And according to them, the value of the settlement is far greater than the $107 million identified by Selna because of fundamental changes it's bringing to Wells Fargo's Guaranteed Asset/Auto Protection program, which pays customers the gap between auto insurance coverage and the total cost of the car.

Previously, a customer with GAP coverage for a five-year loan could pay the loan in three years, but Wells Fargo would keep the full five-year GAP fee. Under a change implemented because of the lawsuit, that customer would be reimbursed for two years of GAP coverage no longer needed.

A plaintiff's expert estimated GAP refunds will total $417 million over the next four years, which attorneys noted is money Wells Fargo wouldn't be paying had it not been for the lawsuit.

"Wells Fargo will be essentially waiving its argument that it does not have the contractual obligation to issue the refund or that customers must provide a written request as a prerequisite for a refund, at least for a four-year period. Obtaining this business practice change was one of the primary goals of this lawsuit," according to a declaration from Frank. "While the change is not permanent under the terms of the settlement, class counsel hopes and believes that the four-year period will demonstrate to Wells Fargo that it should adopt this change on a permanent basis."

Wells Fargo is represented by McGuireWoods as well as a North Carolina-based team from Troutman Pepper Hamilton Sanders. McGuireWoods partners Alicia Baiardo and David Powell from San Francisco appeared at Monday's hearing in Santa Ana. They didn't oppose the fee award.

Filed by Frank Sims & Stolper in 2018, the proposed class action is not related to the massive scandal over secret fees for unwanted car insurance that engulfed Wells Fargo in 2017 and included a $390 million multidistrict litigation settlement in 2019, also litigated in the Central District. The case never reached the class certification stage, but according to filings, Wells Fargo estimated the potential membership at nearly 2.7 million customers.

In addition to the future GAP fee refunds, Wells Fargo has already paid $33.36 million in refunds to members of a subclass, according to Frank's declaration, with approximately 105,274 people receiving an average of $316.87. The additional $22 million or so in the $45 million settlement fund that remains after attorney fees will give subclass members an additional payment "of up to $5" and will pay other approved claims, Frank said.

Frank called the compensation plan "essentially a complete win" for the subclass members.

The fee award is based on a lodestar of approximately $10.8 million stemming from 17,711.6 hours of work and hourly rates ranging from $150 to $450 for paralegals and $900 to $1,000 for partners. It comes to $23.1 million because of a 2.13 multiplier to the lodestar, which Selna said was reasonable. He also approved $260,982.42 in litigation expenses.

However, Selna took issue with the plaintiff attorneys' request that the 15 named plaintiffs each receive $7,500, observing that the $112,500 total is more than 23 times the average recovery for statutory subclass members.

The judge said time declarations showed all but one spent 12 to 41 hours, bringing an hourly rate between $182 and $625 that he deemed unreasonable. He reduced the service payments to reflect an hourly rate of $125. One plaintiff had 94 hours, which would have meant an increase to $11,750, but Selna kept his payment at $7,500. The other payments range from $1,500 to $5,125.

According to court documents, the fees were suggested by someone Selna knows well: Retired U.S. District Judge Andrew J. Guilford, a Judicate West neutral who joined the case as a mediator last year. Guilford, whose chambers were next to Selna's, said in a declaration he recommended the fee awards based on evidence and arguments from both sides. He's experienced with Wells Fargo, having presided over the auto insurance MDL that settled in 2019 for $390 million.