Roneca Echols v. Express Auto, Inc.

Court of Appeals for the Sixth Circuit·Decided May 25, 2021·No. 20-1707·Unpublished

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 21a0252n.06

Nos. 20-1706/1707

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

FILED

RONECA ECHOLS, ) May 25, 2021 ) DEBORAH S. HUNT, Clerk Plaintiff-Appellee, )

)

v. ) ON APPEAL FROM THE ) UNITED STATES DISTRICT EXPRESS AUTO, INC., ) COURT FOR THE WESTERN ) DISTRICT OF MICHIGAN Defendant-Appellant. )

)

BEFORE: WHITE, NALBANDIAN, and READLER, Circuit Judges.

CHAD A. READLER, Circuit Judge. Express Auto sells and finances the sale of used motor vehicles. Roneca Echols, an aspiring customer, brought an action against Express asserting violations of the Equal Credit Opportunity Act. The parties settled for $10,000. Echols then sought attorney’s fees and costs, the issues that eventually gave rise to this appeal. The district court awarded Echols $76,795 in attorney’s fees and $2,125 in non-taxable costs. Seeing no abuse of discretion in that award, we affirm.

I.

On several occasions, Roneca Echols failed to secure financing through Express to purchase a motor vehicle Express offered for sale. Those failures prompted Echols to file suit alleging that Express violated the Equal Credit Opportunity Act (ECOA) in two respects: one by failing to properly notify Echols that she was denied credit, and another by allegedly discriminating against Echols based on her marital status. See 15 U.S.C. § 1691 et seq. The filing precipitated

some early sparring between the parties, with Echols unsuccessfully seeking a lofty settlement award and Express being less than forthcoming during discovery. Ultimately, the parties reached a settlement. Express agreed to pay Echols $10,000 in exchange for a release from the claims asserted in the complaint.

Following the entry of a consent judgment, the district court permitted Echols to petition for attorney’s fees in accordance with the ECOA’s attorney’s fees provision. See 15 U.S.C. § 1691e(d); Buckhannon Bd. & Care Home, Inc. v. W. Va. Dep’t of Health & Hum. Res., 532 U.S. 598, 604 (2001) (noting that a prevailing party includes one who prevails through a settlement by entry of a consent decree). Echols sought attorney’s fees and non-taxable costs totaling $82,395. Express responded primarily by arguing that the requested amount was grossly disproportional to the recovery, and that the fee award should be limited to one third of the settlement amount, which Express assumed (incorrectly) was the fee arrangement Echols had with her counsel. Express also argued that the proposed hourly rates were too high and that the hours claimed were excessive. At the close of a hearing to address the fees petition, the district court explained that Express’s primary argument was “troubling” in that it “clearly ignore[d] the statutory fee shifting provisions and the purposes behind these kinds of statutes,” as well as binding caselaw. The court also criticized Express for asserting, contrary to Supreme Court precedent, that paralegal time was categorically unable to be compensated, an objection Express then withdrew. After reducing one of Echols’s attorneys requested hourly rate, the district court found that the fees sought were reasonable and awarded Echols $76,795 in attorney’s fees and $2,125 in non-taxable costs. In a timely appeal, Express argues that the district court abused its discretion by failing to adequately explain its fees award and by awarding non-taxable costs. (The district court denied a second motion seeking taxable costs pursuant to 28 U.S.C. § 1920, an issue not raised in this appeal.)

II.

One hallmark of the American judicial system is the practice of parties to a lawsuit bearing their own attorney’s fees and costs. In some settings, however, Congress has altered that traditional practice by statute. See Hensley v. Eckerhart, 461 U.S. 424, 429 (1983) (citing Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 247 (1975)). One such example is § 1691e(d) of the ECOA. There, Congress instructed that when a party prevails under specific sections of the ECOA, “the costs of the action, together with a reasonable attorney’s fee as determined by the court, shall be added to any damages awarded by the court under such subsection.” 15 U.S.C. § 1691e(d).

A perhaps more well-known example of Congress’s altering of the custom of bearing one’s own legal fees is 42 U.S.C. § 1988(b), through which Congress authorized district courts to award reasonable attorney’s fees to a prevailing party in various forms of civil rights litigation. Most federal fee-shifting statutes mirror the language of § 1988(b)—including, in many respects, the ECOA. Compare 42 U.S.C. § 1988(b) (authorizing the recovery of “a reasonable attorney’s fee”), with 15 U.S.C. § 1691e(d) (authorizing the recovery of “a reasonable attorney’s fee”). As a result, courts have often borrowed from § 1988(b)’s jurisprudence when analyzing related fee-shifting statutes. See Pennsylvania v. Del. Valley Citizens’ Council for Clean Air, 478 U.S. 546, 562 (1986) (noting there are over 100 separate statutes providing for attorney’s fees, nearly all of which require that the attorney’s fee must be “reasonable”); Hensley, 461 U.S. at 433 n.7 (explaining that “the standards set forth in [Hensley] are generally applicable in all cases in which Congress has authorized an award of fees to a ‘prevailing party’”). We see no reason to deviate from that approach in applying § 1691e(d).

Following the lead of cases interpreting § 1988(b), we note the party seeking an attorney’s fees award under § 1988(b) bears the burden to demonstrate why its fee request is reasonable. See

Hensley, 461 U.S. at 437. To do so, a fee petitioner must submit documentation “supporting the hours worked and rates claimed.” Id. at 433. To measure whether a party’s attorney’s fees request is reasonable, a district court customarily begins by calculating the party’s “lodestar” amount. City of Riverside v. Rivera, 477 U.S. 561, 568 (1986). The lodestar amount is “the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate,” which courts presume to be a reasonable fee award. Id. (quoting Hensley, 461 U.S. at 433). The lodestar calculation’s goal is to provide an amount adequate to attract competent counsel while avoiding a windfall for those counsel. See Blum v. Stenson, 465 U.S. 886, 897 (1984). To arrive at that figure, the district court determines both the number of hours the prevailing attorneys “reasonably expended” on the case as well as the reasonable hourly rates based on the “prevailing market rate in the relevant community.” Rivera, 477 U.S. at 568; Waldo v. Consumers Energy Co., 726 F.3d 802, 821 (6th Cir. 2013) (quoting Adcock-Ladd v. Sec’y of Treasury, 227 F.3d 343, 349–50 (6th Cir. 2000)).

After the initial lodestar calculation, a district court has discretion to adjust that amount based on “relevant considerations peculiar to the subject litigation.” Adcock-Ladd, 227 F.3d at 349. Those considerations may include, among other things, the factors first articulated in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717 (5th Cir. 1974). Included in the 12 Johnson factors are the time and labor required to litigate the case, the results obtained by counsel, counsel’s experience, whether the case is undesirable (for example, because any potential for recovery is small), and the existence of fee agreements between the plaintiff(s) and counsel. Id. at 717–19. “[N]o one factor,” however, “is a substitute for” the lodestar method. Blanchard v. Bergeron, 489 U.S. 87, 94 (1989).

III.

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

Roneca Echols v. Express Auto, Inc., (6th Cir. 2021).

Roneca Echols v. Express Auto, Inc. (Roneca Echols v. Express Auto, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Alyeska Pipeline Service Co. v. Wilderness Society
421 U.S. 240 (Supreme Court, 1975)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
City of Riverside v. Rivera
477 U.S. 561 (Supreme Court, 1986)
Blanchard v. Bergeron
489 U.S. 87 (Supreme Court, 1989)
Missouri v. Jenkins Ex Rel. Agyei
491 U.S. 274 (Supreme Court, 1989)
Fox v. Vice
131 S. Ct. 2205 (Supreme Court, 2011)
Everett Hadix v. Perry Johnson
65 F.3d 532 (Sixth Circuit, 1995)
L & W Supply Corporation v. Acuity
475 F.3d 737 (Sixth Circuit, 2007)
Theresa Waldo v. Consumers Energy Company
726 F.3d 802 (Sixth Circuit, 2013)
Scottsdale Insurance v. Flowers
513 F.3d 546 (Sixth Circuit, 2008)
Imwalle v. Reliance Medical Products, Inc.
515 F.3d 531 (Sixth Circuit, 2008)