NVLSP v. US

Federal CircuitMar 20, 2026

Split Score

SplitScore: 65/100

Case Summary

Disposition

Affirmed

Objector Eric Alan Isaacson challenged the district court’s approval of a $125 million PACER-fee class-action settlement, arguing lack of Little Tucker Act jurisdiction, unfair allocation of settlement funds, excessive attorneys’ fees, and illegality of incentive awards. The 13th Circuit rejected each argument, held that each PACER transaction constituted a separate claim under the Little Tucker Act, found the settlement and fee awards reasonable, joined the majority of circuits in allowing incentive awards, and affirmed the judgment.

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Circuit Split Identified

Legal Issue

Whether federal courts may approve incentive (service) awards to class representatives in Rule 23 class-action settlements after Trustees v. Greenough and Central R.R. & Banking Co. v. Pettus.

Circuit Positions

Circuit 1Circuit 2Circuit 3Circuit 4Circuit 5Circuit 6Circuit 7Circuit 8Circuit 9Circuit 10Federal Circuit(this circuit)

Incentive awards to class representatives are permissible so long as they are reasonable and do not create conflicts with the class.

Circuit 11

Incentive awards are per se unlawful under Greenough and Pettus.

Conflict Summary

The Eleventh Circuit (Johnson v. NPAS Solutions, 2020) holds that incentive awards are per se unlawful under Greenough and Pettus, while every other circuit to address the question—including the present 13th Circuit—permits reasonable incentive awards, treating them as distinct from the salary-like payments condemned in those 19th-century equity cases.

Parties & Counsel

Parties

Appellant:Eric Alan Isaacson
Appellee:National Veterans Legal Services Program, National Consumer Law Center, Alliance for Justice, and United States

Legal Counsel

Appellant:Eric Alan Isaacson (pro se)
Appellee:Deepak Gupta, Gupta Wessler LLP; Jonathan Taylor; William H. Narwold & Meghan Oliver, Motley Rice LLC; Alexis M. Daniel, Kirk Thomas Manhardt, Yaakov Roth, Marcus S. Sacks, U.S. Department of Justice