though, is a term-of-art
    used by courts to denote an award that is “calculated by
    multiplying the number of hours [the lawyer] reasonably
    worked on a client’s case by a reasonable hourly billing rate
    for such services based on the given geographical area, the
    nature of the services provided, and the experience of the
    attorney[].” Rite Aid, 
    396 F.3d at 305
    . These approaches are
    typically employed in different contexts. | While the
    “percentage-of-recovery method is generally favored in cases
    involving a common fund,” the lodestar method, pioneered by
    our Court in Lindy Brothers Builders, Inc. of Philadelphia v.
    American Radiator & Standard Sanitary Corp., 
    487 F.2d 161
    (3d Cir. 1973), “is more commonly applied in statutory fee-
    shifting cases....” Jn re Prudential Ins. Co. Am. Sales
    Practice Litig., 
    148 F.3d 283
    , 333 (3d Cir. 1998). The lodestar
    approach may also be used in cases, such as here, “where the
    nature of the recovery does not allow the determination of the
    settlement’s value necessary for application of the percentage-
    of-recovery method.” Jd.
    As such, was the District Court’s calculation of the
    lodestar award based on a sufficient record? Our case law
    requires that “[a]ny hours to be used in calculating attorneys’
    fees .. . be detailed with sufficient specificity.” Keenan vy. City
    of Philadelphia, 
    983 F.2d 459
    , 472 (1992). In other words, the
    + As BMW does not challenge the District Court’s choice to
    use the lodestar method, we do not question that aspect of its
    ruling.
    12
    fee application must “be specific enough to allow the district
    court to determine if the hours claimed are unreasonable for the
    work performed.” Rode v. Dellarciprete, 
    892 F.2d 1177
    , 1190
    (3d Cir. 1990) (internal quotation marks omitted). The petition
    should therefore “include ‘some fairly definite information as
    to the hours devoted to various general activities, e.g.[,] pretrial
    discovery, settlement negotiations, and the hours spent by
    various classes of attorneys, e.g., senior partners, junior
    partners, associates.’” Keenan, 983 F.2d at 473 (quoting Rode,
    
    892 F.2d at 1190
    ). “[I]t is not necessary,” however, “to know
    the exact number of minutes spent nor the precise activity to
    which each hour was devoted nor the specific attainments of
    each attorney.” Rode, 
    892 F.2d at 1190
     (internal quotation
    marks omitted).
    BMW argues the summary charts submitted by class
    counsel cannot justify the award because they “do not detail in
    any explicit manner how the total hours worked... were
    generated.” Appellant Br. at 14. In particular, it contends the
    charts “provided no dates to inform the District Court of when
    the task was performed; nor . . . information to show what any
    specific activity was, how much time was devoted to any
    specific activity, on any specific date, by which specific
    individual, for a particular charge.” /d. at 15 (citing Appx. at
    218-19, 241, 254) (emphases in original). As an initial
    observation, we note that the summary charts total only three
    pages but purport to summarize hours billed across a three-
    year period. And while the charts do provide some information
    about the hours devoted to litigation activities (such as
    “Discovery Activities,” “Pre-Litigation Investigation,”
    “Drafting Complaints (original/amended)”’), the hours billed
    by each attorney are aggregated across the entire three-year
    litigation period. Appx. at 218-19, 241, 254. That sort of
    13
    aggregation, without more detail, is an insufficient basis for an
    attorneys’ fee award.°? See Keenan, 983 F.2d at 473 (portion of
    fee petition consisting of summaries detailing “only monthly
    cumulative totals of [attorney’s] hours” was not “sufficiently
    specific”).© We simply cannot discern from the charts whether
    certain hours are duplicative (a determination that is
    particularly crucial here, given that three plaintiffs’ firms seek
    fees for performing the same categories of work) or whether
    the total hours billed were reasonable for the work performed.
    In a last-ditch attempt to salvage the award, class
    counsel asserts they “offer[ed] to provide the [District Court]
    with several hundred pages of contemporaneous billing
    records,” but it declined the offer. Appellees Br. at 30. While
    > Class counsel caution against restricting our review to the
    summary charts, pointing to, among other things, their
    declarations “describing discrete tasks engaged in by each
    firm.” Appellees Br. at 30. But the declarations do not
    associate the discrete tasks with particular time-keepers or the
    time spent on the tasks detailed therein. More fundamentally,
    there is no way to use those declarations with the summary
    charts (and other information provided) to discern whether the
    hours reported by class counsel were reasonable for the work
    performed.
    ° BMW also argues the summary charts “do not comply with
    the District of New Jersey’s requirements for fee applications,”
    as laid out in that Court’s local rules. See Appellant Br. at 30;
    D.N.J. L. Civ. R. 54.2. While we may overturn a district
    court’s ruling for failing to abide by its own local rules in some
    circumstances, see Advanced Fluid Systems, Inc. v. Huber, 
    958 F.3d 168
    , 181 (3d Cir. 2020), we need not reach this issue here,
    as we are overturning the fee award on an alternative ground.
    14
    not required, ““contemporaneously recorded time sheets are the
    preferred practice.” Keenan, 983 F.2d at 472 (alteration
    adopted) (quoting Webb vy. Cnty. Bd. of Educ., 
    471 U.S. 234
    ,
    238 n.6 (1985)). And that preference is especially strong here,
    where class counsel’s summary charts were so condensed,
    high-level, and lacking in specific detail that we would likely
    need the underlying billing records to parse them. So class
    counsel’s mere offer to provide the District Court more
    documentation does not cure the Court’s failure to take counsel
    up on that offer and review the complete records. As its
    lodestar award was thus based on an insufficient record, we
    vacate its order and remand for further proceedings.
    C. The propriety of applying a lodestar multiplier to
    the fee award
    BMW also argues the District Court improperly applied
    a lodestar multiplier to class counsel’s fee award. It cites
    Perdue v. Kenny A. ex rel. Winn, in which the Supreme Court
    held that “there is a ‘strong presumption’ that the lodestar
    figure is reasonable, but that presumption may be overcome in
    those rare circumstances in which the lodestar does not
    adequately take into account a factor that may properly be
    considered in determining a reasonable fee.” 
    559 U.S. 542
    ,
    554 (2010). Because Perdue concerned federal fee-shifting
    statutes, 
    id. at 547
    , the parties disagree about whether it applies
    here. Class counsel maintains Perdue does not govern, as our
    matter “is not a pure statutory fee shifting case because it
    encompasses common law counts including unjust enrichment,
    equitable relief claims, and breach of express and implied
    warranty counts which survived BMWJ’s] motion to dismiss.”
    Appellees Br. at 38. BMW, on the other hand, contends
    “multipliers are inappropriate where fees are based on a fee-
    15
    shifting statute, determined by a lodestar calculation, as they
    were here.” Reply Br. at 11.
    As we vacate and remand the District Court’s fee award
    because the lodestar calculation was based on an insufficient
    record, we decline to decide whether the District Court was
    bound by the strictures of Perdue in considering a fee
    enhancement. We do, however, note two things for the parties
    and the Court to consider on remand. First, we think the
    parties’ focus on the statutes under which named plaintiffs sued
    is misplaced, as the “Court awarded the attorney’s fees
    pursuant to a contract—the settlement agreement—not
    pursuant to a statute.” /n re Home Depot Inc., 
    931 F.3d 1065
    ,
    1082 (11th Cir. 2019); see also Brytus v. Spang & Co., 
    203 F.3d 238
    , 246 (3d Cir. 2000) (“When there has been a
    settlement, the basis for the statutory fee has been discharged,
    and it is only the fund that remains.”). Second, we urge the
    District Court on remand to provide additional reasoning for
    its decision whether to add a lodestar multiplier. In the fee
    hearing, the Court explained it would add a multiplier of 1.9
    because it “is well within approved multipliers in our
    jurisdiction,” and because the award “falls well within the
    appropriate Gunter factors.” Appx. at 437 (citing Gunter v.
    Ridgewood Energy Corp., 
    223 F.3d 190
     (3d Cir. 2000)). This
    is not enough reasoning to give us “a sufficient basis to review”
    its fee enhancement. Rite Aid, 
    396 F.3d at 301
    .
    * * *
    In their class action settlement the parties agreed to
    cabin class counsel’s attorneys’ fees request within a high-low
    range, subject to final determination by the District Court.
    Though it granted a fee award at the high end of that range, its
    calculation was not supported by the record before it. Because
    16
    we cannot tell whether the hours class counsel billed were
    reasonable for the work performed, we vacate the Court’s order
    and remand for further proceedings.
    17