McPhaul v. Insight Management Partners, LLC

CourtDistrict Court, W.D. New York
DecidedFebruary 23, 2022
Docket1:19-cv-01392
StatusUnknown

This text of McPhaul v. Insight Management Partners, LLC (McPhaul v. Insight Management Partners, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McPhaul v. Insight Management Partners, LLC, (W.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK PENNY McPHAUL, LAWRENCE — ) KELSO, and CAMERON WILSON, ) ) Plaintiffs, ) ) Vv. ) Case No. 1:19-cvy-1392 ) INSIGHT MANAGEMENT PARTNERS, _ ) LLC, ) ) Defendant. ) ORDER ON PENNY McPHAUL AND CAMERON WILSON’S MOTIONS FOR ATTORNEY FEES AND COSTS (Does, 19, 25) Plaintiffs Penny McPhaul, Lawrence Kelso, and Cameron Wilson sued Defendant Insight Management Partners, LLC in October 2019, alleging violations of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. (Doc. 1.) Plaintiffs Ms. Wilson and Ms. McPhaul accepted Rule 68 offers of judgment (see Docs. 15, 22), and have moved for attorney’s fees and costs. (Docs. 19, 25.) The exact amount of fees and costs owed to Ms. Wilson and Ms. McPhaul is now at issue. Analysis As a preliminary matter, the court notes that Defendant has not filed a response to Ms. MePhaul’s Motion for Attorney Fees. (Doc. 25.) Although the time for filing such a response has passed, Ms. McPhaul’s motion adopts the legal arguments and support set forth in Ms. Wilson’s Motion for Attorney Fees, to which Defendant has responded. (See id. at 1; Doc. 27.) □ Accordingly, the court treats Defendant’s response in opposition to Ms. Wilson’s Motion for Attorney Fees as a response to Ms. McPhaul’s nearly identical motion.

The terms of the judgment fer both Ms. McPhaul and Ms. Wilson provide for “TrJeasonable attorney’s fees and taxable costs in connection with the action ... in and among as agreed by counsel for the parties, or, if they are unable to agree, as determined by the Court upon motion.” (Doc. 15-1 at 2.) The FDCPA awards successful plaintiffs with “the costs of the action, together with a reasonable attorney’s fee as determined by the court.” 15 U.S.C. § 1692k(a)(3). Plaintiffs’ counsel originally sought an award of $3,236 for time charges and $460 for costs (filing fees and service expenses) in Ms. Wilson’s case only. (Doc. 19-2.) Because there were three Plaintiffs, most charges reflected work in common on all three cases. Charges related only to the other two Plaintiffs’ cases were not included. When Ms. McPhaul also settled her case, Plaintiffs’ counsel added $317 in time charges related to her case only. The time charges do not include time spent specifically on Lawrence Kelso’s case—the remaining Plaintiff who has not settled. The total claim for attorney’s fees is $3,553 pius undisputed costs of $400 (filing fee) and $60 (cost of service). To these the court adds the additional costs of $1,080 for the current motion practice over attorney’s fees. (Doc. 28 at 12.) These additional fees bring the total claim for attorney’s fees to $5,093. Defendant makes five arguments in opposition to the motions for attorney fees. (Doc. 27.) First, Defendant argues Attorney Hilton’s $300 per hour billing rate is unreasonable because he has only been practicing law for five years. (/d. J 6.} Second, Defendant argues that Ms. Wilson’s attorney’s fees should be prorated by one-third to account for the split time spent on each of the three Plaintiffs’ cases. dd. {9 4, 15.) Third, Defendant seeks to exclude fees incurred for intraoffice communications and clerical tasks. Ud. □□ 10-11.) Fourth, Defendant argues Plaintiffs’ counsel should not be awarded fees for work connected to the Motion to

Compel, which was denied for failure to follow the local rules. (/d. 912.) Last, Defendant argues Plaintiffs’ counsel should not be awarded “fees for fighting over his fees.” (/d. 13.) In response, Plaintiffs argue the $300 per hour billing rate is reasonable, citing prior findings of magistrate and district judges in the Western District of New York to this effect. (Doc. 28 at 3-4.) Further, Plaintiffs contend that Defendant is estopped from contesting Plaintiffs’ counsel’s rates because Defendant failed to respond to Plaintiffs’ Motion to Compel requesting admissions of reasonable billing rates for attorneys and staff. (7d. at 2 (citing Docs. 12, 12-1, and 12-12),) Plaintiffs also argue that prorating attorney’s fees among Plaintiffs is illogical, and that Defendant’s objections to time entries are not justified, (Doc, 28 at 2, 6-7.) Finally, Plaintiffs contend that Defendant owes attorney’s fees for time spent litigating fees. (id. at 8-9.) The court addresses each of these arguments below in the context of the applicable standard for calculating a reasonable fee. L Calculating Reasonable Legal Fees Under the Fair Debt Collection Practices Act The plain language of the FDCPA authorizes an award of reasonable attorney’s fees and costs as determined by the court. See 15 U.S.C. § 1692k(a)(3); Jacobson v. Healthcare Fin. Serys., Ine., 516 F.3d 85, 95 (2d Cir. 2008) (“The FDCPA provides for fee-shifting as a matter of course fo successful plaintiffs ... .”); Woods v. Sieger, Ross & Aguire, LLC, No. 11 Civ. 5698 (JFK), 2012 WL 1811628, at *5 (S.D.N.Y. May 18, 2012) (awarding reasonable fees and costs for a successful FDCPA claim). Courts in the Second Circuit charged with calculating reasonable attorney’s fees for FDCPA actions will consider two methodologies in tandem—the “lodestar approach” and the 12-factor test set forth in Arbor Hill Concerned Citizens Neighborhood Association y, County of Albany, 522 F.3d 182 (2d Cir. 2008). See e.g., De La Paz v. Rubin & Rothman, LLC, No. 11 Civ. 9625(ER), 2013 WL 6184425, at *3 (S.D.N.Y. Nov. 25, 2013)

(adopting the lodestar methodology and the factors set forth in Arbor Hill); Douyon v. NY Med. Health Care, P.C., 49 F. Supp. 3d 328, 336-37 (E.D.N.Y. 2014) (same). Generally, the “lodestar” creates a presumptively reasonable fee, guided by the Arbor Hill factors. See Azzara y. Nat’l Credit Adjusters, LLC, No. 1:16-cv-01213, 2017 WL 2628875, at *3-4 (N.D.N.Y. June 19, 2017). Thus there is a “strong presumption” that the lodestar figure is reasonable, but this presumption “may be overcome in those rare circumstances in which the lodestar does not adequately take into account a factor that may be properly considered in determining a reasonable fee.” Ceglia v. Zuckerberg, No. 10-CV-00569A(P), 2012 WL 503810, at *4 n, 6 (W.D.N.Y. Feb. 14, 2012) (citing Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542, 553— 54 (2010)). The “lodestar approach” multiples the number of hours spent by attorneys on the case by the reasonable hourly rate for the time of the attorneys, with the ultimate goal being “to compensate the attorney for the reasonable value of services benefiting the unrepresented claimant.” Lindy Bros. Builders, Inc. of Phila. v. Am. Radiator & Standard Sanitary Corp., 487 F.2d 161, 166-67 (3d Cir. 1973). The lodestar approach “looks to ‘the prevailing market rates in the relevant community’ .. . [to] produce[] an award that roughly approximates the fee that the prevailing attorney would have received if he or she had been representing a paying client who was billed by the hour in a comparable case.” Perdue, 559 at 551 (citing Blum vy. Stenson, 465 U.S. 886, 895 (1984)).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jacobson v. Healthcare Financial Services, Inc.
516 F.3d 85 (Second Circuit, 2008)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Fox v. Vice
131 S. Ct. 2205 (Supreme Court, 2011)
Millea v. Metro-North Railroad
658 F.3d 154 (Second Circuit, 2011)
Albert Farbotko v. Clinton County Of New York
433 F.3d 204 (Second Circuit, 2005)
Townsend v. BENJAMIN ENTERPRISES, INC.
679 F.3d 41 (Second Circuit, 2012)
Simmons v. New York City Transit Authority
575 F.3d 170 (Second Circuit, 2009)
Rozell v. Ross-Holst
576 F. Supp. 2d 527 (S.D. New York, 2008)
Perdue v. Kenny A. ex rel. Winn
176 L. Ed. 2d 494 (Supreme Court, 2010)
Douyon v. NY Medical Health Care, P.C.
49 F. Supp. 3d 328 (E.D. New York, 2014)
Grant v. City of Syracuse
357 F. Supp. 3d 180 (N.D. New York, 2019)
Gagne v. Maher
594 F.2d 336 (Second Circuit, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
McPhaul v. Insight Management Partners, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcphaul-v-insight-management-partners-llc-nywd-2022.