UNITED STATES DISTRICT COURT
FOR THE WESTERN
DISTRICT OF MICHIGAN
SOUTHERN DIVISION
___________________________
Plaintiff,
CHECK
ENFORCEMENT UNIT, INC., HON.
GORDON J. QUIST
Defendant.
___________________________________/
OPINION
Plaintiff, Sherri J. Gradisher ("Gradisher"), sued
Defendant, Check Enforcement Unit, Inc. ("CEU"), on behalf of herself
and a proposed class alleging that CEU violated the Fair Debt Collection
Practices Act ("FDCPA"), 15 U.S.C. §§ 1692-1692o, and its Michigan
counterpart, the Michigan Collection Practices Act, M.C.L. §§ 339.901-.920 and
M.C.L. §§ 445.251-.258. The Court has
previously ruled that CEU is a debt collector under the FDCPA and violated
several provisions of that act. The
Court has also entered judgment in favor of Gradisher in the amount of
$1,000.00. Now before the Court is
Gradisher's motion for an award of costs and attorney fees.
I. Background
Gradisher filed her class action complaint in this case on
June 2, 2000. Early in the case, CEU
raised the issue of whether it is a debt collector within the meaning of the
FDCPA. On February 28, 2001, after
receiving the parties' briefs on the issue, the Court held that CEU was a debt
collector and denied CEU's motion for summary judgment. On May 3, 2001, Gradisher filed a motion for
class certification. The Court issued
an Opinion and Order on August 21, 2001, granting the motion for class
certification and ordering Gradisher to submit a proposed notice form, method
of distribution, and class list to the Court within fourteen days. Following a series of disputes regarding
class membership, Gradisher's counsel mailed the notice to class members.
On January 10, 2002, Gradisher filed a motion for partial
summary judgment regarding CEU's violations of the FDCPA. In an Opinion and Order entered on April 5,
2002, the Court granted the motion in part, concluding that CEU had committed
multiple violations of the FDCPA.
Following a hearing on damages, the Court granted Gradisher's request to
decertify the class due to the de minimis net worth of CEU. The Court awarded Gradisher the maximum
statutory damages of $1,000.00 and entered judgment for Gradisher in that amount
on August 26, 2002.
Gradisher now seeks an award of costs and attorney fees
pursuant to 15 U.S.C. § 1692k(a)(3). In
particular, Gradisher requests an award of fees in the amount of $94,083.00,
consisting of $80,538.00 for services performed by attorney O. Randolf Bragg[1]
and his firm and $13,545.00 for services performed by attorney Louis R. Lint
and his firm. Gradisher also seeks
costs in the amount of $10,860.44.
Finally, Gradisher requests an award of $5,964.00 in fees and $38.28 in
costs incurred in connection with her
fee request.
II.
Analysis
Pursuant to 15 U.S.C. § 1692k(a)(3), a plaintiff in a
"successful action to enforce" the FDCPA is entitled to recover
"the costs of the action, together with a reasonable attorney's fee as
determined by the court." See
Wright v. Fin. Serv. of Norwalk, Inc., 22 F.3d 647, 651 (6th Cir.
1994). CEU does not dispute that
Gradisher is entitled to an award of fees and costs. It argues, however, that the amount of the fee request is unreasonable
because many of the hours incurred were unnecessary, excessive, or
duplicative. CEU also objects to
certain costs as unnecessary or lacking sufficient description.
A. Attorney Fees
The proper method of determining a reasonable attorney fee
under the FDCPA is the "lodestar method" utilized in determining reasonable
attorney fees in civil rights cases. Lee
v. Thomas & Thomas, 109 F.3d 302, 307 (6th Cir. 1997) (citing Hensley
v. Eckerhart, 461 U.S. 424, 103 S. Ct. 1933 (1983)). "'The primary concern in an attorney
fee case is that the fee awarded be reasonable,' that is, one that is
adequately compensatory to attract competent counsel yet which avoids producing
a windfall for lawyers." Adcock-Ladd
v. Sec'y of Treasury, 227 F.3d 343, 349 (6th Cir. 2000) (quoting Reed v.
Rhodes, 179 F.3d 453, 471 (6th Cir. 1999)). The starting point in the analysis is the "lodestar
figure," which is the product of the number of hours reasonably expended
on the litigation multiplied by a reasonable hourly rate. See Wayne v. Vill. of Sebring,
36 F.3d 517, 531 (6th Cir. 1994) (citing Hensley, 461 U.S. at 433, 103
S. Ct. at 1939). Duplicative and
unnecessary hours should be excluded from the total number of reasonable
hours. Id.
The
district court also should exclude from this initial fee calculation hours that
were not "reasonably expended."
S.Rep. No. 94‑1011, p. 6 (1976).
Cases may be overstaffed, and the skill and experience of lawyers vary
widely. Counsel for the prevailing
party should make a good faith effort to exclude from a fee request hours that
are excessive, redundant, or otherwise unnecessary, just as a lawyer in private
practice ethically is obligated to exclude such hours from his fee
submission. "In the private
sector, 'billing judgment' is an important component in fee setting. It is no less important here. Hours that are not properly billed to one's client
also are not properly billed to one's adversary pursuant to statutory
authority." Copeland v.
Marshall, 205 U.S.App.D.C. 390, 401, 641 F.2d 880, 891 (1980) (en banc)
(emphasis in original).
Hensley, 461 U.S. at 434, 103 S. Ct. at
1939-40.
Issues regarding hours can arise where: (1) there are
factual questions about whether the lawyer actually worked the number of hours
claimed; (2) there are legal questions about whether the work performed was
related to the claims on which the plaintiff prevailed[2];
and (3) there are mixed questions of law and fact regarding whether the
attorney spent too much or duplicitous time on certain matters. See Coulter v. Tenn., 805 F.2d
146, 150-51 (6th Cir. 1986). From there,
the court must determine whether the fee should be adjusted in light of the
results obtained, an inquiry which involves two questions: "First, did the
plaintiff fail to prevail on claims that were unrelated to the claims on which
he succeeded? Second, did the plaintiff
achieve a level of success that makes the hours reasonably expended a
satisfactory basis for making a fee award?" Hensley, 461 U.S. at 434, 103 S. Ct. at 1940.[3] The party seeking an award of fees bears the
burden of demonstrating that the request is reasonable. See Wooldridge v. Marlene Indus.
Corp., 898 F.2d 1169, 1176 (6th Cir. 1990).
1. Hourly Rate
The requested hourly rates of Gradisher's attorneys and
their staff are as follows:
O. Randolph Bragg
(attorney) $300.00
Craig Shapiro (law clerk) $ 85.00
Michael Kelly (law clerk) $ 85.00
Louis R. Lint (attorney) $175.00
Linda D. Pearson (legal
assistant) $ 50.00
In setting the proper rate for attorney fees, courts must use the prevailing market rate for similar services of local attorneys with comparable skill, experience, and reputation. Missouri v. Jenkins, 491 U.S. 274, 285-86, 109 S. Ct. 2463, 2470 (1989). With regard to the task of setting hourly rates, the Sixth Circuit has stated:
In determining what the level of compensation for each category of service should be, the court should look to the fair market value of the services provided. In most communities, the marketplace has set a value for the services of attorneys, and the hourly rate charged by an attorney for his or her services will normally reflect the training, background, experience and skill of the individual attorney. For those attorneys who have no private practice, the rates customarily charged in the community for similar services can be looked to for guidance.
Focusing on the fair market value of the attorney's services will best fulfill the purposes of the Fees Awards Act, by providing adequate compensation to attract qualified and competent attorneys without affording any windfall to those who undertake such representation. The entire purpose of the statutes was to ensure that the representation of important national concerns would not depend upon the charitable instincts of a few generous attorneys.
Northcross v. Bd. of Educ., 611 F.2d 624, 638 (6th Cir.
1979).
CEU has not objected to any of the requested hourly rates,
and the Court, being generally familiar with prevailing rates in the local
community, finds the requested rates to be reasonable. With regard to Bragg's rate of $300.00,
Gradisher has presented evidence showing that this rate is commensurate with
rates in the Western District of Michigan for an attorney of Bragg's experience
in consumer class action litigation.
(Anding Aff. ¶ 3.) Although
Bragg has indicated that the Northern District of California has found the
prevailing rate for his services to be $400.00, the Court declines to allow
that rate without some evidence showing it to be comparable to rates charged in
this community by attorneys with similar experience performing similar work.
2. Hours Reasonably Expended
The affidavits submitted by Gradisher's counsel show that
her attorneys and their staffs incurred the following numbers of hours: Bragg
(236.5); Kelly (110); Shapiro (2.8); Lint (74.3); and Pearson (11.9). In addition, Gradisher's counsel incurred
the following numbers of hours in preparing the attorney fee motion: Bragg
(17.6); Shapiro (5.4); Lint (1.2); and Pearson (.3). CEU contends that the hours incurred by Gradisher's counsel were
unreasonable. In general, CEU contends
that the hours were excessive, because it was not necessary for two attorneys
to bill time for attending the same depositions and hearings or for two
attorneys to bill for telephone calls or correspondence between themselves. CEU also contends that the hours spent on
specific motions, including the motion for class certification, motion to
strike exhibits, motion to compel, and Rule 56(f) motion, were excessive. Finally, CEU contends that the number of hours
incurred should be reduced by 50% because Gradisher failed to conduct discovery
early in the case which would have disclosed that CEU had a minimal net worth,
thus increasing the number of hours incurred as a result of the class
certification.
a. Billing by Two Attorneys
There is no hard and fast rule allowing or preventing more than one attorney from attending a deposition, hearing, or trial on behalf of a prevailing party. For example, in Aquilino v. University of Kansas, 109 F. Supp.2d 1319 (D. Kan. 2000), the court held that it was unreasonable for two attorneys to attend settlement conferences on behalf of the plaintiff, although it was not unreasonable for two attorneys to represent the plaintiff in depositions and during jury deliberations. See id. at 1326. In Schofield v. Trustees of the University of Pennsylvania, 919 F. Supp. 821 (E.D. Pa. 1996), the court held that it was not unreasonable for the plaintiff to claim fees for two attorneys at trial given the length of trial and the number or witnesses, although the court did hold that there was no reason for a paralegal to sit in at trial. See id. at 829. In Black v. M.G.A., Inc., 51 F. Supp.2d 1315 (M.D. Ala. 1999), the court stated that "[t]he hours of multiple attorneys are recoverable as long as the fee claimant shows that the time spent by those attorneys 'reflects the distinct contribution of each lawyer to the case and is the customary practice of multiple-lawyer litigation.'" Id. at 1317-18 (quoting Am. Civil Liberties Union of Ga. v. Barnes, 168 F.3d 423, 432 (11th Cir. 1999)). The court in Webner v. Titan Distribution, Inc., 101 F. Supp.2d 1215 (N.D. Iowa 2000), stated, "[g]enerally, the court finds that having two attorneys present at a deposition is unnecessary and duplicative," but allowed an exception in that case because the presence of both attorneys at the depositions contributed to the efficiency of the trial. Id. at 1232. Finally, in Schultz v. Amick, 955 F. Supp. 1087 (N.D. Iowa 1997), the court stated:
there is no per se rule that only one attorney should try a § 1983 claim or only one attorney should be compensated pursuant to § 1988. The proper question is whether the application, for one or more attorneys, is reasonable, eliminating inefficiencies or duplications that might arise from use of more than one attorney.
Id. at 1115 (citing A.J. v. Kierst, 56 F.3d 849,
865 (8th Cir. 1995)).
Gradisher contends that it was reasonable for two attorneys
to perform work on the case because class action cases such as this are
inherently complex. The Court does not
disagree with that proposition in general, but CEU's objection deals with two
attorneys billing for performing the same task, such as attending depositions
and hearings. Even though this case was
a class action and did generate a fair number of court filings, the case was
not burdensome: the legal issues were not overly complex, only a few
depositions were taken, and only a modest number of documents were involved.
Thus, there was no need for two attorneys at depositions and hearings. However, Bragg and Lint attended the same
deposition (the September 14, 2000, Johnson deposition) only once and attended
the same hearing on only three occasions.
CEU argues that Bragg's time should be eliminated because Bragg, who is
located in Chicago, flew to Grand Rapids for each hearing or deposition and
incurred significant expense for airline tickets as well as his travel time.[4] CEU contends that it would have been less
expensive for Lint, who is located forty miles from this Court, to attend the
depositions and hearings. There is no
question that it was more expensive for Bragg, rather than Lint, to attend the
deposition and hearings. However, the
billing records show that in the instance of the deposition, Lint attended for
only part of the time and Bragg attended the entire deposition. With regard to the hearings, Bragg acted as
lead counsel, and he and his law clerk prepared most, if not all, of the
pleadings and papers submitted to the Court.
Because Bragg was most familiar with the motions, it was appropriate for
him to attend the hearings. Therefore,
the Court will deduct a total of 14.1 hours spent by Lint on the deposition
(9/14/00 Johnson Dep.) and the hearings (1/8/01 Hr'g; 1/23/02 Hr'g.; and
6/12/02 Hr'g).
CEU also argues that apart from the appearances at the
deposition and the hearings, the time billed by Bragg and Lint for telephone
calls and correspondence between them was unnecessary because the case could
have been handled by a single attorney.
The time records show that Lint performed some separate tasks for which
Bragg or his law clerks billed no time.
However, there were several instances where both attorneys billed for
the same telephone call, or spent time reviewing the same order, letter,
discovery responses from CEU, etc. In
addition, Lint spent time reviewing motions and briefs which had already been
filed by Bragg's firm. However, even
though some of Lint's time may have been duplicative, using local counsel, such
as Lint was for Bragg, may actually save money by, for example, reducing the
amount of travel by out-of-state counsel.
In such cases, it may be necessary for both attorneys to talk about the
case and review the same orders, briefs, etc., to remain fully informed of the
proceedings and to realize the savings benefit of having local counsel. Nonetheless, having reviewed attorney Lint's
billings, the Court nonetheless determines that some of Lint's time was
unnecessary. Because the Court cannot
determine the amount of such time with mathematical certainty, the Court finds
that a 10 % reduction of Lint's hours would be sufficient to account for time
unnecessarily incurred by Lint.
b. Specific Objections
CEU contends that the time spent on preparing Gradisher's
motion to strike exhibits, Rule 56(f) motion, and motion to compel was excessive.[5] First, with regard to the motion for class
certification, Gradisher's counsel has agreed to reduce the hours spent by the
law clerk on the motion from almost fifty to ten. Given that Bragg spent less than six hours on the motion, the
Court finds this to be reasonable.
The Court has also reviewed the billings for the other
motions. According to the Court's
tally, Bragg's firm billed 13.7 hours on the motion to strike exhibits, 18.2
hours on the Rule 56(f) motion, and 5.5 hours on the motion to compel. With regard to the Rule 56(f) motion, Kelly,
the law clerk, billed 17.5 hours and Bragg billed .7 hours. The brief is slightly more than eight pages
long and cites only a handful of cases.
Given the nature of the motion, the Court finds that 10 hours would have
been a reasonable amount of time to prepare the motion. Therefore, the Court will reduce Kelly's
time by 7.5 hours and will disallow the .7 hours Bragg spent to review and
revise the motion and brief.
The Court also finds that the 13.7 hours spent on the motion
to strike exhibits was excessive. Bragg
spent 2.8 hours and Kelly billed 10.9 hours for completing the motion. The billing statement shows an additional
hour billed by Kelly on October 11, 2000 – the
same day the brief was filed with the Court.
More importantly, the motion and brief combined are only about eight
pages long, and the brief cites only three cases. Six hours would have been a reasonable amount of time to prepare
the motion and brief. Therefore, the
Court will allow all of Bragg's time but will reduce Kelly's time by 8.7
hours. The Court concludes that the 5.5
hours spent on the motion to compel was reasonable and, therefore, will not
reduce those hours.
Although CEU did not have the opportunity to object to the
fees sought in the supplemental declarations submitted by Gradisher's
attorneys, the Court has reviewed the hours spent on the fee request and finds
them to be excessive. Bragg and Shapiro
spent a total of 23 hours on preparation of the motion, the supporting brief,
the reply brief, and the Bragg affidavits.
The Court concludes that 15 hours would have been a reasonable amount of
time to complete the work in connection with the fee request. Therefore, 7.6 hours will be deducted from
Bragg's hours and .4 hours will be deducted from Shapiro's hours. The Court finds the number of hours spent by
Lint and Pearson on the fee request to be reasonable.
The Court will make an additional reduction of 1.6 hours
from attorney Lint's hours. In
reviewing his fee statement, the Court noted that the first seven entries,
totaling 1.6 hours, were for work performed on or before April 24, 1999. Gradisher did not receive the first letter
from CEU – the Due Process Notice – until
at least June 16, 1999. Therefore,
these hours do not relate to this case.
In sum, the Court finds the following hours to be
reasonable: Bragg (246); Kelly (54.9); Shapiro (7.8); Lint (44.8); and Pearson
(12.2). The lodestar figures are as
follows:
Attorney Bragg 245.8
hours x $300/hr. = $73,740.00
Law Clerk Kelly 93.8 hours x $ 85/hr. = $ 7,973.00
Law Clerk Shapiro 7.8 hours x $ 85/hr. = $ 663.00
Attorney Lint 53.8
hours x $175/hr. = $ 9,415.00
Legal Assistant Pearson 12.2
hours x $ 50/hr. = $ 610.00
Totals 413.7
$92,401.00
3. Results Obtained
CEU contends that the lodestar should be adjusted downward
by 50% for the results obtained. CEU
cites Altergott v. Modern Collection Techniques, Inc., 864 F. Supp. 778
(N.D. Ill. 1994), in which the court reduced the lodestar figure by
one-half. The court noted that it had
suggested early in the case that the plaintiff's lawyers might obtain a
judgment by filing a motion for judgment on the pleadings based upon the
defendant's admission in its answer that the validation notice contained in the
first letter was incomplete and violated the FDCPA. Id. at 783.
However, the plaintiff's attorneys continued to litigate the case
aggressively and, after that point, incurred substantial fees for a
"relatively simple case [that] could have and should have been pursued in
a far more efficient manner." Id.
While this case was not complex, it was not "relatively
simple" as in Altergott. In
other words, CEU has not suggested that Gradisher could have obtained complete
relief by filing a motion for judgment on the pleadings. It should be recalled that CEU defended this
case aggressively, initially asserting that it was not a debt collector under
the FDCPA in a motion for summary judgment, which the Court denied. Almost a year after the Court's ruling, CEU
filed a motion for leave to file an interlocutory appeal of that decision,
which the Court also denied. CEU filed
many other motions, including a motion for relief from an order and a motion
for clarification of the Court's ruling on CEU's debt collector status. In addition, CEU did not admit any
violations of the FDCPA, but instead vigorously defended Gradisher's motion for
partial summary judgment.
"[D]efense counsel 'cannot litigate tenaciously and then be heard
to complain about the time necessarily spent by the plaintiff in
response.'" Knop v. Johnson, 712 F. Supp. 571, 578 (W.D. Mich.
1989) (quoting City of Riverside v. Rivera, 477 U.S. 561, 106 S. Ct.
2686 (1986)).
The Court does conclude, however, that a downward adjustment
is warranted for only partial success.
It is true that Gradisher's attorneys were very successful because the
Court awarded Gradisher the maximum statutory damages. On the other hand, many of the hours expended
by Gradisher's counsel were in connection with class certification and other
class issues. Even though a class was
certified, no recovery was made on behalf of the class because the Court
ultimately decertified the class. Thus,
Gradisher was the only person to have benefitted directly from this
litigation. Moreover, the Court
concludes that the hours expended in the litigation are not in line with the
level of success achieved in other cases where class recoveries were
obtained. FDCPA class action cases
involving substantial class recoveries provide a basis for this
conclusion. In Cortez v. Trans Union
Corp., No. 94 C 7705, 1997 WL 7568 (N.D. Ill. Jan. 3, 1997), the plaintiff
received only ten percent of the statutory maximum and did not prevail on two
of her three claims, but she did obtain a class recovery of almost
$80,000.00. Id. at *3. The court's opinion does not indicate the
number of hours claimed, but the award
was for approximately seventy hours of work.
Id. at *4. In Avila v.
Van Ru Credit Corp., No. 94 C 3234, 1995 WL 683775 (N.D. Ill. Nov. 16,
1995), the plaintiff obtained the maximum statutory damages for the class,
totaling more than $100,000.00. Id.
at *11. The court reduced the total
hours from 356 to 244.25.[6] Id. at *3-10. Here, the total hours expended by
Gradisher's counsel and their staffs was 365.7.
Because the hours spent on class issues in this case did not
produce a benefit to the class in terms of an economic recovery, the Court
concludes that the fee award should not include time spent on class
certification and related issues.
Having thoroughly reviewed the billing records submitted by Gradisher's
counsel, the Court will exclude a total of 119 hours spent on class issues from
the award (Bragg (54.1); Shapiro (2.0); Kelly (49.9); Lint (9.9); and Pearson
(3.1)).[7] Therefore, the award will be reduced by
$22,529.00 (Bragg ($16,230.00); Shapiro ($170.00); Kelly ($4,241.50); Lint
($1,732.50); and Pearson ($155.00)), for a total fee award of $69,872.00
($92,401.00-$22,529.00).
B. Expenses
Gradisher also seeks an award of expenses in the amount of
$9,691.83 incurred by Bragg's firm and expenses in the amount of $1,168.61
incurred by Lint's firm. In addition,
Gradisher seeks to recover expenses of $37.28 incurred by Bragg's firm and
$1.00 incurred by Lint's firm in connection with the request for fees. The expenses incurred by Bragg's firm were
for telephone/fax, postage, overnight delivery, copying, computer-assisted
research, travel (airfare), service of process, and deposition
transcripts. The expenses incurred by
Lint's firm were for postage, telephone, filing fees, copying, mileage,
parking, deposition fees and transcripts, overnight delivery, and lunch for
Gradisher's counsel. CEU objects to the
costs incurred by Bragg for airfare to Grand Rapids. CEU also maintains that the charges for phone and copying contain
no detail, and therefore should be eliminated or reduced. Finally, CEU contends that expenses for
postage and computer-assisted legal research should be considered a part of
overhead not normally billed to clients and, therefore, not allowed.
In determining whether a particular expense may be recovered
as part of expenses under a statute authorizing awards of attorney fees and
expenses, such as § 1692k(a)(3), courts have generally held that an award may
include expenses not defined as "costs" in the costs statute, 28
U.S.C. § 1920, if they are of a type billed separately to the client, i.e., not
absorbed in the attorney's hourly rate as overhead. LeBlanc-Sternberg v. Fletcher, 143 F.3d 748, 763 (2d Cir.
1998) ("'[A]ttorney's fees awards include those reasonable out-of-pocket
expenses incurred by attorneys and ordinarily charged to their clients.'")
(quoting United States Football League v. Nat'l Football League, 887
F.2d 408, 416 (2d Cir. 1989)); Cleveland Area Bd. of Realtors v. City of
Euclid, 965 F. Supp. 1017, 1023 (N.D. Ohio 1997) ("An attorney's fee
under § 1988 includes those expenses that are incurred in order for the
attorney to render his or her legal services and that would normally be charged
to a fee-paying client.")
With regard to the expenses incurred by Bragg's firm, the
Court notes that there are certain expenses to which CEU does not object and
which are recoverable as costs under 28 U.S.C. § 1920. Those expenses include $1,145.50 for copies
of deposition transcripts. See Sales
v. Marshall, 873 F.2d 115, 120 (6th Cir. 1989) (stating that "expenses
of taking, transcribing and reproducing depositions" are taxable as
costs). In addition, the service fees
in the amount of $130.12 are also taxable as costs. 28 U.S.C. § 1920(3).
Finally, copying expenses may be taxed as costs. Nat'l Truck Equip. Ass'n v. Nat'l Highway
Traffic Safety Admin., 972 F.2d 669, 674 (6th Cir. 1992). According to the Court's tally, Bragg's firm
incurred $1,398.45 for copying charges.
However, the Court will reduce this amount by 25% due to lack of any
description showing why the charges were incurred, i.e, whether they were reasonably
incurred in connection with this case.
Therefore, $1,048.84 will be awarded for copying expenses.
Bragg's firm also incurred expenses for computer-assisted
legal research, travel, overnight delivery, postage, telephone, and
facsimile. Courts have found that
expenses ordinarily charged to clients include photocopying, travel, telephone
costs, postage, and computer-assisted legal research. Pinkham v. Carnex, Inc., 84 F.3d 292, 294-95 (8th Cir.
1996); Ace Ltd. v. Cigna Corp., No. 00 CIV. 9423 (WK), 2001 WL 1286247,
at *8 (S.D.N.Y. Oct. 22, 2001) (quoting Marisol A. v. Giuliani, 111 F.
Supp.2d 381, 401 (S.D.N.Y. 2000)); Minnick v. Dollar Fin. Group, Inc.,
No. CIV.A. 02-1291, 2002 WL 1023101, at *150 (E.D. Pa. May 20, 2002). The amount incurred for these charges is
$7,367.42. Although this amount is for
expenses that are normally charged to a client separate from the attorney's
time, the Court concludes that a 30% reduction, which approximates the number
of hours disallowed for class issues, should be applied to expenses (including
copying expenses taxed as costs) because some portion of the expenses sought
relate to class certification and other class issues, for which no recovery was
obtained. Because the expense
statements do not indicate which expenses relate to which aspects of the case,
application of the 30% rate is an appropriate method of formulating an adequate
reduction. Therefore, the Court will
award $5,891.38 for all expenses other than deposition transcripts and service
fees. The total award for expenses
incurred by Bragg's firm, including the $37.28 sought in connection with
preparation of the fee request, is $7,204.28.
The expenses incurred by Lint's firm which may be taxed as
costs include the $150.00 filing fee, a $270.90 charge for a deposition
transcript, and $91.49 for copying.
With regard to the deposition transcript, the Court notes that Lint's
statement contains two identical entries for $270.90. It appears that the second $270.90 charge is a duplicate entry,
and therefore, the second charge will be deducted as set forth below. Finally, the Court will make the same 25%
reduction made for Bragg's copying costs due to lack of adequate
description. Thus, the allowable
copying charges are $68.62.
The amount of expenses remaining after deducting taxable
costs is $656.22. The following
expenses will be deducted that figure: (a) $20.49 lunch charge; (b) $173.08 in
mileage in parking fees for attendance at the deposition and hearings also
attended by Bragg; and (c) $270.90 for the duplicate deposition charge. The amount of expenses remaining is thus
$260.37 (including copying charges), to which the Court will apply the 30%
reduction applied to Bragg's expenses.
Applying the deduction leaves $182.26 in expenses. Therefore, the total amount of expenses,
which includes the filing fee, the deposition transcript charge, the other
allowable expenses, and the $1.00 incurred in connection with the fee request,
is $604.16.
IV. Conclusion
For the foregoing reasons, the Court will award Gradisher
attorney fees in the amount of $69,872.00 and expenses in the amount of
$7,808.44.
An Order consistent with this Opinion will be entered.
Dated:
January 22, 2003 /s/ Gordon
J. Quist
GORDON
J. QUIST
UNITED
STATES DISTRICT JUDGE
[1]In his second supplemental affidavit, attorney Bragg
states that the United States District Court for the Northern District of
California recently found the prevailing rate for Bragg's services to be $400
per hour, which the Court construes as a request for in increase of his initial
rate of $300 per hour. The requested
increase would result in an additional fee of approximately $24,000.00.
[2]While the attorney fee provision of the FDCPA does not
use the "prevailing party" language found in other attorney fee
statutes, it is nonetheless proper to exclude hours spent on unsuccessful
claims bearing no relationship to the FDCPA claims.
[3]A court may consider the twelve factors set forth in Johnson
v. Ga. Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974), in determining
the initial lodestar rate or in making adjustments to that rate. Adcock-Ladd, 227 F.3d at 349. However, as the Court observed in Hensley,
many of those factors will usually be taken into consideration in the initial
assessment of hours reasonably expended and the reasonable hourly rate. Hensley, 461 U.S. at 434 n.9, 103 S.
Ct. at 1940 n.9.
[4]Bragg explained in his second supplemental affidavit
that he was required to fly rather than drive to Grand Rapids from Chicago
because he cannot drive an automobile due to health problems. (Bragg 2d. Supplemental Decl. ¶ 2.) Bragg's explanation is sufficient to
demonstrate his need to travel by air.
[5]CEU also contends that the hours spent on the class
certification motion and supporting brief were excessive. The Court will address the class
certification issue in its discussion on the results obtained.
[6]The plaintiff's lawyers in Cortez also
represented the plaintiff in Avila, where the rates and hours of each
lawyer were specifically identified by the court. Using those hourly rates, this Court was able to extrapolate the
number of hours incurred in Cortez.
[7]The hours deducted include hours spent on the motion
for class certification, approval of the notice, clarification of class
membership, class damages, and decertification.