Mann v. Acclaim Financial Services, Inc.

348 F. Supp. 2d 923, 2004 U.S. Dist. LEXIS 25434, 2004 WL 2937218
CourtDistrict Court, S.D. Ohio
DecidedNovember 10, 2004
Docket2:02-cv-00644
StatusPublished
Cited by11 cases

This text of 348 F. Supp. 2d 923 (Mann v. Acclaim Financial Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mann v. Acclaim Financial Services, Inc., 348 F. Supp. 2d 923, 2004 U.S. Dist. LEXIS 25434, 2004 WL 2937218 (S.D. Ohio 2004).

Opinion

ORDER

KING, United States Magistrate Judge.

Plaintiff brings this action against Acclaim Financial Services, Inc., (hereinafter “Acclaim”), alleging violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., (hereinafter “FDCPA”) and Ohio’s Consumer Sales Practices Act, O.R.C. § 1345.01 et seq., (hereinafter “OCSPA”). With the consent of the parties, 28 U.S.C. § 636(c), this matter is before the Court on class Plaintiffs application for statutory damages under the FDCPA and OCSPA (Doc. No. 65) and Plaintiffs motion for attorney fees and expenses. (Doc. No. 66).

I. Background

Plaintiff alleges that Acclaim violated both the FDCPA and the OCSPA when it sent a written communication to Plaintiff which demanded payment of a debt for utility services allegedly owed by Plaintiff to an entity known as “The Energy Cooperative.” Amended Complaint; at ¶¶ 3, 5. Plaintiff argues that this letter contained deceptive language that overshadowed the rights and obligations established by 15 U.S.C. § 1692g(a), as well as various provisions of Ohio law (hereinafter “the overshadowing claim”). On April 29, 2003, this Court certified a class of plaintiffs under Fed.R.Civ.P. 26(b)(2) on the overshadowing claim. Opinion and Order (April 29, 2003) (Doc. No. 40). The amended complaint also asserted two individual claims alleging that Acclaim failed to note that Plaintiff disputed the debt when it reported the account to the credit reporting agency and that Acclaim continued to engage in debt collection activity by reporting the debt to a credit reporting agency without validating the debt (hereinafter “the § 1692g(b), § 1692e(5), and § 1692e(8) claims”). Defendant argued that such conduct resulted from a bona fide error and that it maintained procedures reasonably adapted to avoid such errors.

On January 13, 2004, this Court granted summary judgment to Plaintiff on the overshadowing claim under the FDCPA and granted summary judgment to Defendant on the § 1692g(b), § 1692e(5), and § 1692e(8) claims. This Court denied both motions with respect to the claims brought under the OCSPA and set all remaining matters for trial. Opinion and Order (January 13, 2004) (Doc. No. 53).

In lieu of trial, the parties entered into a stipulation by which the parties agreed that this Court could enter class-wide declaratory relief on the overshadowing claim, that Plaintiff is entitled to statutory *926 damages under both state and federal law, but not to actual damages, and that Plaintiff could apply to this Court for an award of attorney fees and expenses. (Doc. No. 61).

II. Plaintiffs Application for Statutory Damages Under the FDCPA and OCSPA

The parties agree that Plaintiff is entitled to statutory damages. (Doc. No. 61). The maximum amount of statutory damages that may be awarded under the FDCPA is $1000 per proceeding. 1 15 U.S.C. § 1692k(a)(2)(A). See Wright v. Finance Service of Norwalk, Inc., 22 F.3d 647, 651 (6th Cir.1994). Only a single violation need be shown to recover under the FDCPA. Cirkot v. Diversified Systems, 839 F.Supp. 941 (D.Conn.1993). Under the OCSPA, statutory damages are limited to $200 per violation. 2 O.R.C. § 1345.09(B).

The FDCPA sets out a number of factors to be considered by the Court in determining the amount of statutory damages, including “the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional.... ” 15 U.S.C. § 1692k(b)(l). In this case, Acclaim admits that it mailed at least 1,000 letters to consumer debtors which contained overshadowing language violative of the FDCPA. (Donaldson Depo., p. 41). Plaintiff succeeded on summary judgment with regard to her class-wide overshadowing claim and, through stipulation, it was agreed that this Court could enter class-wide declaratory relief in favor of Plaintiff. Because Plaintiff prevailed on these claims, this Court concludes that Plaintiff is entitled to the maximum statutory award, i.e., $1,000 under the FDCPA and $200 under the OCSPA.

III. Plaintiffs Motion for Costs and Attorney Fees

Plaintiff requests that this Court award Plaintiffs counsel the sum of $30,200 in attorney’s fees and $970.05 in expenses.

A. Attorney Fees

In the case of a successful action against a debt collector under the FDCPA, the debt collector’s liability includes the costs of the action, together with a reasonable attorney’s fee as determined by the court. 15 U.S.C.A. § 1692k(a)(3). The award of attorney’s fees is not a special or discretionary remedy; instead, the award *927 of attorney’s fees is intended to encourage consumers to act as “private attorneys general” to enforce the FDCPA. Johnson v. Eaton, 80 F.3d 148 (5th Cir.1996); Baker v. G.C. Services Corp., 677 F.2d 775, 780 (9th Cir.1982). An attorney’s fee based on fair market rates is appropriate in order to further this Congressional intent. Tolentino v. Friedman, 46 F.3d 645, 652 (7th Cir.1995) (“Paying counsel in FDCPA cases at rates lower than those they can obtain in the marketplace is inconsistent with the congressional desire to enforce the FDCPA through private actions, and therefore misapplies the law.”).

The United States Court of Appeals for the Sixth Circuit has cautioned, however, that counsel for the successful plaintiff in an FDCPA action should not be compensated for time which represents “economic waste.” Lee v. Thomas & Thomas, 109 F.3d 802 (6th Cir.1997). “[A]ble counsel should aspire to achieve their clients’ objectives economically ..., and counsel should not expect to reap financial rewards for prolonging litigation unnecessarily.” Id at .807.

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Bluebook (online)
348 F. Supp. 2d 923, 2004 U.S. Dist. LEXIS 25434, 2004 WL 2937218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mann-v-acclaim-financial-services-inc-ohsd-2004.