Adonizio v. Credit Control Services, Inc.

CourtDistrict Court, M.D. Florida
DecidedJanuary 3, 2023
Docket6:21-cv-00144
StatusUnknown

This text of Adonizio v. Credit Control Services, Inc. (Adonizio v. Credit Control Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adonizio v. Credit Control Services, Inc., (M.D. Fla. 2023).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION PATRICK ADONIZIO, Plaintiff, Vv. Case No. 6:21-cv-144-JA-DAB CREDIT CONTROL SERVICES, INC., Defendant.

ORDER Although the Supreme Court has cautioned that “[a] request for attorney’s fees should not result in a second major litigation,” Hensley v. Eckerhart, 461 U.S. 424, 437 (1983)), that indeed has occurred in this case. The parties resolved the merits of this Fair Debt Collection Practices Act action in March 2022 through an accepted offer of judgment that provided that the judgment to be entered “shall include reasonable attorneys’ fees and costs incurred by Plaintiff as allowed by the Court pursuant to this offer.” (Doc. 26-1 at 2). But both before and since then, the parties have been fighting about what amount of attorney’s fees is reasonable. As explained in this Order, the Court determines that that amount is $8,895.00—far less than the $45,000.00 requested by Plaintiff. L Background This acrimonious litigation began with a $93.31 bill for medical laboratory

work. (See Compl., Doc. 1, § 12). Although Plaintiff apparently paid that bill, beginning in February 2020 Defendant repeatedly sent Plaintiff dunning letters attempting to collect payment from him. (See id. 4 13-18). Eventually, in June 2020, Defendant reported adverse credit information to credit reporting agencies, (see id. § 19), and this inaccurate information allegedly affected Plaintiffs ability to obtain favorable rates on a mortgage and mortgage insurance, (see id. 4] 22-23). Plaintiff filed this lawsuit in January 2021 under the federal Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collection Practices Act (FCCPA), both of which allow for recovery of actual damages, statutory damages of up to $1,000.00, and reasonable attorney’s fees and costs. See 15 U.S.C. § 1692k(a) (FDCPA); § 559.77(2), Fla. Stat. (FCCPA). The Complaint alleged that Plaintiff had “suffered significant actual damages,” (Compl. 4 24), including the higher mortgage-related costs. The parties mediated the case on January 31, 2022, but did not resolve it at that time. (See Mediator’s Notice of Impasse, Doc. 23). Two months later, Plaintiff accepted an offer of judgment from Defendant—after having rejected two other offers made since the mediation. (See Doc. 39-1). The accepted offer provided for entry of judgment against Defendant in the amount of $1,001.00 on the FDCPA claim, plus $1,001.00 on the FCCPA claim, plus $448.00 in actual damages—a total of $2,450.00 in damages— and provided that “[t]he Judgment

shall include reasonable attorneys’ fees and costs incurred by Plaintiff as allowed by the Court.” (d. at 16). The day after Plaintiff filed his Notice of Accepted Offer of J udgment (Doc. 26), the assigned magistrate judge ordered the parties to mediate the issue of fees and costs. (See Order, Doc. 28). But Plaintiff then filed a Motion to Amend the Court’s Mediation Order (Doc. 29), seeking relief from the mediation requirement.' A different magistrate judge granted that motion in part, scheduling a settlement conference to be held by her in lieu of mediation with a private mediator. (See Mins., Doc. 32; Order, Doc. 34). That settlement conference was held in May 2022, but the parties did not reach an agreement on attorney's fees during that two-hour proceeding. (See Mins., Doc. 37). Plaintiff then filed his Motion for Attorney’s Fees, requesting $39,990.00 in fees (133.3 hours at an hourly rate of $300 per hour) plus $1,481.10 in costs. (See Doc. 39). Defendant filed a Motion to Compel and Motion to Stay (Doc. 40), seeking an order requiring Plaintiff to produce his retainer agreement with Plaintiffs counsel and staying resolution of Plaintiffs motion for fees until resolution of the motion to compel. Before the Court ruled on that motion,

‘In that motion, Plaintiff requested that the Court either (1) remove the mediation requirement outright because the parties were not likely to reach an agreement; (2) require Defendant to cover the costs of the mediation; or (3) relieve Plaintiff, personally, of the obligation to attend the mediation and allow Plaintiffs attorney to attend alone. In support of the third form of requested relief, the motion stated in part, “Plaintiff himself has nothing to do with deciding the amount of reasonable attorney’s fees and costs.” (Doc. 29 at 3).

Defendant filed a Response (Doc. 42) to Plaintiff's fee motion; Defendant did not challenge the requested hourly rate but did contest the reasonableness of the number of hours claimed. Defendant also objected to all but $400.00—the court filing fee—of Plaintiff's requested costs. (See id. at 18-19). Both motions were referred to the assigned magistrate judge, who issued a nine-page Report (Doc. 44) recommending a fee award of $6,000.00 and that the Motion to Compel and Motion to Stay be denied as moot. Plaintiff has filed Objections (Doc. 45)? to the Report, and Defendant has filed a Response (Doc. 46) to those Objections. Having conducted the required de novo review of those portions of the Report to which objection has been made,? the Court finds merit in some, but not most, of Plaintiffs objections. Accordingly, the magistrate judge’s Report will be approved in part, and Plaintiff will be awarded more than the Report recommends. Il. The Report and Recommendation (Doc. 44) As noted, the Report recommends a fee award of $6,000.00—significantly less than what Plaintiff requested. The Report explains that Defendant’s challenges to Plaintiffs claimed hours focus on the evolution of the case and the fact that the maximum amount and the type of Plaintiffs damages changed

2 With his Objections, Plaintiff submitted updated time sheets (through the filing of the Objections), requesting an additional $5,010.00 (16.7 hours x $300/hour) in attorney’s fees. (See Doc. 45 at 10; Doc. 45-1 at 24-25). His total request is now for $45,000.00 in attorney’s fees plus $1,481.00 in costs. 3 See 28 U.S.C. § 636(b)(1).

shortly after suit was filed. Specifically, in May or June 2021—four or five months into the suit—Plaintiff sold the house that was the subject of the “higher cost” mortgage allegedly caused by the FDCPA and FCCPA violations.4 Yet, Plaintiff did not disclose this turn of events—which stopped Plaintiffs actual economic damages from accruing further, leaving only de minimis actual damages plus statutory damages capped at $1,000.00 on each of the two counts—and Defendant did not become aware of it until seven or eight months later, at the January 31, 2022 mediation. As the Report explains, Defendant thus argued that “the case was extended and complicated because Plaintiff and his counsel failed to advise of this significant change in the basis for the litigation,” and Defendant urged “that the great bulk of attorney time spent after” the June 2021 home sale was “unnecessary and therefore unreasonable.” (Doc. 44 at 6). The magistrate judge agreed in large part with Defendant, concluding that “Plaintiffs failure to be forthcoming as to the fact [that after the home sale] the case concerned only essentially a de minimis damage claim undoubtedly interfered with the progress of the case.” (Id. at 7). The magistrate judge noted

+ The house was sold in either May or June 2021. Plaintiff refers to the sale as having occurred in June, (see Doc. 39 at 2): Defendant identifies a date in May as the sale date, (see Doc. 42 at 3, 5, & 6; Doc. 42-2 at 2); and the magistrate judge’s Report refers to the sale occurring in June, (see Doc. 44 at 6).

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Bluebook (online)
Adonizio v. Credit Control Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/adonizio-v-credit-control-services-inc-flmd-2023.