Hall v. Harleysville Insurance

943 F. Supp. 536, 1996 U.S. Dist. LEXIS 15893
CourtDistrict Court, E.D. Pennsylvania
DecidedOctober 24, 1996
Docket2:94-cv-06656
StatusPublished
Cited by4 cases

This text of 943 F. Supp. 536 (Hall v. Harleysville Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Harleysville Insurance, 943 F. Supp. 536, 1996 U.S. Dist. LEXIS 15893 (E.D. Pa. 1996).

Opinion

MEMORANDUM

JOYNER, District Judge.

Before the Court are Plaintiffs’ Petition and Supplemental Petition for Attorney’s Fees pursuant to the Fair Credit Reporting Act, 15 U.S.C. § 1681n and 1681o. For the reasons that follow, we award Plaintiffs $87,-821.48 of the $114,524.23 in fees and costs that they request.

BACKGROUND

We have previously recited the events that gave rise to this action, see Hall v. Harleys-ville Ins. Co., 896 F.Supp. 478 (E.D.Pa.1995), so we very briefly summarize them here. Plaintiff Thomas Hall filed a claim for workers’ compensation benefits with Defendant Harleysville 1 in 1992. Plaintiffs allege that, as part of its claims investigation, Harleys-ville requested Plaintiffs’ credit reports from the detective agency Loss Prevention Consultants, Inc., (LCPI), paid for these reports upon receipt, and then forwarded them to its attorneys for defense of Mr. Hall’s claims. As a result, Plaintiffs instituted this action against Harleysville for willful and negligent noncompliance with the Fair Credit Reporting Act and for an invasion of privacy under Pennsylvania common law. Plaintiffs also named LCPI, its principals, John Ciaccio and Philip A. Olshevski, and its affiliated company, COD Associates, Inc., as Co-Defendants (collectively the “Detective Defendants”).

After significant pre-trial motion practice, Plaintiffs reached a confidential settlement with Detective Defendants in January 1996. Plaintiffs’ case against Harleysville was called to trial on May 13, 1996, but with the aid of the Court the parties settled that day. Plaintiffs and Harleysville agreed that the financial terms of their settlement would also remain confidential, and that attorney’s fees would be determined by this Court. , Plaintiffs have submitted petitions claiming total fees and expenses incurred in this litigation in the amount of $114,524.23. We now address Harleysville’s numerous objections to this figure.

DISCUSSION

/. PLAINTIFFS’ ELIGIBILITY FOR FEES AND COSTS UNDER THE STATUTE

The Fair Credit Reporting Act (FCRA) provides in relevant part that:

Any ... user of information which willfully fails to comply with any requirement im *540 posed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of ... (3) in the ease of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the Court.

15 U.S.C. § 1681n. 2 Harleysville does not dispute that the language “is liable” entitles Plaintiffs as a matter of right to attorney’s fees because their action was “successful” within the meaning of the statute. 3 Rather, Harleysville argues that Plaintiffs’ petitions for fees and costs should be denied, or in the alternative significantly reduced, because the evidence does not support the award that Plaintiffs request.

II. REASONABLENESS OF FEES AND COSTS CLAIMED BY PLAINTIFFS

The Third Circuit has clearly articulated the legal principles that govern our disposition of Plaintiffs’ petitions. As the party seeking attorney’s fees, Plaintiffs have “the burden to prove that [their] request for attorney’s fees is reasonable.” Rode v. Dellarciprete, 892 F.2d 1177, 1183 (3d Cir.1990). Plaintiffs “must ‘submit evidence supporting the hours worked and rates claimed’” to meet this burden. Id. (citing Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 1939, 76 L.Ed.2d 40 (1983)). Harleysville then has “the burden to challenge, by affidavit or brief with sufficient specificity to give fee applicants notice, the reasonableness of the requested fee.” Rode, 892 F.2d at 1183 (citing Bell v. United Princeton Properties, Inc., 884 F.2d 713 (3d Cir.1989)). We have considerable discretion to fix the fee amount in the light of these objections, but may not make reductions on our own. Bell, 884 F.2d at 721.

A THE LODESTAR CALCULATION

The parties agree that our analysis begins with the so-called “lodestar” formula. The Supreme Court has held that “[t]he most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.” Hensley, 461 U.S. at 433, 103 S.Ct. at 1939. The product of this calculation is the lodestar, and it “is strongly presumed to yield a reasonable fee.” Washington v. Philadelphia County Court of Common Pleas, 89 F.3d 1031 (3d Cir.1996) (citing City of Burlington v. Dague, 505 U.S. 557, 112 S.Ct. 2638, 120 L.Ed.2d 449 (1992)).

Plaintiffs claim a lodestar in the amount of $96,519.00 for fees incurred through August 6, 1996. 4 Harleysville vigorously contests this figure, however, and argues that Plaintiffs have failed to meet their burden of establishing either element of the lodestar formula.

1. Reasonable Rate

In general, the rule is that a reasonable hourly rate is calculated according to the prevailing market rates in the community. Washington, 89 F.3d at 1035 (citing Blum v. Stenson, 465 U.S. 886, 895 n. 11, 104 S.Ct. 1541, 1547 n. 11, 79 L.Ed.2d 891 (1984)); see also Student P.I.R.G. v. AT & T Bell Laboratories, 842 F.2d 1436 (3d Cir.1988) (adopting this rule). As the Court explained in Blum,

[t]o inform and assist the court in the exercise of its discretion, the burden is on the fee applicant to produce satisfactory evidence — in addition to the attorney’s own affidavits — that the requested rates are in line with those prevailing in the community *541 for similar services by lawyers of reasonably comparable skill.

Id.

Plaintiffs submit that two attorneys, a legal assistant, a law student, and several paralegals billed time to this case. They' request hourly rates of $190.00 for Cary Flit-ter, (“Flitter”), a partner in the Montgomery County, Pa.

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943 F. Supp. 536, 1996 U.S. Dist. LEXIS 15893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-harleysville-insurance-paed-1996.