Yu Zhang v. GC Services, LP

537 F. Supp. 2d 805, 2008 U.S. Dist. LEXIS 17991
CourtDistrict Court, E.D. Virginia
DecidedJanuary 7, 2008
DocketCivil 3:07CV94
StatusPublished
Cited by4 cases

This text of 537 F. Supp. 2d 805 (Yu Zhang v. GC Services, LP) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yu Zhang v. GC Services, LP, 537 F. Supp. 2d 805, 2008 U.S. Dist. LEXIS 17991 (E.D. Va. 2008).

Opinion

MEMORANDUM OPINION

DENNIS W. DOHNAL, United States Magistrate Judge.

This matter is before the Court on Plaintiffs’ motion for attorney’s fees and costs (docket entry no. 15), pursuant to the acceptance by Plaintiffs of Defendant’s Offer of Judgment that included all “reasonable” attorney’s fees and costs. All relevant issues have been fully briefed, and the Court concludes that oral argument would not be of additional assistance in the decisional process. Accordingly, the matter is ready for resolution.

I. Background

Plaintiffs Yu Zhang and Xiaoyuan Yu (“Plaintiffs”) filed a complaint against Defendant, GC Services, LP, pursuant to the Fair Debt Collection Practices Act (“FDCPA”) and a state collection statute. The parties consented to the jurisdiction of this Court and the merits of the case were resolved by Plaintiffs acceptance of the Defendant’s Offer of Judgment relatively soon thereafter. The Offer provided, in pertinent part, for judgment to be taken against Defendant in the amount of $ 1,000.00 per plaintiff, which is the statutory “cap” for each violation of the FDCPA, plus all reasonable attorney’s fees and costs. (Def.’s Mem. Supp. Mot. for Protective Order at 1.)

Defendant rejected Plaintiffs’ initial informal demand of thirty thousand dollars ($30,000) for fees and costs. The Court thereupon conducted a conference call with all counsel in which it directed Plaintiffs’ counsel to produce Plaintiffs’ attorneys’ fee records for in camera review. After the Court reviewed the records and determined that there was no privileged materi *808 al involved, it instructed Plaintiffs’ counsel to provide them to defense counsel so that the defense could assess the reasonableness of the requested fees. At that juncture, Plaintiffs’ counsel reduced the demand for fees to Twenty Four Thousand Eight Hundred Seventy Seven and 50/100 ($24,877.50) Dollars.

Defendant continued to assert that the amount was unreasonable and, therefore, the Court advised counsel that if the parties were unable to agree on an amount, Plaintiffs’ counsel could file a fee petition, to which Defendant could respond. Accordingly, Plaintiffs’ counsel filed the motion and Defendant noted its opposition in response.

On November 16, 2007, the Court issued an Order for reasons to be set forth in this Memorandum Opinion, granting Plaintiffs’ motion for an extension of time to file a reply brief; denying Plaintiffs’ motion to compel (docket entry no. 20), Defendant’s motion to quash (docket entry no. 22), and Defendant’s motion for a protective order (docket entry no. 25); and cancelling the motions hearing that had been scheduled.

II. Previously Outstanding Motions

A. Plaintiffs’ Motion to Compel

Plaintiffs’ Position:

Plaintiffs argue in support of their motion that there is precedent for their request for Defendant counsel’s time records where Defendant objects to the fee petition on the basis of the alleged unreasonableness of the effort expended. (Pis.’ Mot. to Compel at 3-M.) Specifically, Plaintiffs refer the Court to Stastny v. S. Bell Tel. & Tel. Co., 77 F.R.D. 662 (W.D.N.C.1978), and assert that the case holds that the time opposing counsel spends on a case is relevant to the reasonableness of the time expended by petitioning counsel. Plaintiffs also note an Eleventh Circuit case. Henson v. Columbus Bank & Trust Co., 770 F.2d 1566, 1575 (11th Cir.1985), and a Sixth Circuit case, Black v. Lojac Enters., Inc., 117 F.3d 1420 (6th Cir.1997) (per curiam), for the same proposition. Accordingly, Plaintiffs moved the Court to compel defense counsel to comply with their subpoena requesting all billing records, time sheets, invoices, or other documents which reflect the effort performed by the law firm in defense of the matter. (Pis.’ Mot. to Compel at 6.)

Defendant’s Opposition:

Defendant contends that Plaintiffs fail to justify the relevance of defense counsel fee records in determining the reasonableness of Plaintiffs’ counsel fees. (Def.’s Mem. In Opp’n to Pis.’ Mot. to Compel at 3.) Defendant claims that “defending this claim and prosecuting it were two entirely different propositions, and an ‘apples-to-oranges’ comparison of the fees generated at such an early stage in this litigation provides no conceivable insight to the Court in its determination of the reasonableness of the fees reflected in Plaintiffs’ fee records.” Id. Defendant emphasizes that Plaintiffs bear the burden of proving reasonableness since they are the party seeking the payment of the fees. Id. The defense further contends that no precedent exists mandating a review of the billing records of opposing counsel, and that the Fourth Circuit has previously compiled a list of the factors to be considered in determining the reasonableness of fees under a lodestar calculus which does not include an analysis of the legal fees of the opposing party. (Id. at 4.)

Analysis:

While Plaintiffs are correct in their assertion that some courts have found it useful to compare opposing counsel’s efforts and resulting hours and fees with the fee petitioner’s demands in order to determine the reasonableness of the requested attorneys’ fees, the authority relied on by Plaintiffs do not stand for the proposition *809 that the Court must undertake such a comparison. In fact, the same authority also cautions against the hazards of such a comparison and notes that only occasionally do courts endeavor to compare the opposing counsel’s fee records. For example, the Court of Appeals for the Eleventh Circuit, in Henson, stated that:

We have on occasion questioned whether the number of hours spent on a case by defense counsel is relevant to a determination of the reasonable fees for plaintiffs’ attorneys. Our reasoning has been that the number of hours needed by one side to prepare adequately may differ substantially from that of opposing counsel because the nature of the work on each side may differ dramatically.... We have acknowledged, however, that in some cases it would be proper to allow the discovery of and use of such evidence.

Henson, 770 F.2d at 1574 (internal citations omitted) (emphasis added). It is clear from a review of all relevant authority that the decision of whether a comparison of opposing counsel’s time records and resulting fees would aid in the determination of the reasonableness of requested attorneys’ fees is solely within the court’s discretion.

Here, Plaintiffs fail to provide any compelling explanation of the relevance of defense counsel’s time sheets. Plaintiffs merely assert that the time-sheets “are certainly probative to the inherently subjective determination [Defendant] asks the Court to make on its objections as to reasonableness and excessiveness.” (Pis.’ Mot.

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Bluebook (online)
537 F. Supp. 2d 805, 2008 U.S. Dist. LEXIS 17991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yu-zhang-v-gc-services-lp-vaed-2008.