Frazier v. Absolute Collection Service, Inc.
767 F. Supp. 2d 1354
N.D. Ga.2011Background
- FDCPA action by Frazier against Absolute Collection Service, Inc. (N.C. corporation) in ND Ga seeking statutory damages, fees, and costs.
- Plaintiff filed July 7, 2010; service on defendant August 2, 2010; defendant failed to answer, clerk entered default.
- Magistrate Judge recommended granting default judgment; District Judge Thomas Thrash, Jr. adopted and granted.
- Judgment awards: $1,000 statutory damages, $1,430 in attorney's fees, $385 in costs.
- Factual basis: defendant used mail/phone to collect a hospital bill; messages left without identifying themselves or stating debt collection purpose; one message recorded with defendant’s phone number and hours.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendant’s conduct violated the FDCPA | Frazier alleges collection activity on a consumer debt without proper disclosures. | Absolute likely contends no FDCPA violation occurred due to lack of explicit content in messages. | Yes; FDCPA violations established (D(6) and E(11)). |
| Whether Absolute is a debt collector under the FDCPA | Defendant uses mails/phones to collect debts; regular collection activity. | Defendant argues it is not a collector for purposes of the FDCPA. | Yes; defendant qualifies as a debt collector. |
| What damages are warranted for FDCPA violations | Requesting the statutory maximum of $1,000 plus fees and costs. | Argues for lesser damages or contesting fees. | Plaintiff awarded $1,000 in statutory damages, along with $1,430 in attorney’s fees and $385 in costs. |
| Attorney’s fees and costs are reasonable | Fees calculated via lodestar at $325/hour for 4.4 hours; costs $385. | Contends fees/costs should be reduced. | Fees and costs approved as reasonable (4.4 hours; $325/hour; total $1,430; costs $385). |
| Whether default judgment proper on the record | Uncontested facts support liability and damages. | No response; argues potential defects with default. | Default judgment warranted; liability and damages established on the record. |
Key Cases Cited
- Edwards v. Niagara Credit Solutions, Inc., 586 F. Supp. 2d 1346 (N.D. Ga. 2008) (unidentified calls can violate FDCPA §1692(d)(6) when not disclosing debt collection status)
- Nishimatsu Const. Co., Ltd. v. Houston Nat'l Bank, 515 F.2d 1200 (5th Cir. 1975) (default judgments require a basis in pleadings and supporting materials)
- Heintz v. Jenkins, 514 U.S. 291 (U.S. 1995) (FDCPA conception of debt collection activity)
- Loranger v. Stierheim, 10 F.3d 776 (11th Cir. 1994) (lodestar method for calculating attorney's fees)
- Norman v. Housing Authority of City of Montgomery, 836 F.2d 1292 (11th Cir. 1988) (guidance on determining reasonable attorney's fees)