Lombardo v. Trans Union, LLC

District Court, S.D. New York·Decided May 6, 2026·No. 7:20-cv-06813·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

Plaintiff, : : OPINION AND ORDER

IPMORGAN CHASE BANK, N.A., | 20.CV 6813 (VB) Defendant. : neem een eee □□□ eeen Briccetti, J.: Plaintiff Lisa Lombardo, now proceeding pro se, brought this action against defendant JPMorgan Chase Bank, N.A. (“Chase”), alleging Chase violated the Fair Credit Reporting Act (“FCRA”), 15 U.S.C, § 1681 et seq., and the Connecticut Uniform Commercial Code, and breached the terms of an automobile lease agreement, when it prematurely designated the lease as charged off on plaintiff’s credit report and subsequently repossessed the vehicle. Plaintiff and Chase settled the case for in 2024, and the Court granted Chase’s motion to enforce the settlement on March 5, 2025. (Doc. #311). From the commencement of this litigation until November 7, 2024, plaintiff was represented by interested party Schlanger Law Group, LLP (“Schlanger”). Beginning September 2, 2021, pursuant to a co-counsel agreement with Schlanger, plaintiff was also represented by Lupkin PLLC (“Lupkin”), Both Schlanger’s and Lupkin’s representation of plaintiff was terminated when the Court granted counsel’s joint motion to withdraw and fix a charging lien, in an amount to be determined, (Doc. #270).

Now pending is Schlanger’s motion to fix the amount of the charging lien at i. (Docs. ##331, 341, 345).! Schlanger also seeks an order directing Chase to pay that amount to Schlanger directly. (Id.). Plaintiff opposes Schlanger’s motion. (Doc. #351). For the reasons set forth below, the motion is GRANTED. The Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1367. BACKGROUND The Court assumes familiarity with the underlying facts and recounts only the background and procedural history relevant and necessary to resolve the instant motion. Plaintiff retained Schlanger on March 3, 2020, (Doc. #347-5 “Retainer”).” Plaintiff and Schlanger’s retainer agreement provided Schlanger “may opt to receive compensation on an hourly basis... OR [Schlanger] may opt to receive a sum equal to 30% of any amount recovered” in the litigation. (Retainer at ECF 2). The Retainer explained Schlanger “shall utilize whichever of these two options results in higher compensation” to Schlanger. (Id.). It also provided the hourly rates of partners, associates, and support staff at the firm. (Id.). In addition, the Retainer specified that, although Lombardo was “entitled to know exactly what the Attorneys’ fee will be prior to accepting any settlement offer . . . Attorneys’ fees will

come out of the settlement amount, regardless of whether or not any portion of the settlement

Schlanger filed this motion and accompanying documents in triplicate: (i) public redacted versions, (ii) sealed, partially redacted versions, and (iii) sealed, unredacted versions. For purposes of the instant motion, the Court will refer to the unredacted, sealed versions of Schlanger’s filings. (Docs. ##341—-43, 348, 361-62). 2 Schlanger contends plaintiff retained Schlanger on March 3, 2020. (Doc. #342 at 4). Plaintiff electronically signed the retainer on March 3, 2020. (Doc. #347-5 at ECF 9). However, the agreement itself is dated March 2, 2020. (Id. at ECF 8). Because the discrepancy is not significant to the instant motion, the Court will refer to March 3, 2020, as the date on which the retainer agreement was signed and executed. In addition, “ECF” refers to page numbers automatically assigned by the Court’s Electronic Case Filing system.

amount is designated for attorney’s fees.” (Id. at ECF 3). The Retainer noted Lombardo was “aware that the Attorneys’ fees paid in this matter may significantly exceed the compensation to [Lombardo].” (Id.), And the Retainer “authorize[d] [Schlanger] to retain associate counsel and co-counsel on [Lombardo’s] behalf at [Schlanger’s] discretion and without further notice.” (Id.). Finally, pursuant to the Retainer, Lombardo “grant[ed] [Schlanger] an enforceable lien for its fees, costs and disbursements . . . against the proceeds of any future settlement[.]” (Id. at ECF 4). On August 24, 2020, plaintiff brought this case against Chase, as well as Equifax Information Services, LLC (“Equifax”), Trans Union, LLC (“Trans Union”), and Experian Information Solutions, Inc. (“Experian” and together with Equifax and Trans Union, the “Credit Reporting Agency Defendants”). On August 31, 2021, Jonathan Lupkin entered an appearance for plaintiff. (Doc. #76). On September 2, 2021, Schlanger and Lupkin executed a co-counsel agreement. (Doc. #360-3). The co-counsel agreement specified Schlanger would “be the primary liaison with Ms. Lombardo.” (Id. at ECF 2). It also provided for the method of distributing fees between Schlanger and Lupkin, with 25% of fees after costs going to Schlanger, 20% going to Lupkin, and “the remainder being split pro rata according to each firm’s recorded hours.” (Id. at ECF 2— 3). Although Schlanger and Lupkin failed to disclose the co-counsel agreement to plaintiff, due to what Schlanger calls “an inadvertent clerical error” (Doc. #360 at § 36), plaintiff was made aware of Lupkin’s role as co-counsel by no later than November 30, 2021. (Doc. #360-1 at ECF 2). Early in 2022, plaintiff settled with the Credit Reporting Agency Defendants and those defendants were dismissed from the case. (Docs. ##122, 131, 146). Plaintiff settled with

Equifax for i. with Trans Union for and with Experian for i. (Doc. #342 at 6). Plaintiff and counsel split the Equifax and Trans Union settlements equally, each taking a. (id.). Plaintiff retained of the Experian settlement, and counsel received a. Thus, of the a recovered in total by plaintiff’s settlement with the Credit Reporting Agency Defendants, she kept and counsel was paid i. (id.). These settlements did not include any provisions or protections regarding how plaintiff would be taxed with respect to portions of the settlements recoverable by her counsel as attorneys’ fees. On November 28, 2022, Chase moved for summary judgment. (Doc. #164). On July 21, 2023, the Court granted in part and denied in part Chase’s motion. (Doc. #196). Thereafter, the parties engaged a retired judge to privately mediate their dispute. (Doc. #208). On January 15, 2024, plaintiff, her attorneys Daniel A. Schlanger and Stephanie Tatar,” as well as defense counsel, attended a daylong mediation session. Towards the end of the day, the mediator informed plaintiff and her counsel that Chase had made a final offer. Plaintiff confirmed her willingness to accept the offer to Mr. Schlanger, who reported plaintiff’s acceptance to the mediator. (Doc. #294 at JJ 6, 13). The mediator emailed Chase’s counsel that night, stating “I am very pleased that we were able to settle this matter.’ (Doc. #228-3). On January 17, 2024, the parties jointly filed a notice of settlement stating they had “reached a settlement” and were “in the process of finalizing the relevant settlement documents.” (Doc. #210). The following day, Mr. Schlanger emailed Chase’s counsel requesting two separate checks be issued as part of the settlement agreement—one to plaintiff for 20% of the total

Ms, Tatar has not entered an appearance for plaintiff and it is unclear whether she ever entered into a formal co-counsel agreement with Schlanger. However, Tatar participated in preparations for plaintiff’s mediation with Chase and attended the mediation. (Docs. ##280, 351 at ECF 14). Nevertheless, Schlanger has not included Tatar’s time in the lodestar totals.

settlement amount, and the other to Schlanger for the remaining 80%. Plaintiff later claimed the foregoing did not constitute a binding settlement.

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Lombardo v. Trans Union, LLC, (S.D.N.Y. 2026).

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Related

§ 1681
15 U.S.C. § 1681
§ 1331
28 U.S.C. § 1331