The federal judge overseeing much of the Vioxx litigation capped fees for plaintiffs’ lawyers at a relatively low 32 per cent of the $4.85 billion settlement in order to ensure fees are reasonable, The Associated Press reports.

US District Judge Elden Fallon decided that, while the limit is below the usual 33.3 per cent to 40 per cent lawyers collect when they take cases on a contingency, the payment won’t result in “a paltry award” for the lawyers. “Limiting attorneys’ fees to 32 per cent of the net recovery means that the attorneys in this case will receive more than $1.55 billion,” Fallon wrote in a 21-page order.

The judge gave several reasons for the limit, noting the global settlement reached last November streamlined the work of the participating attorneys. He wrote that he had an increased responsibility to keep fees reasonable because most of the claimants are elderly and frail after having “suffered life-threatening injuries” - or they are survivors of people who died of a heart attack or stroke. And so they may not have been able to negotiate the most favourable contracts with lawyers, the AP writes.

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Fallon also ruled that hundreds of attorneys representing about 50,000 Vioxx claimants participating in the settlement can recover reasonable costs. Altogether, 871 law firms are involved in the litigation, which began about the time Merck pulled the painkiller from the market in September 2004 after its own research showed it doubled risk of heart attack and stroke, the AP continues.

A much smaller group of law firms that pulled together thousands of documents under a pretrial discovery process that Fallon co-ordinated will receive additional fees above the 32 per cent. But the judge stressed that those extra amounts, still to be determined, will come from the other attorneys - not from the claimants.

The first partial cheques from the settlement fund are to be sent beginning tomorrow by the firm administering the claims. Those amounts, roughly 40 per cent of expected final settlements for claimants, will go into escrow accounts temporarily. Claimants will get their portion after deduction of lawyer’s fees and any claims by insurers seeking reimbursement for medical care they covered for Vioxx users. The first payments are only for heart attack cases; payments for stroke cases are set to begin in February.

Source: The Associated Press