Lott v. Vial Fotheringham LLP

CourtDistrict Court, D. Oregon
DecidedJuly 30, 2021
Docket3:16-cv-00419
StatusUnknown

This text of Lott v. Vial Fotheringham LLP (Lott v. Vial Fotheringham LLP) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lott v. Vial Fotheringham LLP, (D. Or. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

JANICE LOTT, on behalf of herself and No. 3:16-cv-00419-HZ all others similarly situated; KANIKA CHEA, on behalf of herself and all others OPINION & ORDER similarly situated,

Plaintiffs,

v.

VIAL FOTHERINGHAM, LLP,

Defendant.

Bret Knewtson 3000 NW Stucki Pl., Ste. 230 Hillsboro, OR 97214

Mark. G. Passannante Boer & Passannante, P.S. 1001 SW Fifth Ave., Ste. 1220 Portland, OR 97204 Nicholas A. Kahl Nick Kahl, LLC 209 SW Oak St., Ste. 400 Portland, OR 97204

Attorneys for Plaintiffs

Katie Jo Johnson Jonathan M. Radmacher McGowen Grisvold, LLP 1100 SW Sixth Ave., Ste. 1600 Portland, OR 97204

Attorneys for Defendant

HERNÁNDEZ, District Judge: Plaintiffs Janice Lott and Kanika Chea (collectively “Plaintiffs”) brought claims under the Fair Debt Collection Practices Act (“FDCPA”) against Defendant Vial Fotheringham, LLP alleging that Defendant engaged in abusive, deceptive, and unfair debt collection efforts when attempting to collect overdue homeowners’ association (“HOA”) assessments. At summary judgment, the Court found that Defendant violated the FDCPA as to Plaintiffs Ms. Lott and Ms. Chea by collecting interest on attorneys’ fees at rates not expressly authorized by the HOA governing documents that created the underlying debt. ECF 43. The Court also found that Defendant lawfully charged Plaintiffs for pre-suit attorneys’ fees. The Court denied both parties’ remaining motions as to whether Defendant lawfully charged Plaintiffs for other management fees. Plaintiffs then moved to certify a class based on the interest on attorneys’ fees issue. ECF 63. The Court denied Plaintiffs’ motion. ECF 76. The Court entered a Stipulated Judgment of Dismissal on August 24, 2020. ECF 85. Plaintiffs now move for $221,576.50 in attorney’s fees and $1,239.70 in costs.1 For the reasons explained below, Plaintiffs’ motion is granted in part. Plaintiffs are awarded $172,665.15 in fees and $1,239.70 in costs. STANDARDS 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.” 15 U.S.C. § 1692k(a)(3). The Ninth Circuit has held that this language “makes an award of fees mandatory.” Camacho v. Bridgeport Fin., Inc., 523 F.3d 973, 978 (9th Cir.2008). Under a fee-shifting statute, such as the FDCPA, the “lodestar” method is used to calculate the attorney’s fee award. Staton v. Boeing Co., 327 F.3d 938, 965 (9th Cir. 2003). The court first multiplies the number of hours the prevailing party reasonably expended on the litigation times a reasonable hourly rate, in order to determine the “lodestar” amount. Id. If circumstances warrant, the court then adjusts the lodestar to account for the Kerr factors not subsumed within the initial lodestar calculation. 2 Morales v. City of San Rafael, 96

F.3d 359, 363–64 (9th Cir. 1996) (citing Kerr v. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9th Cir. 1975)). A “strong presumption” exists that the lodestar figure represents a “reasonable fee,” and therefore, it should only be enhanced or reduced in “rare and exceptional cases.” Pennsylvania v. Delaware Valley Citizens' Council for Clean Air, 478 U.S. 546, 565 (1986).

1 The requested fees include payment for hours initially requested in Plaintiffs’ Motion for Attorney’s Fees, ECF 104, and additional hours for time reasonably expended in preparing a reply to Defendant’s response to Plaintiffs’ motion. See Pl. Mot. Suppl. Att’y Fees, ECF 98. Time spent by counsel in establishing the right to a fee award is compensable. Davis v. City of San Francisco, 976 F.2d 1536, 1544 (9th Cir. 1992). 2 Factors subsumed within the lodestar include the novelty and complexity of the issues, special skill and experience of counsel, quality of the representation, results obtained, and the superior performance of counsel. D'Emanuele v. Montgomery Ward & Co., 904 F.2d 1379, 1383 (9th Cir. 1990). While it is not necessary to detail every numerical calculation, and across-the-board percentage adjustments are permissible, the court must provide “enough of an explanation to allow for meaningful review of the fee award.” Sorenson v. Mink, 239 F.3d 1140, 1146 (9th Cir. 2001). DISCUSSION I. Amount of Attorney’s Fees

A. Hours Reasonably Expended It is the fee claimant’s burden to demonstrate that the number of hours spent on the case was “reasonably necessary” to the litigation and that counsel made “a good faith effort to exclude from a fee request hours that are excessive, redundant, or otherwise unnecessary[.]” Hensley v. Eckerhart, 461 U.S. 424, 434 (1983); see also Frank Music Corp. v. Metro– Goldwyn–Mayer, Inc., 886 F.2d 1545, 1557 (9th Cir. 1989) (“Plaintiffs bear the burden of showing the time spent and that it was reasonably necessary to the successful prosecution of their [ ] claims.”). Plaintiffs seeks compensation for 99 hours of work performed by attorney Mark

Passannante, 314.3 hours of work performed by Bret Knewtson, 41.9 hours of work performed by Nick Kahl, and 38.9 hours of work performed by Young Walgenkim. Pl. Mot. Att’y Fees 2, ECF 88. Defendant objects to time spent by Plaintiff's counsel arguing that they should not be compensated for any work on the unsuccessful class certification effort and that the number of hours spent by counsel on its filings was unreasonable. Defendant also argues for lodestar reductions based on Plaintiffs’ counsel’s unreasonableness in settlement negotiations, duplication of efforts, and block billing. // i. Partial Success Defendant argues that because Plaintiffs’ motion for class certification failed, all of Plaintiffs’ counsel’s time entries after the October 2017 Summary Judgment Opinion and Order (O&O) should be eliminated. Plaintiffs’ counsel contends that they should be awarded fees for this time because it was necessary to prevailing on the improper interest claim.

A prevailing plaintiff seeking attorney fees may be compensated only for hours expended in furtherance of successful claims or claims closely related to successful claims. Hensley, 461 U.S. at 434–35. “[T]he extent of a plaintiff's success is a crucial factor in determining the proper amount of an award of attorney's fees.” Id. at 440. To determine fees in cases of partial success “[a] court must consider (1) whether ‘the plaintiff fail[ed] to prevail on claims that were unrelated to the claims on which he succeeded,’ and (2) whether ‘the plaintiff achiev[ed] a level of success that makes the hours reasonably expended a satisfactory basis for making a fee award.’” Watson v. Cty. of Riverside, 300 F.3d 1092, 1096 (9th Cir. 2002) (citations omitted). Deductions based on limited success are within the discretion of the district court. Id. (citing

Sorenson, 239 F.3d at 1147). The first step requires the court to examine whether the successful and unsuccessful claims are unrelated. Dang v. Cross, 422 F.3d 800, 813 (9th Cir.

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