SARAH EVANS BARKER, District Judge.
This is a straightforward, uncomplicated Fair Debt Collection Practices Act (FDCPA) lawsuit
The FDCPA makes mandatory an award of attorney's fees in favor of the prevailing party.
Defendants claim to be reeling from what they characterize as Mr. Frasher's clearly "excessive" fees request. Citing
We address below seriatum Defendant's specific objections to Mr. Frasher's fees request, beginning with the
Mr. Frasher seeks payment based on what he claims is his "normal hourly rate (of) $295 per hour for consumer law cases." (Pl.'s Reply at1). He buttresses his claim as to the reasonableness of this amount by citing to the United States Consumer Law Attorney Fee Survey Report (Exh. E to Pl.'s Motion [Dkt. 23]), a copy of which he appended to his submission as support for this rate. A review of this proprietary newsletter ("Fee Survey") leaves us in doubt as to its usefulness here or its overall reliability. It purports to capture and distill results from an on-line survey conducted sometime during 2010 (two years prior to the filing of the case before us) from among active members of a group from across the United States of apparently like-minded, similarly engaged litigators, namely, the National Association of Consumer Advocates. An in-depth study is not needed to identify some fairly obvious facial weaknesses in the data recounted there. For example, the report reflects the responses from a noticeably small sample size of members. In addition, the uniformity of their interests (and no doubt biases) is also apparent. We could identify no controls or differentiations in the sampling or the data based on specific geographical legal markets; for example, the chart in the report that presumably validates Mr. Frasher's fees amount reflects an hourly rate of $263 for attorneys practicing consumer law in the "Midwest Region" with 5 years' experience. For lawyers practicing 10 years (the next level up on the chart) the hourly rate is $318. A designation of "Midwest Region" obviously implicates a highly diverse territory, particularly in terms of the economics of practicing law. Chicago ordinarily is not viewed as a comparable marketplace for legal services to Indianapolis or Louisville, Kentucky or Columbus, Ohio, or Detroit, Michigan — all solidly within the usual definitions of "Midwest." Beyond these grouping errors, it is obvious that in responding to such a survey as produced here to substantiate a reasonable attorney's fee in consumer litigation, such a group of lawyers is incented by their common interest to report the highest hourly billable rates within their diverse region.
Since Mr. Frasher did not set an hourly fee for his services at the outset of his representation of Plaintiff, having instead chosen to litigate this case on a contingency basis, we have no verification of what he represents as his "usual hourly rate" beyond the Fee Survey. He has not documented his receipt of that level of hourly fee in any of his other cases. In the absence of any objective verification, it is tempting to conclude that his $295 hourly rate is based only on the Fee Survey, despite Mr. Frasher's characterization of that amount as his "customary rate." The Court in
The customary and judicially preferred standard by which the reasonableness of hourly rates is measured ordinarily comes from sworn statements or testimony or other documentation attesting to the experience and opinions of other lawyers who regularly practice in a particular geographical area and who provide similar or comparable legal services in that marketplace as the lawyer seeking the award of fees (i.e., Indianapolis, Indiana). A more experienced practitioner in federal court would likely know this. No such evidence has been submitted here by Mr. Frasher. "An attorney's `market rate is the rate that lawyers of similar ability and experience in the community normally charge their paying clients for the type of work in question.'"
Thus, we observe that Mr. Frasher is a young lawyer, having been admitted to the Indiana bar as recently as 2007 immediately following his graduation from the University of Dayton Law School. During his first six years of practicing law, he says he "has focused on consumer law," handling cases in federal court that arise under a variety of statutes, including the "FDCPA, RESPA, EFTA, FCRA and the ADA." Though he has had only one case so far that has gone to trial, he estimates the number of his cases currently pending in federal court to be more than thirty. On this basis, Mr. Frasher describes himself as an "experienced consumer lawyer."
Defendants take issue with Mr. Frasher's description of himself as an experienced consumer lawyer primarily due to his limited years of practice, but also based on the detailed review Defendants conducted of Mr. Frasher's case filings based on the PACER docketing system maintained by our Clerk of Court. Defendants note that, according to their research of the PACER data, Mr. Frasher's first case filed in our court commenced in 2009, and was concluded shortly thereafter by a dismissal. Many others of his cases have also been dismissed shortly after they were filed for reasons not apparent on the docket. In certain instances, Mr. Frasher's role in a case was minimal, involving him only as co-counsel or local counsel. His most recent case (other than the one before us here) still pends, but remains in its earliest stages.
Defendants call our attention to several recent FDCPA decisions handed down by other judges in our district (
Lacking any objective information as to Mr. Frasher's "usual billing rates" in similar non-contingency cases, and lacking any comparative evidence of fees charged by attorneys with comparable levels of experience in consumer law cases litigated in this district and/or the Indianapolis market, we cannot justify a $295/hour rate. His experience so far is only as a pleader, not a litigator. Accordingly, we hold that a reasonable fee is $195/hour, based on Mr. Frasher's relative lack of experience and expertise in handling such cases as well as the straightforward, uncomplicated nature of the claims in this matter as well as the modest amount of damages awarded Plaintiff as the prevailing party. This reduced rate more closely approximates the fees approved in similar cases in this district and in other courts within our circuit. As was true in Lemieux, we view this case as an open and shut matter, posing no difficult legal issues and yielding easily and quickly to a resolution by an agreed judgment. Thus, the expenditures of time and effort required of counsel were quite modest, the stakes of the case were also modest and the outcome never seriously in doubt.
Defendants have further objected specifically to the supplemental request for fees filed by Mr. Frasher [Dkt. 26] by which he has sought additional sums to cover his post-petition efforts in prosecuting his petition for fees. We agree with Defendants that the amount of this supplemental request is also excessive, speculating that if Mr. Frasher had been more measured and reasonable in his initial requests, and provided reliable, verifiable comparators, Defendants might not have mounted a significant challenge to what they viewed as his overreach. Thus, we shall reduce by half the requested amount of time expended by Mr. Frasher as reflected in his supplemental reimbursement submission.
We turn next to the issue of Mr. Frasher's time expenditures. Mr. Frasher seeks reimbursement for a total of
Defendants challenge what they characterize as several unnecessary research tasks, i.e., the "bona fide error defense" under the FDCPA (0.3 hours), bankruptcy jurisdiction issues (0.3 hours), class action procedures under Rule 23, Fed.R.Civ.P. (0.2 hours), various state law claims such as the Indiana Deceptive Consumer Sales Act claim (1.5 hours), and conversion (2.0 hours). Each of these claims was either futile or superfluous, Defendants maintain, and reflects the inefficient casting about of a lawyer who is inexperienced in framing and pursuing FDCPA actions. Defendants further note that the claims for punitive damages under the FDCPA and for declaratory relief under the FDCPA were unavailable to Plaintiff, so reductions for the time spent researching and drafting those claims should also be deducted. The time spent by Mr. Frasher relating to vacating a state court judgment entered prior to the date plaintiff commenced her bankruptcy proceeding was clearly irrelevant to this case, say Defendants, and thus should also be deducted. (No time amount was specified for this task by Defendants.)
Other deductions sought by Defendants include:
• One hour spent drafting a two-page demand letter;
• One hour spent drafting discovery requests;
• 0.8 hours spent drafting the case management plan; and
• Approximately 2 hours spent on administrative and clerical tasks.
Beyond these specific disallowances, Defendants assert that an overall cap of 15 hours would be appropriate and should be imposed on Mr. Frasher's time expenditures.
In response, Mr. Frasher offers various explanations for his time expenditures. In general, he maintains that his research reflects a level of commendable care and caution on his part in dealing with and anticipating all possible aspects of litigation such as this (i.e., the bona fide error defense, the bankruptcy option, state law theories of relief and their defenses, and the potential for a Class Action). Because we have reduced Mr. Frasher's hourly rate to take into account his lack of experience in handling this kind of litigation, it would be unfair to penalize him twice for the kind of inefficiencies that result from his lack of experience. In any event, we cannot quarrel with his having spent one hour drafting the demand letter or another hour drafting discovery requests in advance of receiving Defendants' Rule 68 Offer of Judgment. However, the administrative time counsel spent on secretarial or clerical tasks is not ordinarily appropriate as an attorney's fee (
For the reasons previously explicated, we award fees to Plaintiff's counsel in the following amounts:
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IT IS SO ORDERED: