Hanrahan v. Statewide Collection, INC.

District Court, N.D. California·Decided June 14, 2021·No. 3:19-cv-00157·Unknown

Opinion

LEAH HANRAHAN, Case No. 19-cv-00157-MMC

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART PLAINTIFF'S MOTION FOR ATTORNEY'S FEES Defendant.

Before the Court is plaintiff Leah Hanrahan’s (“Hanrahan”) “Motion for Attorney’s Fees and Costs,” filed March 25, 2021. Defendant Statewide Collection, Inc. (“Statewide”) has filed opposition, to which Hanrahan has replied. Having read and considered the papers submitted in support of and in opposition to the motion, the Court rules as follows.1 BACKGROUND2 After Hanrahan “incurred a medical debt with Mad River Hospital,” her “bill” was sent to Statewide for collection, whereupon Statewide sent her a collection letter, dated January 23, 2018. (See FAC ¶¶ 6-8; see also Compl. Ex. A.) According to Hanrahan, the collection letter was “false, deceptive and misleading” (see id. ¶ 9) to the extent it (1) “threaten[ed] that if a judgment [was] obtained against [her], it w[ould] be reported to each of Equifax, TransUnion and Experian, and . . . w[ould] remain there for seven years” (see id. ¶ 16), and (2) “implie[d] that after the seven years of negative reporting is complete, 1 By order filed May 10, 2021, the Court took the matter under submission. [Statewide] w[ould] then renew the judgment resulting in it reporting for an additional seven years” (see id. ¶ 19). Based on the above, Hanrahan, on January 9, 2019, filed the instant action, asserting two Counts, titled, respectively, “Violation of the Fair Debt Collection Practices Act [‘FDCPA’], 15 USC § 1692 et seq.” and “Violation of the Rosenthal Fair Debt Collection Practices Act [‘Rosenthal Act’], California Civil Code §§ 1788.17.” By order filed December 23, 2020, the Court granted in part and denied in part Hanrahan’s Motion for Partial Summary Judgment, finding Hanrahan was entitled to summary judgment on the issue of liability under the FDCPA and Rosenthal Act but was not entitled to summary judgment on the issue of statutory damages under either Act. On February 8, 2021, Hanrahan filed a Notice of Acceptance of Offer of Judgment, whereby she accepted Statewide’s offer, made on February 1, 2021, pursuant to Rule 68 of the Federal Rules of Civil Procedure (“Rule 68 Offer”), to have judgment entered against it in the amount of $7,500. (See Doc. No. 82 (Not. of Acceptance of Offer); Doc. No. 82-1 (Rule 68 Offer).) In accordance therewith, the Court, by order issued later that same date, entered judgment against Statewide “in the amount of $7,500, exclusive of attorney’s fees and costs” and stated “fees and costs [would] be determined by the Court upon noticed motion.” (See Order, filed Feb. 8, 2021.) By the instant motion, Hanrahan seeks an award of attorney’s fees in the amount of $62,846.25,3 as well as an award of costs in the amount of $3,135.05. // 3 In her Reply, Hanrahan states she seeks attorney’s fees in the amount of $62,898.75. (See Reply at 15:1-2.) Although Statewide, pointing to the Affidavit and Supplemental Affidavit of Time and Expense submitted on her behalf, notes Hanrahan has overstated by $252.50 the total amount of attorney’s fees sought, the Court notes those same affidavits contain, as to one entry, an error understating by $200 the amount of fees incurred (see Aff. of Time & Expense at 10 (calculating $2,000 in fees for 5.5 hours expended on September 1, 2020, at an hourly rate of $400)), the net result being an overstatement in the amount of $52.50. In sum, as to fees, the amount Hanrahan I. Entitlement to Award Under the FDCPA, “any debt collector who fails to comply with its provisions is liable ‘in the case of any successful action . . . [for] the costs of the action, together with a reasonable attorney’s fee as determined by the court.’” See Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 978 (9th Cir. 2008) (quoting 15 U.S.C. § 1692k(a)(3)). “The FDCPA’s statutory language makes an award of fees mandatory.” See id. In the instant action, Statewide, in opposing Hanrahan’s motion, is “not . . . argu[ing] that [Hanrahan] should be denied all fees and costs requested,” but, rather, that the amount claimed is not reasonable; in particular, according to Statewide, such sum exceeds what was “required to vindicate [Hanrahan’s] alleged injuries.” (See Opp. at 10:18-21.)4 The Court thus turns to the issue raised by Statewide’s challenge. II. Amount of Attorney’s Fees To determine the amount of attorney’s fees to be awarded, a district court first must calculate a “lodestar” amount “by multiplying the number of hours the prevailing party reasonably expended on the litigation by a reasonable hourly rate.” See Camacho, 523 F.2d at 978 (internal citation omitted). “Although in most cases, the lodestar figure is presumptively a reasonable fee award, the district court may, if circumstances warrant, adjust the lodestar to account for other factors which are not subsumed within it.” See id. (internal citation omitted). A. Total Hours Here, Hanrahan seeks attorney’s fees for 127.95 hours of work completed by attorney Daniel Zemel (“Zemel”) and 27.45 hours of work completed by attorney Elizabeth Apostola (“Apostola”).5 4 In light thereof, the Court does not address herein Statewide’s assertion that the Court “ha[s] the authority” to “den[y] all fees and costs.” (See id. at 10:18-19; see also id. at 10:11-17.) 5 The number of hours for Zemel and Apostola are calculated using the above- referenced Affidavit and Supplemental Affidavit of Time and Expense, adjusted to reflect 1. Categorical Challenges At the outset, Statewide contends various hours for which Hanrahan seeks attorney’s fees should not, as a categorical matter, be awarded. As set forth below, the Court is not persuaded. (1) Attorney’s Fees Incurred Prior to Admission Pro Hac Vice Statewide argues no fees should be awarded for any work completed by out-of- state counsel Zemel and Apostola prior to their admission pro hac vice in the instant action on May 23, 2019, and February 4, 2021, respectively. To practice before this Court, “an attorney must be a member of the bar of this Court,” and to be eligible for such membership, “an attorney must be an active member in good standing of the State Bar of California.” See Civ. L.R. 11-1(a)-(b). “An attorney who is not a member of the bar of this Court,” however, “may apply to appear pro hac vice in a particular action in this district.” See id. 11-3(a). Although “[f]ailure . . . to properly and timely secure pro hac vice admission . . . [is] a sufficient reason to deny [an] application for attorneys’ fees,” see Idaho Sporting Cong., Inc. v. Alexander, 23 F. App’x 713, 714 (9th Cir. 2001), the Ninth Circuit has held there are two instances in which a party may recover fees for work performed by an out-of-state attorney who has not secured pro hac vice admission: (1) where “the attorney at issue would have certainly been permitted to appear pro hac vice as a matter of course had he or she applied,” or (2) where the attorney’s “conduct did not rise to the level of ‘appearing’ before the . . . court,” see Winterrowd v. Am. Gen. Annuity Ins. Co., 556 F.3d 815, 822-823 (9th Cir. 2009). Although, as noted, Statewide challenges the pre-admission hours sought for both attorneys, it only discusses the hours attributed to Apostola and, in so doing, only addresses the second of the above-referenced exceptions; in particular, according to 7:11-13), and her conceded error in attributing to Apostola, rather than Zemel, 0.4 hours spent on October 25, 2019, for a “C

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