GLOVER v. IC SYSTEM INC

CourtDistrict Court, M.D. Georgia
DecidedJune 11, 2020
Docket5:19-cv-00103
StatusUnknown

This text of GLOVER v. IC SYSTEM INC (GLOVER v. IC SYSTEM INC) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GLOVER v. IC SYSTEM INC, (M.D. Ga. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF GEORGIA MACON DIVISION

LORRAINE GLOVER, Plaintiff, CIVIL ACTION NO. v. 5:19-cv-00103-TES I.C. SYSTEMS, INC., Defendant.

ORDER GRANTING IN PART AND DENYING IN PART

PLAINTIFF’S MOTION FOR ATTORNEYS’ FEES

In this consumer protection law case, the parties reached a settlement, and, pursuant to an “Offer of Judgment,” Defendant I.C. Systems, Inc. (“ICS”) agreed to pay Plaintiff Lorraine Glover’s reasonable attorneys’ fees and taxable costs. [Doc. 14]; [Doc. 14-1]. But the parties could not agree on the amount. And the Court certainly understands why. Although Plaintiff ultimately settled her case for $1,050.00, she has now asked the Court to award her approximately 100 times that amount1 – yes, you read that right, more than $100,000.00 – in attorneys’ fees and costs. See [Doc. 18-1, p. 19]; [Doc. 28, p. 9]. Simply put, Plaintiff offers no good reason (and there would have to be lots of really, really good reasons) why the Court should award her so much. For the reasons discussed below, the Court GRANTS in part and DENIES in part Plaintiff’s

1 To frame this in terms of percentages, Plaintiff asks for just under 10,000% of her settled-for amount. motion [Doc. 18]. BACKGROUND

To start, the Court sees this as a relatively straightforward, not complex, matter that arose when Plaintiff, an elderly woman, received a collection letter from Defendant that incorrectly listed the amount she allegedly owed Cox Communications.

On April 21, 2018, Plaintiff received a collection letter from Defendant seeking $455.13 in principal and a $113.78 collection charge. [Doc. 8-1, p. 1]. On September 23, 2018, Glover’s counsel sent Defendant a “validation demand” seeking documentation to

verify Plaintiff’s debt. [Doc. 8-2]. On October 18, 2018, Defendant verified that Plaintiff owed $455.13 principal, but lowered the amount of the collection charge from $113.78 to $96.28. [Doc. 8-3]. In response to Defendant changing the proposed collection charge in its

verification letter, Plaintiff’s attorney demanded $10,000.00, alleging Defendant violated several consumer protection laws when it lowered the proposed collection charge by $17.50, despite Plaintiff not making any payments. [Doc. 8-4, pp. 1—2]. According to

Plaintiff, “the amount due in the [initial] letter was false.” [Id., p. 1]. On January 7, 2019, Defendant countered with an offer to pay $2,000.00 to settle any claims. [Doc. 25-1]. Plaintiff rejected it. [Doc. 25-2]. Obviously banking that she would collect more than $2,000.00, Plaintiff filed suit

on March 20, 2019. [Doc. 1]. In a three-count complaint, Plaintiff claimed Defendant violated the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1692 et seq., Georgia’s Fair Business Practices Act (FBPA), O.C.G.A §§ 10-1-390 et seq., and Georgia’s

Unfair and Deceptive Practices Towards the Elderly Act (“UDPTEA”), O.C.G.A§ 10-1- 850 et seq. See [Doc. 1]. Over the course of the suit, the parties engaged in the discovery process and deposed three individuals: Plaintiff in Perry, Georgia; Defendant’s

corporate representative under Federal Rule of Civil Procedure 30(b)(6) in Minneapolis, Minnesota; and a Cox Communications corporate representative in Atlanta, Georgia. [Doc. 18-1, p. 2]. After 10 months of litigation, she settled the case for just over half of

what she was offered before suit. But, she now wants more than $100,000.00 in attorneys’ fees and costs for her efforts. DISCUSSION A. Standard for Awarding Attorneys’ Fees and Costs

Plaintiff seeks attorneys’ fees under the FDCPA, 15 U.S.C. § 1692k(a)(3), FBPA, O.C.G.A. § 10-1-399(d), and UDPTEA, O.C.G.A. § 10-1-853. [Doc. 28, p. 5]. While attorneys’ fees are available for prevailing plaintiffs under these acts, the FBPA requires

a court to “deny a recovery of attorneys' fees and expenses of litigation which are incurred after the rejection of a reasonable written offer of settlement made within 30 days of the mailing or delivery of the written demand for relief required by this Code section.” O.C.G.A. § 10-1-399(d). 2 Further, the UDPTEA only permits attorneys’ fees “if appropriate.” O.C.G.A. § 10-1-853.3 Accordingly, the Court declines to award attorneys’

fees under either Georgia statute. Regardless, the Court is not required to follow any fee-shifting statute based on the language of the parties’ settlement agreement. See Embree v. Medicraft, Inc., 752

F.App’x 697, 699 (11th Cir. Sept. 12, 2018). As mentioned earlier, on January 15, 2020, Plaintiff accepted Defendant’s Offer of Judgment for $1,050.00, plus reasonable attorneys’ fees and costs. [Doc. 14]; [Doc. 14-1]. Based on the plain language of their

agreement, the parties agreed that the Court would determine the attorneys’ fees and taxable costs if they could not agree on a fair amount. The settlement agreement did not provide any specific method for determining attorneys' fees and costs or restrict the Court from performing any particular analysis.4 As this case concerns debt collections,

2 At the time of receiving the initial pre-suit settlement offer of $2,000.00, Plaintiff’s attorney, Clifford Carlson, had billed 3.3 hours and spent $10.06 on postage and mailing. [Doc. 18-3, pp. 11, 38]. If Plaintiff would have taken this pre-suit offer, Plaintiff would have received her final settlement amount of $1050.00 over a year earlier, and Carlson would have received $950.00 for his services, or approximately $284.00 per billable hour and expenses. [Doc. 14].

3 As Plaintiff’s claim under the UDPTEA depends on a finding that Defendant violated the FBPA, the Court would likely not find awarding attorneys’ fees appropriate under the UDPTEA. See O.C.G.A. §§ 10- 1-851, 10-1-853; see also Jackson v. Premium Capital Funding, LLC, No. 1:09-CV-01392-CAM-GGB, 2009 WL 10682218, at *5 (N.D. Ga. Nov. 24, 2009), adopted by 2010 WL 11549857, at *3 (N.D. Ga. Mar. 17, 2010) (granting motion to dismiss as to plaintiffs' UDPTEA claim since they “failed to show the predicate violations of the FBPA necessary for recovery under the [UDPTEA]”).

4 Even in these circumstances, however, the Court must provide a rational basis that allows for meaningful appellate review. See Bivins v. Wrap It Up, Inc., 548 F.3d 1348, 1351 (11th Cir. 2008) (“Any reductions to the requested hours must be concisely and clearly explained to allow for appellate review; otherwise, we must remand.”). the Court will rely on the existing framework for determining attorneys’ fees under the FDCPA.

The FDCPA authorizes an award to any successful plaintiff of the costs of the action and a “reasonable attorney's fee as determined by the court.” 15 U.S.C. § 1692k(a)(3). The determination of what constitutes a reasonable fee is left to the sound

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GLOVER v. IC SYSTEM INC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glover-v-ic-system-inc-gamd-2020.