Rivera v. Corporate Receivables, Inc.

540 F. Supp. 2d 329, 2008 WL 834425
CourtDistrict Court, D. Connecticut
DecidedMarch 28, 2008
Docket3:06-cv-00531
StatusPublished
Cited by7 cases

This text of 540 F. Supp. 2d 329 (Rivera v. Corporate Receivables, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rivera v. Corporate Receivables, Inc., 540 F. Supp. 2d 329, 2008 WL 834425 (D. Conn. 2008).

Opinion

RULING ON PLAINTIFF’S APPLICATION FOR ATTORNEY’S FEES AND COSTS

THOMAS P. SMITH, United States Magistrate Judge.

Plaintiff Adriana Rivera seeks attorney’s fees and costs pursuant to 15 U.S.C. § 1692 et seq. Plaintiffs application for attorney’s fees and costs, submitted by her counsel Daniel Blinn, Esquire, requests a fee award of $30,652.75, plus costs of $92.59. The total amount requested is $30,745.34. Defendant Corporate Receivables, Inc. (“CRI”) opposes plaintiffs motion. For the reasons set forth herein, plaintiffs motion for attorney’s fees and costs [Dkt. # 68] is GRANTED, but with significant reductions. Plaintiff is awarded $9,195.83 in attorney’s fees and $92.59 in costs, for a total of $9,288.42.

I. Facts

On April 6, 2006, plaintiff Adriana Rivera filed a two-count complaint against CRI alleging specific violations of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq., as well as a state law claim for intentional infliction of emotional distress. These claims arose from CRI’s efforts to collect on an unpaid credit card account used to purchase a motorcycle. Plaintiff was a cosigner on that credit card account. CRI filed a motion to dismiss the claim of intentional infliction of emotional distress pursuant to Fed. R.Civ.P. 12(b)(6) on July 17, 2006 [Dkt. # 13], which was successfully opposed by plaintiff. On March 22, 2007, CRI filed a $4,000 offer of judgment, inclusive of attorney’s fees, which was rejected by plaintiff. The matter was subsequently tried to a jury on October 9 and 10, 2007. 28 U.S.C. § 636(c).

Pursuant to the first count of her complaint, plaintiff attempted to prove at trial that defendant CRI, through its employee Jose Sobrino (“Sobrino”), engaged in seven distinct violations of the FDCPA. 1 Pursuant to the second count of her complaint, plaintiff offered evidence of her claim for intentional infliction of emotional distress and actual damages. Among the several full exhibits placed into evidence by plaintiff was a “Stipulation of Uncontested Facts and Law” which conceded one of the seven claimed FDCPA violations. Specifically, as referenced by Attorney Blinn in his closing argument, the parties stipulated that CRI had violated 15 U.S.C. § 1692g (“the stipulated violation”) by failing to give plaintiff the required timely written notice of the debt, its collection, and her rights to dispute or verify the debt in question.

*334 After deliberation, the jury returned a verdict in plaintiffs favor on the conceded 15 U.S.C. § 1692g violation, awarding statutory damages in the amount of $1,000. [Dkt. # 67]. The jury found for defendant CRI on the six other claimed FDCPA violations and on plaintiffs claim of intentional infliction of emotional distress. Further, the jury found that plaintiff had not proven any actual damages. Plaintiff filed her motion for attorney’s fees and costs [Dkt. # 68] with the required accompanying affidavit [Dkt. #70] on October 24, 2007. Defendant filed its brief in opposition on November 14, 2007. [Dkt. # 73].

II. Discussion

A. Offer of Judgment

Rule 68 of the Federal Rules of Civil Procedure provides, in relevant part:

At any time more than 10 days before the trial begins, a party defending against a claim may serve upon the adverse party an offer to allow judgment to be taken against the defending party for the money or property or to the effect specified in the offer, with costs then accrued.... An offer not accepted shall be deemed withdrawn and evidence thereof is not admissible except in a proceeding to determine costs. If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer....

Fed.R.Civ.P. 68. The purpose of Rule 68 is to encourage settlement and avoid litigation by prompting the parties to evaluate the risks and costs of litigation, and to balance them against the likelihood of success at trial. Advisory Committee Note on Rules of Civil Procedure, Report of Proposed Amendments, 5 F.R.D. 433, 483 n. 1 (1946); Marek v. Chesny, 473 U.S. 1, 5, 105 S.Ct. 3012, 87 L.Ed.2d 1 (1985). The Supreme Court has held that Rule 68 requires that any offer allow “judgment to be taken against the defendant for both the damages caused by the challenged conduct and the costs then accrued.” Marek, 473 U.S. at 6, 105 S.Ct. 3012.

Accordingly, costs and fees must be included in any valid offer of judgment. This can be accomplished in either of two ways, depending on the phrasing of the offer. If the offer contains language that indicates that fees and costs are included, then that offer represents an aggregation of projected damages and fees and costs accrued to that point. Id. Alternatively, if the offer is silent as to fees and costs or states that they are not included, the court is required by the Rule to calculate an additional amount which, in its discretion, it determines to be sufficient to cover costs and fees. Id. “If a plaintiff chooses to reject a reasonable offer, then it is fair that he not be allowed to shift the cost of continuing the litigation to the defendant in the event that his gamble produces an award that is less than or equal to the amount offered.” Delta Air Lines, Inc. v. August, 450 U.S. 346, 356, 101 S.Ct. 1146, 67 L.Ed.2d 287 (1981). Under that reasoning, a plaintiff will be required to bear its own post-offer costs and the post-offer costs of the defendant when it fails to accept a reasonable offer of judgment. See Jolly v. Coughlin, No. 92-CV-9026(JGK), 1999 WL 20895 at *9 (S.D.N.Y. Jan. 19, 1999). An offer of judgment is reasonable if it is equal to or greater than the sum of the award granted at trial and reasonable attorney’s fees and costs up to the date of the offer.

Defendant’s March 22, 2007 offer of judgment was in the amount of $4,000, inclusive of attorney’s fees. As plaintiff was awarded $1,000 at trial, that offer was reasonable only if plaintiffs attorney’s fees up until the offer were $3,000 or less.

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540 F. Supp. 2d 329, 2008 WL 834425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivera-v-corporate-receivables-inc-ctd-2008.