FRANKLIN v. NATIONAL CREDIT SYSTEMS, INC.

CourtDistrict Court, S.D. Indiana
DecidedMarch 31, 2025
Docket1:23-cv-01802
StatusUnknown

This text of FRANKLIN v. NATIONAL CREDIT SYSTEMS, INC. (FRANKLIN v. NATIONAL CREDIT SYSTEMS, INC.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FRANKLIN v. NATIONAL CREDIT SYSTEMS, INC., (S.D. Ind. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION

JESSICA FRANKLIN, ) ) Plaintiff, ) ) v. ) No. 1:23-cv-01802-SEB-TAB ) NATIONAL CREDIT SYSTEMS, INC., ) ) Defendant. )

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF'S MOTION FOR ASSESSMENT OF ATTORNEY FEES AND COSTS

Now before the Court is Plaintiff Jessica Franklin's request for an order awarding attorneys' fees and a reimbursement of costs [Dkt. 34] incurred by her in securing an offer of judgment from Defendant National Credit Systems, Inc. ("National Credit") in the above-captioned cause. Specifically, Ms. Franklin seeks $19,117.50 in attorney fees and $454.00 in costs, for a total award of $19,571.50.1 For the reasons detailed below, we GRANT IN PART Ms. Franklin's request. Factual Background This is the second of two nearly identical lawsuits filed in this court by Ms. Franklin against National Credit, alleging that National Credit's failure to report the debt at issue as "disputed" in its submissions to consumer reporting agencies is violative of the Federal Debt Collection Practices Act ("FDCPA"). The prior case, Jessica Franklin v.

1 Plaintiff originally requested $19,440.00 in attorney fees and $454.00 in costs, for a total award of $19,894.00, but in her reply in support of her motion withdrew certain time entries from her request, which will be described in more detail below. National Credit Systems, Inc., Case No. 1:23-cv-00515-RLY-MJD (S.D. Ind. 2023), was filed on March 23, 2023, and ultimately settled outside of court. The parties filed their

notice of settlement on April 27, 2023, and the case was closed on the Court's docket on June 7, 2023. The settlement released all claims for costs and attorney fees through and including May 1, 2023. Sometime after that first case was resolved, Ms. Franklin checked her credit report and discovered that National Credit again had failed to show the debt as disputed. Shortly thereafter, on October 6, 2023, Ms. Franklin filed the instant lawsuit alleging, as

she had in the first lawsuit, that National Credit had violated the FDCPA by failing to report the debt as disputed.2 The complaint filed in this lawsuit is nearly identical to the one filed in the first lawsuit, save for the addition of one paragraph and a few other insubstantial changes. Other than an updated credit report attached to the instant complaint, the exhibits attached are otherwise the same as those attached to the first

complaint. In a November 7, 2023 email to Ms. Franklin's counsel, defense counsel offered to settle this second lawsuit for $2,500.00. Ms. Franklin rejected that offer, and on November 15, 2023, National Credit answered the complaint and included 16 affirmative defenses. In response, Ms. Franklin filed a 17-page motion to strike National Credit's

2 National Credit asserts that the parties' settlement agreement resolving the first lawsuit contained a provision whereby National Credit could cure any default on those settlement terms, but rather than notifying National Credit of the default as provided by the settlement agreement, Ms. Franklin instead filed the second lawsuit. Ms. Franklin disputes this interpretation of the settlement agreement. affirmative defenses, arguing that most, if not all, should be stricken and dismissed with prejudice because they were without a factual basis. National Credit responded with a

13-page brief in opposition, to which Ms. Franklin submitted a 5-page reply. On January 16, 2024, the Court granted in part the motion to strike, acknowledging the "numerous … problems" with National Credit's affirmative defenses, but also expressing frustration that Plaintiff's counsel had made no attempt to confer with National Credit in an effort to resolve the issue before filing a motion to strike. Ultimately, National Credit's affirmative defenses were stricken without prejudice and National Credit was provided

leave to file an amended answer, which it did on January 30, 2024. Two days later, on February 1, 2024, National Credit made an Offer of Judgment pursuant to Federal Rule of Civil Procedure 68 in the amount of $2,500.00, including attorney fees and costs, which offer was (again) rejected by Ms. Franklin. Over the ensuing few months, the parties engaged in several "meet and confer" discussions

regarding discovery issues, which disputes are characterized by each side as gamesmanship on the part of the other. On May 20, 2024, National Credit served on Ms. Franklin another Rule 68 Offer of Judgment, this time in the amount of $1,100.00, plus costs and fees incurred through that date. The next day, on May 21, 2024, Ms. Franklin provided the Court notice of her acceptance of the Offer of Judgment.

On June 7, 2024, Ms. Franklin filed the instant motion for assessment of attorney fees and costs. National Credit objects to Ms. Franklin's requested amount of fees because her fee application includes: (1) time entries incurred after the date National Credit made its Offer of Judgment, to wit, May 20, 2024, which are impermissible under the clear terms of the Offer; (2) several duplicative entries; (3) entries that are vague and lack specificity; (4) non-billable entries for file maintenance and "filing" documents; (5)

unreasonable time spent on recycled and templated discovery and pleadings; (6) billing for research on matters which should not require research; and (7) entries where the time spent does not support the work product produced. National Credit argues that Plaintiff's attorney fees should be further reduced based on the prior settlement offer that she rejected. In sum, National Credit argues that Plaintiff's counsel has claimed hours that are unreasonable and excessive in comparison to the ordinary result obtained in such an

action as this and should therefore be reduced by the Court. Legal Analysis I. Costs and Attorney Fees Under the FDCPA A prevailing plaintiff is entitled under the FDCPA to recover the costs of the action and "a reasonable attorney's fee as determined by the court." 15 U.S.C. § 1692k(a)(3).

Courts typically apply the lodestar method to compute the amount of a reasonable attorney fee, which is done by multiplying the attorney's reasonable hourly rate by the number of hours reasonably spent on the case. Schlacher v. Law Offs. Of Phillip J. Rotche & Assocs., P.C., 574 F.3d 852, 856 (7th Cir. 2009). The party seeking the fee award bears the burden of proving the reasonableness of the hours worked and the hourly

rates claimed. Spegon v. Catholic Bishop of Chicago, 175 F.3d 544, 550 (7th Cir. 1999) (citation omitted). Once the lodestar figure is calculated, it is presumed reasonable, but the Court may in its discretion adjust the amount "to reflect various factors including the complexity of the legal issues involved, the degree of success obtained, and the public interest advanced by the litigation." Cooper v. Retrieval-Masters Creditors Bureau, Inc., 42 F.4th 675, 682 (7th Cir. 2022) (quotation marks and citation omitted).

II. Discussion It is undisputed that, by accepting the Offer of Judgment, Plaintiff is the prevailing party and is therefore entitled to receive costs and reasonable attorney fees.

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