Nov 18 (Reuters) - American Airlines ( AAL ) has reached
a tentative settlement with flight booking company Sabre
in the airline's fight to recover more than $139
million in legal fees after winning just $1 in damages at a 2022
trial.
In a filing on Saturday, American and Sabre told U.S.
District Judge Lorna Schofield in Manhattan that the companies
agreed in principle to resolve their fight over fees in the
13-year-old case.
The proposed terms were not disclosed in the court filing.
Sabre declined to comment on Monday, and American Airlines ( AAL ) did
not immediately respond to a request for comment.
Sabre was sued in 2011 by US Airways, which later merged
with Fort Worth, Texas-based American.
The lawsuit accused Sabre of harming competition in the
flight-booking market and charging excessive fees. A jury in
2022 found Sabre had acted unlawfully to stifle competition, but
also that US Airways' contract with Sabre did not constrain
trade as the airline alleged.
The jury awarded American $1 in damages, and Sabre, which
denied wrongdoing, did not appeal. American then asked the court
to order Sabre to cover its legal fees totaling $139 million.
Schofield ruled last year that American was entitled to seek
reasonable legal fees after its nominal win of $1. The judge
said the federal antitrust law at issue allows a prevailing
plaintiff to recover fees.
Sabre was due to respond this week to American's legal fee
bid. Sabre and American asked the judge to push the deadline to
December to allow the companies to finalize their deal.
The case is US Airways Inc v. Sabre Holdings Corp, U.S.
District Court for the Southern District of New York, No
1:11-cv-02725-LGS.
For plaintiff: Andrew Frackman of O'Melveny & Myers, and
Paul Yetter of Yetter Coleman
For defendant: Boris Bershteyn and Steven Sunshine of
Skadden, Arps, Slate, Meagher & Flom
Read more:
Legal Fee Tracker: American Airlines ( AAL ) presses $139 mln fee
bid after $1 verdict
After $1 American Airlines ( AAL ) antitrust win, O'Melveny wants
$139 million in legal fees