Royce C. Lamberth, United States District Judge.
Plaintiffs Jarrod Beck, Erin Galloway, Keerthi Reddy (collectively "plaintiffs") seek attorneys' fees and expenses from defendant Test Masters Educational Services, Inc. ("TES"). This Court entered summary judgment in favor of plaintiffs for claims under the D.C. Consumer Protection Procedures Act, D.C.Code § 28-3905(k)(2)(A) on December 18, 2013. The Court also awarded each plaintiff $1,500, for a total of $4,500, in statutory damages against TES and allowed plaintiffs to seek attorneys' fees. Plaintiffs now seek $963,415.85 in attorneys' fees and costs pursuant to the Court's order. For the reasons discussed below, plaintiffs' Petition for Attorneys' Fees and Expenses will be granted for a reduced amount.
This case was originally filed in 2004 in the Superior Court of the District of Columbia, Case No. 04-CA-005586. Plaintiffs alleged claims of common law fraud, negligent misrepresentation, and violation of the D.C. Consumer Protection Procedures
The Court entered judgment against TES for violation of the CPPA and encouraged the parties to meet and confer to determine a reasonable amount of attorneys' fees. Order, ECF No. 196. Failing to reach an agreement, plaintiffs filed their initial Petition for Attorneys' Fees and Expenses on January 31, 2014. Pet. for Att'y Fees and Expenses, ECF No. 203. The Court denied plaintiffs' request for injunctive relief and awarded $1,500 per plaintiff, for a total of $4,500, in statutory damages on June 20, 2014. Order, ECF No. 218; Mem. Op., ECF No. 219. The Court again encouraged the parties to determine a reasonable amount of attorneys' fees and dismissed the initial Petition for Attorneys' Fees and Expenses without prejudice to be refiled within thirty days if the parties were unable to come to a resolution.
Plaintiffs filed the present Petition for Attorneys' Fees and Expenses on July 21, 2014. Pet. for Att'y Fees and Expenses, ECF No. 221. Plaintiffs seek $963,415.85 in attorneys' fees and expenses. Defendant filed its Opposition to plaintiffs' Petition on August 4, 2014. Mem. in Opp'n to Pls.' Pet. for Att'y Fees and Expenses, ECF No. 222. Plaintiffs entered their Reply to defendant's Opposition on August 14, 2014. Reply in Supp. of Pet. for Att'y Fees and Expenses, ECF No. 223. Defendant sought leave to file a Surreply to plaintiffs' Reply on September 3, 2014. Mot. for Leave to File Surreply, ECF No. 225; Surreply to Pls.' Reply in Supp. of Pet. for Att'y Fees and Expenses, ECF No. 226. Plaintiffs' filed a Response to defendant's Motion for Leave to File a Surreply on September 5, 2014. Opp'n to Def.'s Mot for Leave to File Surreply, ECF No. 227.
The CPPA allows prevailing claimants to recover "reasonable attorney's fees." D.C.Code § 28-3905(k)(2)(B). The Court awarded attorneys' fees to plaintiffs in summary judgment, alongside statutory damages for their CPPA claims, and plaintiffs are entitled to recover reasonable fees and costs incurred in this case. In re InPhonic, Inc., 674 F.Supp.2d 273, 279 (D.D.C.2009). Fees awarded on a successful claim "must be reasonable in relation to the success achieved," and a plaintiff may only recover fees "for work related to the claim" on which plaintiff was successful. Williams v. First Gov't Mortg. & Investors Corp., 225 F.3d 738, 746 (D.C.Cir.2000). "Fees for time spent on claims that ultimately were unsuccessful should be excluded only when the claims are `distinctly different" in all respects, both legal and factual, from plaintiff's successful claims." Id. (quoting Morgan v. District of Columbia, 824 F.2d 1049, 1066 (D.C.Cir.1987)).
"`The most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.'" Baker v. D.C. Pub. Schs., 815 F.Supp.2d 102, 107 (D.D.C. 2011) (quoting Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983)). "The plaintiff bears the burden of demonstrating that the number of hours that its counsel has spent on a particular task is reasonable." Id. (citing Holbrook v. District of Columbia, 305 F.Supp.2d 41, 45 (D.D.C.2004)). A plaintiff may satisfy this burden by submitting invoices with sufficient detail to allow the Court to determine whether or not the hours claimed were justified. Holbrook, 305 F.Supp.2d at 45. Once a plaintiff has provided detailed billing records and invoices, a "presumption arises [in plaintiff's favor] that the number of hours billed is reasonable[,] and the burden shifts to the defendant to rebut the plaintiff's showing of reasonable hours." Watkins v. Vance, 328 F.Supp.2d 27, 31 (D.D.C.2004); see Baker, 815 F.Supp.2d at 107; In re InPhonic, Inc., 674 F.Supp.2d at 280; Herbin v. District of Columbia, No. 02-1185, 2006 WL 890673, at *5 (D.D.C. Apr. 4, 2006). A party objecting to the requested amount of attorneys' fees must justify an adjustment of the lodestar and "submit facts and detailed affidavits to show why the applicant's request should be reduced or denied." Nat'l Ass'n of Concerned Veterans v. Sec'y of Def., 675 F.2d 1319, 1337 (D.C.Cir.1982) (Tamm, J., concurring); see Baker, 815 F.Supp.2d at 107; Covington v. District of Columbia, 839 F.Supp. 894, 898-99 (D.D.C.1993). If appropriate, the Court may also reduce the lodestar amount to account for unreasonable, excessive, deficient, or duplicative entries in a plaintiffs' fee petition. Envtl. Def. Fund, Inc. v. Reilly, 1 F.3d 1254, 1258 (D.C.Cir. 1993); Baker, 815 F.Supp.2d at 109; Lynom v. Widnall, 222 F.Supp.2d 1, 7 (D.D.C.2002).
The Court's determination of reasonable attorneys' fees begins by calculating "the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate." Baker, 815 F.Supp.2d at 107. The Court finds that plaintiffs' documentation of billing entries and expenses is sufficient to establish a reasonable lodestar amount. The lodestar amount, however, will be reduced to exclude attorneys' fees and expenses that the Court previously declined to award in connection with plaintiffs' Motion to Compel and Motion for Sanctions.
The Court looks at the amount of hours that plaintiffs claim to have "reasonably expended on the litigation." Hensley, 461 U.S. at 433, 103 S.Ct. 1933. The Court should exclude all time that is excessive, duplicative, or inadequately documented. Envtl. Def. Fund, Inc., 1 F.3d at 1258. Throughout ten years of litigation, plaintiffs have employed attorneys and staff at the Washington, D.C. law firm of Tycko & Zavareei LLP. The parties have litigated in three separate trial courts and the D.C. Circuit Court of Appeals, with multiple discovery disputes, requests for sanctions, and summary judgment motions. Plaintiffs provided record of their hours by a sworn declaration of a partner with an
TES argues that plaintiffs' proof of attorneys' fees is deficient and objects to several broad categories of plaintiffs' time entries. First, TES argues that plaintiffs have failed to provide "adequate testimony authenticating these documents" under the Federal Rules of Evidence and that plaintiffs' hours log includes improper "excerpts" of reports generated by the attorneys' billing software. Opp'n to Pls.' Pet. for Att'y Fees and Expenses 25, ECF No. 222. These objections are meritless. Consistent with the Court's requirements, plaintiffs have "maintained contemporaneous, complete and standardized time records which accurately reflect the work done by each attorney." Weisberg v. Webster, 749 F.2d 864, 873 (D.C.Cir.1984). Plaintiffs' sworn declaration from the supervising attorney and the hours log, created using the firm's billing software and records, are exactly the sort of evidence normally considered by the Court in evaluating a fee award. Holbrook, 305 F.Supp.2d at 45. The records are sufficient to allow the "Court to make an independent determination whether or not the hours claimed are justified."
Second, TES objects to broad categories of attorneys' fees that it alleges are "examples of [p]lantiffs' counsel's gamesmanship, unreasonable positions, or simple failure to comply with rules of procedure."
The Court will, however, deny plaintiffs' request for attorneys' fees and expenses related to the plaintiffs' Motion for Sanctions under Federal Rule of Civil Procedure 37(b).
Reasonable hourly rates are those "in line with those prevailing in the community for similar services by lawyers of reasonably comparable skill, experience, and reputation." Covington v. District of Columbia, 57 F.3d 1101, 1109 (D.C.Cir. 1995) (internal quotations omitted). Plaintiffs have provided sufficient records to document a reasonable hourly rate for work completed by plaintiffs' attorneys. Plaintiffs' attorneys billed at hourly rates between $250 and $400, and paralegals and staff employed on behalf of plaintiffs billed at an hourly rate of $60. The rates requested by plaintiffs align with those previously awarded to plaintiffs by this Court on March 1, 2013, Mem. & Order, ECF No. 138, and the rates approved by the current Laffey index. Laffey v. Nw. Airlines, 572 F.Supp. 354 (D.D.C.1983), aff'd in part, rev'd in part on other grounds, 746 F.2d 4 (D.C.Cir.1984).
TES has mounted several additional challenges to plaintiffs' Petition for Attorneys' Fees and Expenses, and attempts to demonstrate that no attorneys' fees award is reasonable in light of plaintiffs' limited success in the present litigation. TES's arguments are largely without merit because they do not rebut the reasonableness of plaintiffs' request nor do they justify an adjustment to the lodestar amount.
TES argues that the Court should not award attorneys' fees or expenses because plaintiffs' were not "successful" in their suit. This argument is incorrect. The Court ruled in favor of plaintiffs' CPPA claims and awarded plaintiffs' statutory damages and reasonable attorneys' fees and expenses. That is sufficient to demonstrate that plaintiffs' were successful and that the Court properly, and in its discretion, awarded attorneys' fees. In re InPhonic, Inc., 674 F.Supp.2d at 279. Plaintiffs were not successful in each of their claims, but the Court's order of summary judgment in their favor and award of CPPA statutory damages and attorneys' fees and expenses is sufficient for plaintiffs' to be "successful" under the CPPA.
TES claims arguendo that plaintiffs' attorneys' fees far exceed their relative success on the merits. The Court has expressly rejected a rule of proportionality for attorneys' fees awarded under the CPPA. Williams, 225 F.3d at 747. The CPPA serves several important public policy interests, namely protection from "unconscionable credit transactions exploiting a consumer's likely inability to ... protect
TES also asserts that plaintiffs' request for attorneys' fees and expenses should be reduced because a third party, Robin Singh, paid a portion of plaintiffs' attorneys' fees. First, TES's claims of champerty and maintenance are not appropriate. TES has cited no case to support its claim that third party's payment of a consumer's attorneys' fees limits plaintiffs' ability to recover attorneys' fees or otherwise demeans the reasonableness of plaintiffs' request. The language of the CPPA does not require that attorneys' fees be directly "incurred" by the plaintiffs to support an award. Instead, as a fee-shifting statute, the CPPA allows attorneys' fees to be awarded to successful plaintiffs' regardless of how the attorneys' fees would otherwise be paid. See Blum v. Stenson, 465 U.S. 886, 894, 104 S.Ct. 1541, 79 L.Ed.2d 891 (1984) (noting that "reasonable fees" in federal civil rights actions are to be calculated according to the prevailing community rates regardless of whether plaintiff is represented by private or nonprofit counsel); Covington, 57 F.3d at 1107 (allowing attorney's fee award at prevailing market rates even though attorneys typically charged their poorer clients a reduced rate for noneconomic reasons); Am. Fed'n of Gov't Employees, AFL-CIO, Local 3882 v. Fed. Labor Relations Auth., 944 F.2d 922, 933 (D.C.Cir.1991) (awarding attorney's fees under fee-shifting provision of the Back Pay Act to plaintiff employee even though plaintiff received union counsel's services free of charge). Thus, Mr. Singh's payments for plaintiffs' attorneys' fees from 2004 to 2010 do not diminish or undermine plaintiffs' request.
TES argues that plaintiffs' rejection of a $15,000 settlement offer ($5,000 to each plaintiff) in 2005 weighs against the plaintiffs' request for attorneys' fees. TES's previous settlement offer that predates 96% of litigation costs (including multiple summary judgment motions and appeals to the D.C. Circuit), and does not include attorneys' fees, is not relevant to the current determination of reasonable attorneys' fees. First, TES's $15,000 settlement offer was not an offer of judgment, and thus, it does not limit the Court's later consideration of plaintiffs' attorneys' fees. See Fed.R.Civ.P. 68; Clark v. Sims, 28 F.3d 420, 424 (4th Cir.1994) (vacating an
For the foregoing reasons, plaintiffs' Petition for Attorneys' Fees and Expenses will be granted in the amount of $854,623.90 for attorneys' fees and $73,083.99 for expenses and costs, for a total of $927,707.89. A separate Order accompanies this Memorandum Opinion.