Hallmark v. Cohen & Slamowitz, LLP
This text of 378 F. Supp. 3d 222 (Hallmark v. Cohen & Slamowitz, LLP) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
ELIZABETH A. WOLFORD, United States District Judge
INTRODUCTION
Plaintiff Michael Hallmark ("Plaintiff") commenced this action, on behalf of himself and others similarly situated, on October 6, 2011, alleging that Cohen & Slamowitz. LLP and Midland Funding LLC d/b/a Midland Funding of Delaware, LLC (collectively, "Defendants") sought to collect a debt from Plaintiff and others in violation of the Fair Debt Collection Practices Act,
On August 14, 2017. while discovery was still pending, this Court referred this action to a mediation session during the Court's concentrated "Settlement Week." (Dkt. 352). The mediation session was held on November 8, 2017, at which time Class Counsel and Defendants' counsel negotiated a possible resolution of the matter with the assistance of an experienced federal mediator. (Dkt. 365). As a result, the parties were able to reach a settlement in principal. (Dkt. 366).
On May 4, 2018, Plaintiff filed a consent motion for preliminary approval of the class action settlement. (Dkt. 373). The Court held a preliminary fairness hearing on May 24, 2018, and preliminarily approved the class action settlement. (Dkt. 375; Dkt. 376). The Court subsequently held a final fairness hearing on November 27, 2018. (Dkt. 384). On November 30, 2018, the Court issued a Decision and Order approving the class action settlement, but reserving decision on Class Counsel's request for attorneys' fees and costs until further briefing was filed. (Dkt. 385; see also Dkt. 386 (Supplemental Order of Final Approval of Class Action Settlement)). On January 11, 2019, Cohen & Slamowitz, LLP filed a letter indicating that they "will not be submitting any affirmative opposition to the motion at this time and will defer to the Court's review and determination with respect to the request for attorney's fees and costs, subject to the negotiated cap of $ 400,000." (Dkt. 387 at 1). No opposition has in fact been filed against Class Counsel's request for attorneys' fees and costs.
The Court has reviewed Class Counsel's papers in support of their request for attorneys'
*227fees and expenses. For the foregoing reasons, the Court grants Class Counsel's unopposed request for $ 400,000.00 in reasonable attorneys' fees and costs.
DISCUSSION
I. Reasonableness of the Attorneys' Fees and Costs
"Pursuant to 15 U.S.C. § 1692k(a)(3), counsel for a prevailing party in an FDCPA action is entitled to 'the costs of the action, together with a reasonable attorneys' fee as determined by the court.' " Gonzalez v. Healthcare Recovery Mgmt. Inc. , No. 13-CV-1002,
"In awarding attorneys' fees, especially in the context of a class action, a court must 'ensure that the interests of the class members are not subordinated to the interests of ... class counsel.' " Dial Corp. v. News Corp. ,
A. Reasonable Hourly Rate
"A reasonable hourly rate is 'the rate a paying client would be willing to pay,' 'bear[ing] in mind that a reasonable paying client wishes to spend the minimum necessary to litigate the case effectively.' " McLaughlin v. IDT Energy , No. 14 CV 4107 (ENV)(RML),
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ELIZABETH A. WOLFORD, United States District Judge
INTRODUCTION
Plaintiff Michael Hallmark ("Plaintiff") commenced this action, on behalf of himself and others similarly situated, on October 6, 2011, alleging that Cohen & Slamowitz. LLP and Midland Funding LLC d/b/a Midland Funding of Delaware, LLC (collectively, "Defendants") sought to collect a debt from Plaintiff and others in violation of the Fair Debt Collection Practices Act,
On August 14, 2017. while discovery was still pending, this Court referred this action to a mediation session during the Court's concentrated "Settlement Week." (Dkt. 352). The mediation session was held on November 8, 2017, at which time Class Counsel and Defendants' counsel negotiated a possible resolution of the matter with the assistance of an experienced federal mediator. (Dkt. 365). As a result, the parties were able to reach a settlement in principal. (Dkt. 366).
On May 4, 2018, Plaintiff filed a consent motion for preliminary approval of the class action settlement. (Dkt. 373). The Court held a preliminary fairness hearing on May 24, 2018, and preliminarily approved the class action settlement. (Dkt. 375; Dkt. 376). The Court subsequently held a final fairness hearing on November 27, 2018. (Dkt. 384). On November 30, 2018, the Court issued a Decision and Order approving the class action settlement, but reserving decision on Class Counsel's request for attorneys' fees and costs until further briefing was filed. (Dkt. 385; see also Dkt. 386 (Supplemental Order of Final Approval of Class Action Settlement)). On January 11, 2019, Cohen & Slamowitz, LLP filed a letter indicating that they "will not be submitting any affirmative opposition to the motion at this time and will defer to the Court's review and determination with respect to the request for attorney's fees and costs, subject to the negotiated cap of $ 400,000." (Dkt. 387 at 1). No opposition has in fact been filed against Class Counsel's request for attorneys' fees and costs.
The Court has reviewed Class Counsel's papers in support of their request for attorneys'
*227fees and expenses. For the foregoing reasons, the Court grants Class Counsel's unopposed request for $ 400,000.00 in reasonable attorneys' fees and costs.
DISCUSSION
I. Reasonableness of the Attorneys' Fees and Costs
"Pursuant to 15 U.S.C. § 1692k(a)(3), counsel for a prevailing party in an FDCPA action is entitled to 'the costs of the action, together with a reasonable attorneys' fee as determined by the court.' " Gonzalez v. Healthcare Recovery Mgmt. Inc. , No. 13-CV-1002,
"In awarding attorneys' fees, especially in the context of a class action, a court must 'ensure that the interests of the class members are not subordinated to the interests of ... class counsel.' " Dial Corp. v. News Corp. ,
A. Reasonable Hourly Rate
"A reasonable hourly rate is 'the rate a paying client would be willing to pay,' 'bear[ing] in mind that a reasonable paying client wishes to spend the minimum necessary to litigate the case effectively.' " McLaughlin v. IDT Energy , No. 14 CV 4107 (ENV)(RML),
However, courts need not strictly adhere to the forum rule in all cases. Instead, reasonable attorney fee rates may vary "depending on the type of case, the nature of the litigation, the size of the firm, and the expertise of its attorneys." Kindle v. Dejana ,
Class Counsel requests a total award of attorneys' fees and costs in the amount of *228$ 400,000.00. (Dkt. 382 at 15). Although Class Counsel's calculated attorneys' fees and costs amount to $ 396,672.50 and $ 22,187.41, respectively, this total value exceeds the "agreed-upon amount of $ 400,000" (Dkt. 382-1 at ¶¶ 47-48), and thus, only $ 400,000.00 is sought on this motion (Dkt. 382 at 26 ("Plaintiffs' attorneys agreed to cap their fees and costs to facilitate settlement and guarantee a meaningful recovery for the class members.")). Class Counsel's calculations utilize certain hourly fee rates that are greater than those usually applied by courts in this District when determining the reasonableness of a fee award in an FDCPA case. For example, Mr. Brian L. Bromberg, Esq., of the Bromberg Law Office, P.C., requests that this Court apply a $ 375 per hour rate to his billable hours. (Dkt. 382-1 at ¶ 34). Mr. Bromberg also requests that the Court apply a $ 300 per hour rate to the billable hours accrued by Mr. Michael N. Litrownik, Esq., and Mr. Jonathan R. Miller, Esq., while they worked on this case as associate attorneys with his law office. (Id. at ¶¶ 39-40). Mr. Litrownik also submitted an attorney declaration requesting that the Court apply a $ 300 per hour rate to the billable hours he accumulated while employed by Mr. Bromberg's law practice. (Dkt. 382-7 at ¶ 16).
Mr. Miller has submitted a separate set of contemporaneous time records associated with his work on this matter after leaving Mr. Bromberg's law office in 2017, to start his own practice at the Law Office of Jonathan R. Miller, PLLC d/b/a Salem Community Law Office, in Winston-Salem, North Carolina. (Dkt. 382-3 at ¶¶ 11-12, 33; Dkt. 382-6; see Dkt. 382-1 at ¶ 40 ("Mr. Miller is also submitting a separate declaration and records for the time he worked on this case after he left my office.")). Mr. Miller requests that the Court apply a $ 300 per hour rate to the billable hours accumulated after his departure from Mr. Bromberg's law practice. (Dkt. 382-3 at ¶ 19).
Mr. Kenneth R. Hiller, Esq., of the Law Offices of Kenneth Hiller, submits an attorney declaration acknowledging that he "generally charge[s] $ 350.00 per hour in cases [he] handle[s] in consumer cases or other litigation where a Court does not determine [his] fee," and that "[c]ourts in this district have awarded [him] $ 215.00 per hour in attorneys fees in routine FDCPA cases in which the [d]efendant has defaulted." (Dkt. 382-9 at ¶¶ 23-24). Mr. Hiller states that "[t]his case is much more complex, involving the FDCPA, Bankruptcy Law, and Class Action law," and was "fiercely opposed by capable counsel." (Id. at ¶ 25). As such, Mr. Hiller requests that the Court apply a $ 350 per hour rate for his billable hours in this case for the same reasons this Court set forth in its recent decision in Godson v. Eltman, Eltman, & Cooper, P.C. ,
Lastly, Mr. Seth J. Andrews, Esq., of the Law Offices of Kenneth Hiller, also submits an attorney declaration requesting that the Court apply a $ 300 per hour rate to the billable hours accrued by him during his work on this case. (See Dkt. 382-11 at ¶¶ 21-22). Mr. Andrews states that this is the amount he generally charges "in consumer cases or other litigation where a Court does not determine [his] fee" (id. at ¶ 13), and that a rate of $ 300 per hour is warranted in this case "[g]iven [his] years of legal experience, the difficulty and complexity of this case, [and] the fact that competent class action counsel for consumer cases other than the undersigned, does not exist" in Western New York (id. at ¶ 16). Mr. Andrews notes that this Court previously applied a $ 250 per hour rate in awarding him attorneys' fees in Godson . (Id. at ¶ 20). However, he contends that a $ 300 per hour rate is appropriate in this *229case because his "attorney declaration was inadvertently omitted for submission" in Godson , and his experience is commensurate with Mr. Miller, who was awarded an hourly rate of $ 300 in Godson . (Id. at ¶¶ 20-21).
A review of recent FDCPA cases decided in this District suggests that a reasonable hourly rate for attorneys' fees ranges from about $ 200 to $ 300 per hour. See Eades v. Kennedy, PC. Law Offices ,
Similar to the FDCPA class action involved in Godson , the Court agrees that the instant matter is far more complex than the FDCPA default judgment actions commonly addressed by courts in this District. Cf. Eades ,
*230The hourly rates requested in this case are almost the same as those awarded in Godson , which involved the same plaintiffs' attorneys. In Godson , the Court granted a fee award for Mr. Litrownik's and Mr. Andrews' billable hours at a rate of $ 250 per hour because neither attorney had submitted attorney declarations on their own behalf.
B. Reasonable Hours Billed
"The second step of the lodestar analysis is the determination of the 'reasonable number of hours required by the case.' " Wat Bey v. City of New York , No. 01 CIV. 09406 (AJN),
The time records filed along with Class Counsel's final submission to this Court "are both contemporaneous and provide sufficient detail." McLaughlin ,
*231Jin v. Pac. Buffet House, Inc. , No. 06-CV-579 (VVP),
While this case never reached the trial stage unlike some of the cases cited above, contentious discovery continued over several years, including motion practice and numerous conferences and correspondence. (See Dkt. 382 at 12, 26). Class Counsel litigated class action issues, engaged in settlement discussions, and sparred with highly qualified defense counsel over a period of about seven years. Furthermore, Defendants have not objected to any aspect of Class Counsel's fee request. Accordingly, the billable hours identified by Class Counsel are reasonable under these circumstances.
Based upon the rates discussed above and the attorney hours identified by Class Counsel, the adjusted lodestar calculations result in the following attorneys' fee figures:
(A) Brian L. Bromberg - $149,662.50 (B) Kenneth R. Hiller - $38,080.00 (C) Jonathan R. Miller and Michael N. Litrownik (combined Bromberg hours) - $185,100.00 (D) Jonathan R. Miller (post-2017) - $11,700.00 (E) Seth J. Andrews - $12,270.00 Total: $397,242.501
[Editor's Note: The preceding image contains the reference for footnote1 ].
C. Reasonableness Under the Goldberger Factors
"The final step in this analysis is to determine whether the fee award calculated above is reasonable under the Goldberger factors."
*232McLaughlin ,
1. Time and Labor Expended by Counsel
Class Counsel have dedicated over one thousand hours to the success of the instant class action. (See Dkt. 382-1 at ¶¶ 41-42; Dkt. 382-2; Dkt. 382-3 at ¶ 35; Dkt. 382-6; Dkt. 382-9 at ¶ 33; Dkt. 382-10; Dkt. 382-11 at ¶ 22; Dkt. 382-12). Over the course of this matter's seven-and-a-half-year lifespan, Class Counsel engaged in several years of discovery and related motion practice, including various conferences and court appearances, and participated in other court proceedings, such as mediation sessions, settlement negotiations, and motion hearings. See Semon v. Swenson , No. 5:10-CV-00143-CR,
2. Magnitude and Complexities of the Litigation
"In evaluating the second Goldberger factor, '[t]he size and difficulty of the issues in a case are significant factors to be considered....' " Hall v. ProSource Techs., LLC , No. 14-CV-2502 (SIL),
3. The Risk of the Litigation
"Risk should be considered 'as of when the case is filed.' " In re Colgate-Palmolive Co. ERISA Litig. ,
As Plaintiff points out, Defendants vehemently denied any wrongdoing in this action and raised several affirmative defenses *233by which they sought to avoid liability. (See Dkt. 382 at 12). Furthermore, even if Plaintiff had established liability against Defendants, there was no guarantee that the statutory damages award would be equivalent to the $ 400,000 settlement reached in this case. See Savino v. Comput. Credit, Inc. ,
Cohen & Slamowitz, LLP took the position that its net worth was "de mini[m]is ." (Dkt. 382 at 13). Under the FDCPA, class action damages are capped at $ 500,000 or 1% of the debt collector's net worth. 15 U.S.C. § 1692k(a)(2)(B). If Cohen & Slamowitz, LLP had demonstrated that its net worth was relatively small, there is a significant possibility that the class recovery would have been smaller than the settlement fund approved in this case. Indeed, Plaintiff points out that the determination of net worth would have been a complicated issue involving the presentation of expert testimony. (Dkt. 382 at 11). Accordingly, the risk of a lower recovery or even no recovery at all was present in this matter.
"[T]he attorneys' willingness to endure for many years the risk that their extraordinary efforts would go uncompensated" should be rewarded now that a substantial settlement has been reached and approved. In re Payment Card Interchange Fee & Merch. Disc. Antitrust Litig. ,
4. The Quality of the Representation
"Courts have consistently recognized that the result achieved is a major factor to be considered in making a fee award and in assessing the quality of the representation." Fleisher v. Phoenix Life Ins. Co. , No. 11-CV-8405 (CM),
As discussed above, Class Counsel are eminently qualified and experienced to handle the type of litigation at issue in this case. Mr. Bromberg has accumulated many years of experience litigating consumer class actions, including matters involving the FDCPA. (Dkt. 382-1 at ¶¶ 19-20). In addition, Mr. Hiller's law firm "has handled approximately 800 cases on behalf [of] consumers in the Western District of New York" since 2005, many of which include the FDCPA. (Dkt. 382-9 at ¶ 16). Mr. Hiller has "personally handled the litigation in a large number of these matters." (Id. ). Mr. Miller, Mr. Litrownik, and Mr. Andrews have likewise accrued significant experience in litigating consumer protection and class action issues and advising *234clients on the same. (See Dkt. 382-3 at ¶¶ 15, 17; Dkt. 382-7 at ¶¶ 11-15; Dkt. 382-11 at ¶¶ 11-12, 14).
The docket reflects that Class Counsel and defense counsel zealously advocated on behalf of their respective clients over a period of more than seven years in what was a vigorously contested action. Considering the favorable result reached on behalf of the Class, it is obvious that the members of the Class benefited from counsel proficient in consumer protection litigation. See Sykes v. Harris , No. 09 CIV. 8486 (DC),
5. The Requested Fee in Relation to the Settlement
Although the requested fee award is about twice as large as the settlement fund, the fee award does not influence the amount the Class received as a result of the settlement. In other words, the Class would not receive a greater recovery if the fee award was reduced.
Moreover, the Second Circuit has affirmed a district court's approval of a class action settlement where the attorneys' fee award almost equated the recovery set aside in a multi-million-dollar settlement fund. See Torres v. Gristede's Operating Corp. ,
Therefore, while the fifth Goldberger factor does not supply much, if any, support for the approval of the attorneys' fee award, this factor is not dispositive where the other Goldberger factors weigh in favor of approving the fee award. See Raniere v. Citigroup Inc. ,
*2356. Public Policy Considerations
"Finally, '[w]hen determining whether a fee award is reasonable, courts consider the social and economic value of the class action, and the need to encourage experienced and able counsel to undertake such litigation.' " Lizondro-Garcia v. Kefi LLC , No. 12 Civ. 1906 (HBP),
D. Reasonable Costs
"In addition to reasonable attorney's fees, counsel for a prevailing party in an FDCPA action is entitled to an award of the costs of the action." Nicaisse v. Stephens & Michaels Assocs., Inc. , No. CV 14-1570 (JS)(GRB),
Class Counsel identifies a total of $ 22,187.41 in costs incurred while litigating this matter. (Dkt. 382 at 24). These costs include expenditures dealing with postage, expert fees, service of subpoenas, transcript costs, travel, lodging, court filing fees and service of process costs, and research expenses through litigation support services, such as the Court's Public Access to Court Electronic Records ("PACER") system. (Dkt. 382-1 at ¶ 47; Dkt. 382-2 at 23; Dkt. 382-6 at 5; Dkt. 382-9 at ¶ 34); see Bhungalia Family, LLC v. Agarwal ,
II. The Court Grants Class Counsel's Unopposed Request for an Award of $ 400,000 in Attorneys' Fees and Costs
Although the amount of reasonably recoverable attorneys' fees and costs is approximately $ 419,429.91, Class Counsel "agreed to cap their fees and costs [at $ 400,000] to facilitate settlement and guarantee a meaningful recovery for the class members." (Dkt. 382 at 26). Defendants have not opposed an award of reasonable fees and costs up to the agreed-upon amount of $ 400,000. (See Dkt. 387). Furthermore, Class Counsel does not request an award above this $ 400,000 figure. (Dkt. 382 at 15). Because the Court finds that Class Counsel has accrued reasonable attorneys' fees and costs in the amount of $ 419,429.91, the lesser agreed-upon amount of $ 400,000 is also reasonable in this case.
Therefore, the Court grants Class Counsel's motion for attorneys' fees and costs and approves $ 400,000 as an appropriate award for attorneys' fees and costs in this matter.
CONCLUSION
For the reasons set forth above, Plaintiff's motion for attorneys' fees and costs is granted. The Court awards to Class Counsel, attorneys' fees, costs, and expenses in the amount of $ 400,000.00, after reviewing Class Counsel's declarations for fees submitted to the Court. Defendants are ordered to pay this award to Class Counsel, by payment to the "Bromberg Law Office, P.C., as attorney," within 30 days of the date of this Order.
SO ORDERED.
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