VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
This cause comes before the Court pursuant to Plaintiff Charles Westlake's Motion for Attorney's Fees (Doc. # 19), which was filed on December 3, 2015, by Timothy Condon, Esq., as well as Plaintiff Charlotte Westlake's Motion for Attorney's Fees (Doc. # 21), which was filed on December 4, 2015, by Frederick Vollrath, Esq. Defendant Atlantic Recovery Solutions, LLC filed a consolidated Response to both Motions on December 17, 2015. (Doc. # 22).
The Court finds that Plaintiffs are entitled to an award of attorney's fees pursuant to the provisions of the Fair Debt Collections Practices Act and Florida Consumer Collections Practices Act. However, the amount sought — $39,125.50 — is beyond excessive. For the reasons that follow, the Court awards Mr. Condon $4,162.50 and awards Mr. Vollrath a total of $2,849.35 (comprised of $2,637.50 for Mr. Vollrath's services and $211.85 for his paralegal's services). In total, the fee award is $7,011.85.
Charlotte Westlake and her son, Charles Westlake, initiated this case on July 10, 2015, with the filing of their Complaint alleging fraud in the inducement and intentional misrepresentation (count I), violation of the Fair Debt Collection Practices Act (count II), and violation of the Florida Consumer Collections Practices Act (count III). (Doc. # 1). The nine-page Complaint was signed by Mr. Condon and Mr. Vollrath. (
On September 15, 2015, the Court issued its Scheduling Order (Doc. # 10) as well as its Order Referring the Case to Mediation (Doc. # 11). In addition, on September 22, 2015, noting that Plaintiffs failed to move for entry of Clerk's Default when Atlantic Recovery Solutions missed the deadline to respond to the Complaint, the Court issued an Order directing Plaintiffs to show cause why the action should not be dismissed for lack of prosecution. (Doc. # 12). Shortly thereafter, on September 22, 2015, Atlantic Recovery Solutions filed its Answer to the Complaint. (Doc. # 14).
On November 17, 2015, the mediator filed his report explaining: "The case had been settled except for Plaintiffs' attorneys' fees and costs which shall be presented to the Court for resolution." (Doc. # 17). Notably, the case settled before the commencement of formal discovery, prior to any motions being filed, and without any hearings taking place.
Thereafter, Plaintiffs filed their respective Motions for Attorney's Fees. Specifically, Mr. Condon filed his Motion for Attorney's Fees seeking fees totaling $23,310 (based on a rate of $350 per hour and claiming 66.6 hours worked). (Doc. # 19). In addition, Mr. Vollrath filed his Motion for Attorney's Fees seeking fees totaling $15,615.50 (based on a rate of $350 per hour for attorney time and $95 per hour for paralegal time and claiming 42.2 hours of attorney time and 8.9 hours of paralegal time). (Doc. # 21).
Atlantic Recovery Solutions characterizes the fee request as "excessive and inappropriate" and requests that the Court award Mr. Condon $2,592.50 and award Mr. Vollrath $1,657.50. (Doc. # 22 at 2). As detailed herein, the Court reduces the hourly rates of counsel from the requested rate of $350, to the rate of $250. Thereafter, the Court applies a 75% across-the-board reduction to the number of hours requested to arrive at a total fees award of $7,011.85.
In the context of this consumer collection action, it is not disputed that Plaintiffs are entitled to recover reasonable attorneys fees and costs. "The fee applicant bears the burden of establishing entitlement and documenting the appropriate hours and hourly rates."
In determining reasonable fees, the Court must calculate the lodestar, which is the "number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate."
"In determining what is a `reasonable' hourly rate and what number of compensable hours is `reasonable' the court is to consider the 12 factors enumerated in
To calculate the lodestar in this case, the Court must determine the reasonable hourly rate that Plaintiffs' attorneys should have charged. "A reasonable hourly rate is the prevailing market rate in the relevant legal community for similar services by lawyers of reasonably comparable skills, experience, and reputation."
Plaintiffs bear the burden of producing evidence of the prevailing market rate, which must "speak to rates actually billed and paid in similar lawsuits," and may include the expert opinions of other attorneys.
In the Court's view, Mr. Moore's declaration offers only vague statements as to reasonableness of the fees and fails to persuade the Court that Mr. Condon and Mr. Vollrath are entitled to the hourly rate of $350 for the simple and routine case now under consideration. Rather, the Court agrees with the declaration testimony of Ernest H. Kohlmyer, III, Esq. provided by Defendant in objecting to the fees sought in this case. (Doc. # 22-1). Among other observations, Mr. Kohlmyer indicates:
(Doc. # 22-1 at ¶ 10).
Mr. Kohlmyer also posits that: "With respect to a reasonable hourly rate, it is my opinion based upon my experience in litigating consumer law cases in the Tampa Bay area that a reasonable hourly rate for consumer attorneys ranges from $225 to $275 . . . . Attorney Vollrath's and Attorney Condon's respective experience in litigating these cases places them in the middle of this spectrum." (
After due consideration, the Court determines that both attorneys are entitled to the hourly rate of $250.
The Court may use its discretion and expertise to determine an appropriate hourly rate.
Next, the Court must determine the number of reasonable hours expended by Plaintiffs' counsel. Mr. Condon claims 66.6 hours of attorney time and Mr. Vollrath claims 42.2 hours of attorney time, in addition to 8.9 hours of paralegal time. The amount claimed is patently excessive and demonstrates to the Court that Plaintiffs' legal representatives did not utilize billing judgment. No depositions were taken, no discovery demands were to have been exchanged (per Court Order), no motions (other than the present Motions for Attorney's Fees) were filed, and the case was not tried. Rather, after the Complaint and Answer were filed, the case settled at the mediation conference. From start to finish, the case was pending for less than five months.
The Court makes the following findings with respect to the amount of hours claimed in this action: (1) Mr. Condon's and Mr. Vollrath's time entries include block billing and are so vague that it is nearly impossible to determine the work performed by counsel; (2) Mr. Condon and Mr. Vollrath each include time entries that are clerical in nature; (3) two attorneys were not necessary for this case; (4) Mr. Condon and Mr. Vollrath have included unnecessary and duplicative time entries; and (5) the case was settled without motion practice, trial, or traditional discovery, rendering the number of hours sought by counsel excessive and unnecessary.
The Court has frequently utilized an across-the-board fee reduction for instances were counsel have submitted fee ledgers containing block billing and in other circumstances where excessive fees were sought. In this case, the Court determines that an across-the-board fee reduction of 75% is required to rectify the problem presented. Most blatantly, Plaintiffs' counsel billed for the preparation of an Amended Complaint that was never authorized or filed, and also billed for the preparation of formal discovery (such as Requests for Admissions and Requests for Production) when the Court's scheduling order, which was filed in this type of case to curb fees and costs, prohibited the parties from propounding discovery requests.
"Fee applicants must exercise . . . `billing judgment,' that means they must exclude from their fee applications 'excessive, redundant, or otherwise unnecessary hours.'"
Here, Mr. Condon claims to have incurred 66.6 hours. The Court reduces these hours by 75% and will allow Mr. Condon to recover for 16.65 hours. Likewise, Mr. Vollrath claims to have incurred 42.2 hours. The Court reduces these hours by 75% and will allow Mr. Vollrath to recover for 10.55 hours for his services and will allow 2.23 hours his paralegal's services. Thus, the Court awards Mr. Condon $4,162.50 and awards Mr. Vollrath a total of $2,849.35 (comprised of $2,637.50 for attorney services and $211.85 for paralegal services).
The Court has made this reduction considering that the case was neither novel nor was it complex. The skill required to perform the legal services properly was not great, especially considering that the only pleading Plaintiffs filed was the initial complaint. There is no indication that Plaintiffs' counsel were precluded from other employment for the four months that this case was pending, and minimal efforts were expended to bring the case to a resolution. As previously noted, no Court time was required in this case, which settled at mediation shortly after Defendant filed an Answer. These considerations, and others detailed above, support the Court's reduction in the number of hours found to be compensable.
Accordingly, it is
Charles Westlake's Motion for Attorney's Fees (Doc. # 19), filed by Timothy Condon, Esq. and Charlotte Westlake's Motion for Attorney's Fees (Doc. # 21), filed by Frederick Vollrath, Esq., are