QURESHI v. OPS 9, LLC

CourtDistrict Court, D. New Jersey
DecidedApril 20, 2020
Docket2:14-cv-01806
StatusUnknown

This text of QURESHI v. OPS 9, LLC (QURESHI v. OPS 9, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
QURESHI v. OPS 9, LLC, (D.N.J. 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY ____________________________________ : MARYAM QURESHI, on behalf of : herself and others similarly situated, : : Plaintiff, : Civil Action No. 14-1806 (MAH) : v. : : OPS 9, LLC and ANURAG SETT, : : Defendants. : ____________________________________: : OPS 9, LLC and ANURAG SETT , : : Third-Party Plaintiffs, : : v. : : OPINION FALONI & ASSOCIATES, : : Third-Party Defendants. : ____________________________________:

I. INTRODUCTION This matter comes before the Court by way of Defendants/Third-Party Plaintiffs OPS 9, LLC and Anurag Sett’s (collectively, “OPS 9”) Motion for Attorneys’ Fees. The Court has considered this motion without oral argument. See Local Civ. R. 78.1(b). For the reasons set forth below, the Motion is granted in part and denied in part. II. BACKGROUND On February 6, 2014, Plaintiff Maryam Qureshi filed a class action complaint against OPS 9 for purported violations of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1692 to 1692p, in the Superior Court of New Jersey, Law Division, Middlesex County. See Notice of Removal Ex. A, Mar. 21, 2014, D.E. 1. Plaintiffs alleged that OPS 9 purchases consumer debts and attempts to collect on the amounts owed by way of collection actions. See id., Ex. A ¶¶ 15-21. Plaintiffs averred, among other things, that OPS 9 violated the FDCPA by failing to accurately identify the amount of the debt allegedly owed and by including complete and unredacted financial account numbers in court documents. See id., Ex. A ¶¶ 88-96.

OPS 9 removed the action to this Court, and filed a Third-Party Complaint against Faloni & Associates (“Faloni”) shortly thereafter. See generally Third-Party Compl., Apr. 10, 2014, D.E. 7. OPS 9 had retained Faloni to institute collection actions pursuant to a contract containing an indemnification clause that requires Faloni to defend and indemnify OPS 9 under certain circumstances. See id. ¶¶ 1, 13-14. The contract provided that Faloni agreed to: Indemnify, defend, and hold [OPS 9] harmless against liability, loss, or damage, including but not limited to attorney’s fees and costs, which may result from any acts of commission or omission by [Faloni], its agents, servants, representative (sic), or employees or by reason of any matter or thing arising out the performance of services by [Faloni] under the Collection Agreement.

Decl. of Anurag Sett in Supp. of Third-Party Pl.’s Mot. for Attorneys’ Fees (“Sett Decl.”) ¶ 7, Oct. 26, 2019, D.E. 128-4. In the Third-Party Complaint, OPS 9 brought claims for indemnification, contribution, breach of contract, breach of fiduciary duty, and negligence. See Third-Party Compl. ¶¶ 20-44. OPS 9 moved for summary judgment on its Third-Party Complaint, which the District Court granted in part and denied in part on October 28, 2016. See Order, D.E. 71. Specifically, the Court held that Faloni has duty to defend OPS 9 in connection with the underlying action. Id. Litigation meanwhile proceeded on Plaintiff’s FDCPA claims. The parties engaged in discovery; motion practice that included, among other things, a Rule 12(c) motion and a motion for class certification; mediation before a retired District Court judge; and settlement conferences 2 before the Undersigned. The parties ultimately reached a putative settlement wherein the class received $27,000 and class counsel received $70,000 for their fees and costs. See Order Granting Final Approval of Class Action Settlement ¶¶ 11-13, Mar. 18, 2020, D.E. 140. OPS 9 was represented by two law firms throughout this civil action. The Salvo Law Firm, P.C. (“Salvo

Firm”) served as OPS 9’s “local counsel,” and the Bedard Law Group, P.C. (“Bedard Firm”) served as OPS 9’s “national counsel.” See Decl. of Cindy D. Salvo, Esq. in Supp. of Third-Party Pl.’s Mot. for Attorneys’ Fees (“Salvo Decl.”) ¶ 1, Oct. 26, 2019, D.E. 128-2; Decl. of John H. Bedard, Jr., Esq., in Supp. of Third-Party Pl.’s Mot. for Attorneys’ Fees (“Bedard Decl.”) ¶ 1, Oct. 26, 2019, D.E. 128-3; Sett Decl. ¶ 10. By way of the instant motion, OPS 9 seeks $100,825.93 to cover its attorneys’ fees and costs expended in this action.1 See Mot. for Attorneys’ Fees, Oct. 26, 2019, D.E. 128; OPS 9’s Reply Br. at 8-9. OPS 9 has submitted declarations from Cindy D. Salvo, Esq., a partner at the Salvo Firm, and John H. Bedard, Jr., Esq., the sole shareholder of the Bedard Firm, in support of the present motion. Ms. Salvo and Mr. Bedard provided billing records itemizing the time their

respective firms spent litigating this action. See Salvo Decl., Ex. B; Bedard Decl., Ex. A. Faloni partially opposes OPS 9’s motion. Faloni acknowledges that OPS 9 is “entitled to some award of fees/expenses in connection with this lawsuit,” and “does not contest the hourly rates charged by the two outside law firms handling this matter on behalf of [OPS 9].” Faloni’s Br. in Opp. to Mot. for Attorneys’ Fees (“Faloni’s Opp. Br.”) at 1, Nov. 20, 2019, D.E. 131. However, Faloni does contest the overall amount requested and the reasonableness of certain

1 The $100,825.93 figure is comprised of the fees arising from the underlying defense as well as the instant motion, less certain fees that OPS 9 has agreed to waive. See OPS 9’s Reply Br. in Supp. of Mot. for Attorneys’ Fees at 8-9, Dec. 9, 2019, D.E. 134. 3 billing entries. See id. at 1-2. Faloni asserts that “[u]nder no circumstances should counsel for [OPS 9] receive more than—or even the same as—the amount agreed to by plaintiff’s counsel” as part of the underlying settlement. Id. According to Faloni, “there can be no better gauge of the amount of reasonable fees/expenses to be awarded to [OPS 9’s] counsel in this case than the

amount agreed to by plaintiff’s counsel.” Id. at 4. Faloni next identifies various categories of billing entries that it deems to be unreasonable: (1) alleged instances of double-billing for the same task by OPS 9’s local and national counsel, (2) billing entries that correspond to interoffice communications between local and national counsel, (3) billing entries related to the filing of an Affidavit of Merit (“AOM”), (4) billing entries related to OPS 9’s Rule 12(c) motion, and (5) billing entries related to a different file. See id. at 5-11. Faloni suggests a compromise award that consists of the total amount requested by the Salvo Firm, plus a nominal award of $5,000 to the Bedard Firm. Id. at 11-12. In Faloni’s view, [a]warding fees/expenses in this fashion . . . is the most appropriate and balanced way to fairly compensate [OPS 9’s] counsel for what should have occurred here, which is that one law firm “takes the lead” in the case while the other law firm only provides a modest amount of support.

Id. Faloni also contends that OPS 9 should receive no fees in conjunction with this motion because counsel did not provide evidence of their fees and expenses with their initial papers. Id. III. ANALYSIS “The party seeking attorneys’ fees has the burden of proving that the requested fees are reasonable.” Jackson Hewitt Inc. v. Nat’l Tax Network, LLC, No. 10-5912, 2015 WL 5770089, at *4 (D.N.J. Sept. 29, 2015). “The starting point for determining any reasonable fee is to calculate a ‘lodestar’ amount; that is, the number of hours reasonably expended multiplied by a 4 reasonable hourly rate.” Blakey v. Cont'l Airlines, Inc., 2 F. Supp. 2d 598, 602 (D.N.J. 1998). Once determined, the lodestar is presumed to be the reasonable fee. See Rode v. Dellarciprete, 892 F.2d 1177, 1183 (3d Cir. 1990). The Court may then, in its discretion, adjust the lodestar to account for the degree of success achieved. See I.K. v. Montclair Bd.

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Bluebook (online)
QURESHI v. OPS 9, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qureshi-v-ops-9-llc-njd-2020.