Camacho v. Bridgeport Financial

CourtCourt of Appeals for the Ninth Circuit
DecidedApril 21, 2008
Docket07-15297
StatusPublished

This text of Camacho v. Bridgeport Financial (Camacho v. Bridgeport Financial) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Camacho v. Bridgeport Financial, (9th Cir. 2008).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

RITA CAMACHO, on behalf of  herself and all others similarly No. 07-15297 situated, Plaintiff-Appellant, D.C. No. v.  CV-04-00478- CRB/MEJ BRIDGEPORT FINANCIAL, INC.; RAY OPINION LEWIS; CHRISTINA HARBRIDGE, Defendants-Appellees.  Appeal from the United States District Court for the Northern District of California Charles R. Breyer, District Judge, Presiding

Argued and Submitted March 13, 2008—San Francisco, California

Filed April 22, 2008

Before: Stephen Reinhardt, Melvin Brunetti, and Raymond C. Fisher, Circuit Judges.

Opinion by Judge Brunetti

4239 4242 CAMACHO v. BRIDGEPORT FINANCIAL

COUNSEL

Richard M. Pearl, Law Offices of Richard M. Pearl, Berkeley, California; O. Randolph Bragg, Horwitz, Horwitz & Asso- ciates, Chicago, Illinois; Irving L. Berg, The Berg Law Group, Corte Madera, California; and Richard J. Rubin, Santa Fe, New Mexico, for the plaintiff-appellant.

Mark E. Ellis and June D. Coleman, Ellis, Coleman, Poirier, La Voie & Steinheimer, LLP, Sacramento, California, for the defendants-appellees.

OPINION

BRUNETTI, Circuit Judge:

Rita Camacho (Camacho) appeals the district court’s order awarding her $77,069.36 in merits fees, costs, and fees-on- fees. The district court determined Camacho’s award by mul- tiplying the number of hours worked by each of her three attorneys by an hourly rate of $200, by compensating Cama- cho for costs, and by awarding Camacho a “flat award” of $500. We have jurisdiction under 28 U.S.C. § 1291, and we vacate and remand.

I. Facts and Proceedings Below

In the underlying action, Camacho, a debtor, sued Bridge- port Financial, Inc. (Bridgeport Financial), a debt collector, in CAMACHO v. BRIDGEPORT FINANCIAL 4243 a putative class action alleging violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692g, 1692e. Camacho alleged that Bridgeport Financial misrepre- sented the rights of consumers in its initial collection letter by requiring her to dispute her debt in writing. Bridgeport Finan- cial filed a motion to dismiss, arguing that section 1692g(a)(3) implicitly requires disputes to be made in writing. The district court denied Bridgeport Financial’s motion to dismiss, certi- fied the issue for interlocutory appeal, and we affirmed in a published opinion. See 430 F.3d 1078, 1082-83 (9th Cir. 2005). We held that the district court correctly denied Bridge- port Financial’s motion to dismiss because there is no writing requirement implicit in section 1692g(a)(3), and that Bridge- port Financial violated that section insofar as it stated that dis- putes must be made in writing. Id. at 1082.

On remand, the litigation focused on class certification, Bridgeport Financial’s net worth, and the class remedy. After the district court approved a statewide class, consisting of more than 7,000 members, the parties settled. Pursuant to the parties’ Class Action Settlement Agreement, the court ordered Bridgeport Financial to pay a cy pres award of $341.50 to Legal Services of Northern California for use in consumer education or representation, and $1,000 in actual and statutory damages to Camacho. Bridgeport Financial also agreed to pay reasonable and necessary attorneys’ fees and costs, to be determined by the court absent an agreement by the parties. The parties did not reach an agreement and Camacho filed her Motion for an Award of Costs and Attorney Fees.

During the course of this litigation, three attorneys repre- sented Camacho, Irving L. Berg (Berg), O. Randolph Bragg (Bragg), and Richard J. Rubin (Rubin). Berg and Bragg repre- sented Camacho during proceedings in the district court, and Camacho retained Rubin to handle the interlocutory appeal.

In her motion, Camacho sought to recover fees and costs totaling $167,434.36. This total included $56,142.50 (132.1 4244 CAMACHO v. BRIDGEPORT FINANCIAL hours x $425/hour) in fees and $192.41 in costs for Berg; $72,772.50 (156.5 hours x $465/hour) in fees and $5,823.71 in costs for Bragg; $1,495.00 (13 hours x $115/hour) in fees for Bragg’s law clerk/associate; $115.00 (1 hour x $115/hour) for the services of Bragg’s paralegal; and $30,100.00 (60.2 hours x $500/hour) in fees and $793.24 in costs for Rubin. Included in the attorneys’ requests were hours spent pursuing fees. Berg, Bragg, and Rubin each provided a declaration sup- porting their respective fee/costs requests, and Camacho also filed declarations from two additional attorneys in support of her motion. Bridgeport Financial filed an opposition to Cama- cho’s motion which included numerous exhibits and declara- tions from two more attorneys.

Camacho also explained in her motion that her attorneys would submit a supplemental declaration detailing additional time and costs expended. Bragg ultimately did so, filing a supplemental declaration wherein he sought an additional $12,373.00: $7,533.00 (16.2 hours x $465/hour) in fees for his services, and $4,840.00 (24.2 hours x $200/hour) in fees for his law clerk/associate’s services. Although Bridgeport Finan- cial objected to portions of Camacho’s three attorneys’ decla- rations, and objected to the two additional attorneys’ declarations and Bragg’s supplemental declaration in their entirety, the district court never ruled on these objections and Bridgeport Financial never requested a ruling.

In its Second Amended Order, the district court noted that Camacho sought to recover $6,809.36 in litigation expenses and $160,625.00 in fees. This total reflects the amount requested in Camacho’s initial motion, but does not account for the amount requested in Bragg’s supplemental declaration. The court went on to explain that:

Here, the Court is satisfied that the number of hours spent upon this case by [Camacho’s] three attorneys . . . is reasonable. The attorneys spent their time on motions brought by [Bridgeport Financial] and CAMACHO v. BRIDGEPORT FINANCIAL 4245 defending the case against an appeal brought by [Bridgeport Financial]. While the Court acknowl- edges that [Camacho’s] three attorneys were already exceedingly well-versed on the narrow legal ques- tion presented in the case, the Court nonetheless finds that the hours spent on the matter were reason- able. The Court holds, however, that it would be unreasonable on the facts of this case to award the full amount requested by these attorneys. Rather than awarding the full hourly rate suggested by [Cama- cho], the Court finds, in rough accord with numerous other courts that have considered the issue in pub- lished and unpublished opinions, that a reasonable rate for fees for an action brought for the violation of a mandatory provision of the FDCPA is $200.00 per hour.

(Footnote omitted.) Therefore, the court awarded Berg $26,420.00 (132.1 hours x $200/hour), Bragg $31,300.00 (156.5 hours x $200/hour), and Rubin $12,040.00 (60.2 hours x $200) in fees. The court also awarded Berg $192.41, Bragg $5,823.71, and Rubin $793.24, their requested costs. The court then held that the fees submitted by Bragg on behalf of his law clerk/associate ($1,495.00) and paralegal ($115.00) were reasonable, but did not account for these amounts in its ultimate award. To this point, the court awarded Camacho $6,809.36 in costs, and $69,760.00 in fees.

Finally, the court found that while Camacho indicated an intent to seek a supplemental award of costs, expenses, and fees, a substantial award of fees-on-fees would be inappropri- ate in this case.

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