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Birge v. Brumbaugh & Quandahl, P.C., LLO
8:13-cv-00008
D. Neb.
Feb 20, 2014
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Background

  • Birge sues Brumbaugh & Quandahl law firm and Midland for FDCPA and NCPA violations; class action settlement resolves claims but Midland not required to contribute; plaintiffs seek $40,835.33 in attorneys’ fees; time records show hours and rates for Bragg, Car, Reinbrecht, Carter; court reduces duplicative and clerical time and adjusts rates to Erikson benchmarks; lodging fee lodestar calculated at $27,310; costs of $1,405.33 awarded; settlement released FDCPA and NCPA claims with Midland not contributing to fee award.
  • Settlement negotiations began before discovery; tentative settlement in April 2013; settlement reached before defendants filed an answer; action commenced January 2013.
  • The court acknowledges some duplicative and clerical time and reduces Bragg by 3.6 hours, Car by 0.5 hour, Reinbrecht by 1 hour; clerical tasks not billed at paralegal rate; Carter’s paralegal rate deemed reasonable; rates adjusted to Erikson benchmarks; lodestar totaling $27,310; costs awarded.
  • Birge’s fee request is for successful claims; court finds prevailing party status for fee entitlement; multiple reductions for duplicative and clerical work to arrive at reasonable hours; Daniels-like fee award is supported by market-rate analysis and Johnson/Marez factors.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Reasonableness of fees (lodestar) Birge's team used reasonable hours and market-rate rates Fees inflated by duplication and clerical work Yes; lodestar accepted with reductions
Duplicative/clerical time Time entries reflect legitimate work Entries include duplicative and clerical tasks Reductions applied to Bragg, Car, Reinbrecht; clerical time excluded from paralegal rates
Rates adjustment Rates align with Erikson benchmarks Rates should remain as requested Rates adjusted to Erikson levels; total lodestar reduced
Prevailing party entitlement Birge prevailed on major claims Settlement forecloses some claims and Midland not liable for fees Court awards fees for successful claims; prevailing party entitled to fees
Costs awarded Costs necessary and reasonable Costs should be disallowed or limited Costs awarded as reasonable and necessary

Key Cases Cited

  • Hensley v. Eckerhart, 461 U.S. 424 (Sup. Ct. 1983) (establishes lodestar and enhancements framework for fee awards)
  • Marez v. Saint–Gobain Containers, Inc., 688 F.3d 958 (8th Cir. 2012) (guides factor-based adjustment of fees within lodestar framework)
  • Blum v. Stenson, 465 U.S. 886 (Sup. Ct. 1984) (market value for legal services; reasonableness of fees)
  • Avalon Cinema Corp. v. Thompson, 689 F.2d 137 (8th Cir. 1982) (out-of-town counsel rates permissible when local expertise unavailable)
  • Missouri v. Jenkins by Agyei, 491 U.S. 274 (Sup. Ct. 1989) (clerical tasks should not be billed at paralegal rates)
Read the full case

Case Details

Case Name: Birge v. Brumbaugh & Quandahl, P.C., LLO
Court Name: District Court, D. Nebraska
Date Published: Feb 20, 2014
Docket Number: 8:13-cv-00008
Court Abbreviation: D. Neb.