Kohli v. Independent Recovery Resources, Inc.

CourtDistrict Court, E.D. New York
DecidedMarch 9, 2022
Docket2:17-cv-03154
StatusUnknown

This text of Kohli v. Independent Recovery Resources, Inc. (Kohli v. Independent Recovery Resources, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kohli v. Independent Recovery Resources, Inc., (E.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ---------------------------------------------------------------------------x RITIKA KOHLI, formerly known as Ritika Hira,

Plaintiff, MEMORANDUM AND ORDER

-against- 17-CV-3154 (RLM)

INDEPENDENT RECOVERY RESOURCES, INC., et al.,

Defendants. ---------------------------------------------------------------------------x ROANNE L. MANN, UNITED STATES MAGISTRATE JUDGE: In 2017, plaintiff Ritika Kohli (“plaintiff”) commenced this action against defendants Independent Recovery Resources, Inc. (“IRR”) and its Director of Operations, Anita Manghisi (“Manghisi”), along with Reproductive Specialists of New York, LLP (“RSNY”), alleging violations of the Fair Debt Collection Practices Act (“FDCPA”), the Fair Credit Reporting Act, and New York General Business Law § 349 (“GBL § 349”), as well as claims for gross negligence and breach of contract. See generally Complaint (May 24, 2017) (“Compl.”), Electronic Case Filing (“ECF”) Docket Entry (“DE”) #1. Defendant RSNY was thereafter dismissed from this case, after having successfully moved for summary judgment on all claims against it. See Order on Motions for Summary Judgment (Mar. 31, 2021) at 22, DE #118. The remaining defendants—Manghisi and IRR— subsequently entered into a settlement agreement with plaintiff, pursuant to which Manghisi was dismissed as a defendant and IRR consented to have judgment entered against it with respect to plaintiff’s FDCPA claim. See Consent Judgment (June 16, 2019) (“Consent Judgment”) at 1-2, DE #93-1.1 Plaintiff then moved for damages on this FDCPA claim and, following an evidentiary hearing, this Court awarded her $50,000.00 in actual damages for emotional distress. See Minute Entry for Evidentiary Hearing (Oct. 4, 2021) (“10/4/21

Minute Entry”), DE #137; Memorandum and Order (Nov. 29, 2021) (“Mem. and Order”) at 13, DE #141. Currently pending before this Court, on consent to proceed before the undersigned magistrate judge, is plaintiff’s request for attorney’s fees and costs related to the FDCPA claim successfully brought against IRR. See generally Motion for Attorney Fees (Jan. 4, 2022) (“Pl. Mot.”), DE #142;2 Consent to Jurisdiction by US Magistrate Judge (Apr. 8, 2021), DE #120. For the reasons explained herein, this Court grants in part and denies in part plaintiff’s motion,

and awards plaintiff $46,620.00 in attorney’s fees. BACKGROUND On October 4, 2021, this Court conducted an evidentiary hearing, via videoconference, regarding plaintiff’s actual damages under the FDCPA in connection with the settlement agreement between plaintiff and IRR. See 10/4/21 Minute Entry. During this hearing, the Court heard the testimony of plaintiff and her sister regarding the emotional distress that

plaintiff had suffered as a result of IRR’s attempts to collect money purportedly owed to RSNY

1 Further, IRR agreed that this judgment would be in the amount of $1,000.00 (i.e., the statutory maximum), and that it would not oppose plaintiff’s request for additional damages available under the FDCPA. See Consent Judgment at 2.

2 In her motion, plaintiff also requests that this Court, in its discretion, retain jurisdiction over the matter of attorney’s fees and costs for enforcement purposes. See Pl. Mot. at 2. The Court declines to do so. for fertility services received by her and her ex-husband.3 See id.; see generally Transcript of Evidentiary Hearing held on October 4, 2021 (docketed on Nov. 5, 2021), DE #140. Thereafter, on November 29, 2021, having considered the relevant testimony and evidence,

this Court issued a Memorandum and Order awarding plaintiff $50,000.00 in emotional distress damages under the FDCPA. See Mem. and Order at 13. Plaintiff now seeks attorney’s fees in connection with her successful FDCPA claim against IRR, in the amount of $210,900.00.4 See Arleo Time Records (Jan. 4, 2022) at 21, DE #142-1. Based on her submissions (as discussed infra), plaintiff apparently requests attorney’s fees only with respect to work performed by her attorney of record, Robert L. Arleo, Esq., and no one else. See id. The requested fee award is comprised of Mr. Arleo’s

proposed $475.00 hourly rate for 222 hours of work purportedly spent related to the FDCPA claim against IRR ($475.00 x 222 = $105,450.00), plus a multiplier of 100 percent of this amount. See id.; Pl. Mot. at 1. On January 4, 2022, after reviewing plaintiff’s papers and identifying several deficiencies therein, the Court instructed plaintiff to supplement her submissions and provide “documentation substantiating [her] counsel’s costs, along with a copy of [her] counsel’s

retainer agreement[.]” Scheduling Order (Jan. 4, 2022) (“1/4/22 Order”). In response, plaintiff’s counsel submitted a partially redacted copy of his retainer agreement with plaintiff, as well as a letter representing that plaintiff would no longer be seeking costs in this action.

3 Plaintiff’s emotional distress was tied to circumstances that are unique and traumatic; specifically, plaintiff’s ex- husband (with whom plaintiff was receiving fertility treatments) was abusive and violent toward her, and during one such violent episode, he stabbed and murdered her mother. See Compl. ¶¶ 31-36.

4 Plaintiff has represented to the Court that she is no longer seeking costs, given that the majority of the costs incurred in this action have been paid from the proceeds of the settlement agreement with defendant Manghisi, and that those costs remaining are de minimis. See Letter (Jan. 7, 2022), DE #143. See Letter (Jan. 7, 2022), DE #143; Partially Redacted Retainer Agreement (docketed on Jan. 7, 2022), DE #143-1. The Court thereafter required Mr. Arleo to provide the unredacted version of this retainer agreement, and to clarify certain aspects of his fee arrangement with

plaintiff. See Scheduling Order (Jan. 26, 2022) (“1/26/22 Order”); Order re [DE #]144 Affidavit/Affirmation (Feb. 1, 2022) (“2/1/22 Order”). Plaintiff’s counsel provided the unredacted retainer agreement to the Court, via email, which was then filed under seal; he also represented that, pursuant this retainer agreement, he would not take any portion of plaintiff’s $50,000.00 damages award and that his fees would consist only of those awarded by the Court’s ruling on the instant motion. See Order re [DE #]145 Letter (Feb. 1, 2022); Supplemental Affirmation in Compliance with Order to Explain Terms of Retainer Agreement

(Feb. 2, 2022) at 1, DE #146; Sealed Unredacted Retainer Agreement (Feb. 2, 2022), DE #147. DISCUSSION I. Attorney’s Fees Having successfully brought an FDCPA claim, plaintiff may recover “a reasonable attorney’s fee[.]” 15 U.S.C. §1692k(a)(3). “The Second Circuit has generally viewed the

attorney’s fees provision of the FDCPA as mandatory, awarding costs and reasonable fees as ‘a matter of course’ to prevailing plaintiffs.” Rudler v. MLA Law Offices, Ltd., 19 CV 2170 (EK)(LB), 2021 WL 4755521, at *2 (E.D.N.Y. July 1, 2021) (quoting Jacobson v. Healthcare Fin. Servs., Inc., 516 F.3d 85, 95 n.8 (2d Cir. 2008)), adopted as modified, 2021 WL 4398087 (E.D.N.Y. Sept. 27, 2021). While fee-shifting is considered mandatory under the FDCPA, the fee must nevertheless be reasonable. See id. at *2. In considering an application for an attorney’s fee, the Court must first determine the presumptively reasonable fee. See Safeco Ins. Co. of Am.

v. M.E.S., Inc., 790 F.App’x 289, 292 (2d Cir. 2019); Arbor Hill Concerned Citizens Neighborhood Ass’n v. Cty. of Albany, 522 F.3d 182, 183-84 (2d Cir. 2008) (“Arbor Hill”).

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Kohli v. Independent Recovery Resources, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kohli-v-independent-recovery-resources-inc-nyed-2022.