I think you are right about consulting a tax professional on this one. This is different than a contingency case where legal fees are not part of the settlement but they are an expense in obtaining a settlement. The suit is seeking to have the defendant deliver a no-cost benefit that they have refused to provide. If the Jury tells the defendant to deliver the no-cost item there is technically no compensation or damages awarded. Basically what the defendant would be delivering is the right to purchase services at a discount. Because it is the right to purchase services it is not possible to quantify a value. The court ordering the defendant to pay legal expenses is also not technically compensation it is reimbursement. If it is settled out of court there is also no compensation or damages. The only thing the defendant gains is the right to say they weren't order to deliver the benefit which might open up the potential for similar lawsuits to be filed. In think this a gray area which I need a firm answer on because we are not talking a small sum. I am not sure the attorneys can modify the filing that requests reimbursement to include compensation for tax liabilities. If granted the judge is making the decision not the Jury.
