Browne v. Equifax Information Services LLC

District Court, N.D. Indiana·Decided September 27, 2024·No. 4:23-cv-00064·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA HAMMOND DIVISION AT LAFAYETTE

ERIN BROWNE, ) ) Plaintiff, ) ) v. ) Case No. 4:23-cv-64-GSL-AZ ) EQUIFAX INFORMATION ) SERVICES LLC, ) ) Defendant. )

OPINION AND ORDER

This matter is before the Court on Defendant Equifax Information Services LLC’s Motion for Sanctions Against Duran Keller [DE 52], filed on July 31, 2024. Equifax seeks monetary sanctions from Plaintiff’s counsel in an amount that corresponds to the attorney’s fees it incurred filing a successful discovery motion. While Equifax has styled its motion as seeking sanctions pursuant to 28 U.S.C. § 1927 for “vexatious” litigation behavior, the relief it seeks is reimbursement of costs associated with having to file a motion for protective order. Such relief is available and more appropriately awarded pursuant to Rule 37(a)(5)(A) of the Federal Rules of Civil Procedure, and the Court will construe the motion as being made pursuant to Rule 37. The Court further finds the requested relief appropriate, in part, and it will grant Equifax’s motion and award it $1,787.50 in attorney’s fees, to be paid by Plaintiff’s counsel Duran Keller. Background The central allegation in this lawsuit is that Equifax kept an inaccurate entry on Plaintiff Erin Browne’s credit report. She says Equifax continued to report this inaccurate debt even after she disputed it with the company, in violation of the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq. DE 10 at ¶¶ 6–8.

Browne served a notice of deposition of Equifax pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure that contained 26 topics on which Browne sought testimony. Equifax served objections to some of the deposition topics, and after an unsuccessful meet-and-confer in which Browne did not modify or withdraw any of the topics, Equifax filed a motion for a protective order on April 11, 2024. DE 37. Equifax asked that the Court prohibit Browne from seeking testimony as to eight topics that

Equifax maintained were irrelevant, overly burdensome, or otherwise not proportional to the needs of the case. Id. While this matter was still before Magistrate Judge Martin, Browne sought an extension of time to respond to Equifax’s motion. DE 40. The Court granted it and gave Browne until May 28, 2024, to respond to both the motion for protective order and to another motion by Equifax to compel discovery. DE 41. After the matter was reassigned to me in June 2024, and no responses had been filed, I gave Browne one

final opportunity to respond to both pending motions. DE 44. Browne then filed a response to the motion to compel, see DE 46, but never responded to the motion for protective order. Without the aid of a response from the party seeking the discovery, I granted the motion for protective order and sustained nearly all of Equifax’s objections to the Rule 30(b)(6) deposition notice. DE 49. This motion for sanctions followed shortly thereafter. In its motion—which at 2 times reads like a cathartic airing of grievances against Plaintiff’s counsel in this and other cases—Equifax states that counsel’s actions of noticing a Rule 30(b)(6) deposition, refusing to modify or withdraw any topics, and then failing to respond to

the motion for protective order “fits within a pattern of other obstructive, dilatory, and abusive conduct in this case.” DE 53 at 5. That alleged “pattern” includes: i) Refusing to agree to the Template Protective Order of a previously assigned magistrate judge, thereby forcing Equifax to file a successful motion for its entry; ii) Initially refusing to let an Equifax employee being deposed take a lunch break during the deposition upon her request, and only relenting when undersigned counsel threatened to call the Court; iii) Opposing Equifax’s proposed Amended Answer, but ultimately not filing any response in opposition to Equifax’s Motion to Amend; iv) Objecting to the depositions of Plaintiff’s therapists, delaying them by months; and v) Blatantly misrepresenting to the Court the content of Equifax’s Motion to Compel the depositions of Plaintiff’s therapists, and falsely claiming that limited-scope releases ‘cleared the roadblocks to Equifax’s discovery requests,’ a claim which this Court rejected when it granted Equifax’s Motion to Compel. Id. at 5 (citations omitted). Despite spending the bulk of its motion discussing them, Equifax does not seek attorney’s fees or sanctions for any these other occurrences. Instead, “Equifax seeks an award of reasonable attorney’s fees in the amount of $5,575, based on attorney Theodore Roethke’s approximately 10.3 hours of work spent on Equifax’s Motion for Protective Order multiplied by his ‘discount hourly rate’ of $475…and based on [attorney Jennifer Brooks’s] approximately 1.5 hours of work spent on the Motion [for Protective Order] multiplied by [her] ‘discount hourly rate’ 3 of $455.” Id. at 7–8. This time, Plaintiff’s counsel responded, contesting Equifax’s characterizations and explaining why his conduct was not “vexatious” but instead zealous advocacy on

behalf of his client. With regard to his failure to respond to Equifax’s motion for protective order, Plaintiff’s counsel says it was the result of “excusable neglect, caused by a cross-country move undertaken by counsel, counsel’s family, and counsel’s legal practice, compounded by the demands of a recent jury trial.” DE 61 at 1. Discussion A. Equifax’s Motion Seeks Relief that is Available and More Appropriately Sought Under Rule 37. On the face of its motion, Equifax seeks relief pursuant to the federal “vexatious litigation” statute. The relevant statute states in full that: “Any attorney or other person admitted to conduct cases in any court of the United States or any Territory thereof who so multiplies the proceedings in any case unreasonably and vexatiously may be required by the court to satisfy personally the excess costs,

expenses, and attorneys’ fees reasonably incurred because of such conduct.” 28 U.S.C. § 1927. For sanctions to be awarded under Section 1927, “[t]he moving party must show ‘extremely negligent conduct, like reckless and indifferent conduct,’” as opposed to run-of-the-mill adversarial conduct that is, for better or worse, a hallmark of the American legal system. Solomon v. Wardlaw Claim Serv., LLC, 2018 WL 2293005, at *2 (N.D. Ind. May 18, 2018) (quoting Pacific Dunlop Holdings, Inc. v. Barosh, 22 F.3d

113, 120 (7th Cir. 1994)). Any sanction under Section 1927 is wholly discretionary and never mandatory. Corley v. Rosewood Care Ctr., Inc. of Peoria, 388 F.3d 990, 1014 4 (7th Cir. 2004) (“Section 1927 is permissive, not mandatory. The court is not obliged to grant sanctions once it has found unreasonable and vexatious conduct. It may do so in its discretion.”).

Equifax does not, however, ask the Court to award monetary relief in connection with most of the “vexatious” conduct it identifies relating to stipulated protective orders, amended answers, deposition conduct generally, or an unrelated discovery motion. Instead, it seeks relief limited to awarding attorney’s fees incurred in connection with prevailing on a motion for a protective order relating to one specific deposition. In other words, it seeks fees incurred related to what it says was Plaintiff’s

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