473 F.Supp.3d 889
W.D. Wis.2020Background
- Plaintiff Ian Humphrey sued Navient Solutions, Inc. under the Fair Credit Reporting Act (15 U.S.C. § 1681s-2(b)(1)(A)) for failing to reasonably investigate disputes that his student loans were reported "past due" after he applied for and obtained a disability discharge.
- The Seventh Circuit held the credit reports were inaccurate and a reasonable jury could find Navient could have corrected the error with a proper investigation; a jury then awarded $180,000 compensatory and $120,000 punitive damages to Humphrey.
- The district court set aside punitive damages under Rule 50 and entered judgment on the $180,000 compensatory award.
- Navient moved for a new trial or remittitur arguing the $180,000 compensatory award was excessive; Humphrey moved for attorneys’ fees and costs under the FCRA.
- The court denied Navient’s motion for a new trial/remittitur, finding the compensatory award rationally related to the evidence and comparable to prior awards, and awarded Humphrey $55,440 in attorney fees and $1,074.32 in costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Excessiveness of compensatory damages | $180,000 compensates pain from untreated wisdom tooth and emotional distress from credit-report errors | Award is excessive and not supported by causation; seek remittitur to $25,714.20 or new trial | Denied—verdict rationally related to evidence and roughly comparable to similar awards |
| Causation for tooth pain damages | Humphrey contends Navient’s reporting prevented credit/surgery and caused severe pain and behavior changes | Navient: Humphrey did not actually apply for credit; other reasons (insurance, low income) could explain denial | Causation sufficient: testimony that creditor discouraged application, jury credited plaintiff over conflicting testimony |
| Emotional-distress proof | Testimony (plaintiff and girlfriend) described isolation, loss of appetite, suicidal ideation tied to reporting errors | Navient: testimony conclusory, premised on preexisting mental illness, or tied to litigation (not compensable) | Admissible and sufficient — no special rule requiring expert testimony; defendant forfeited preexisting-condition instruction |
| Attorney fees: hourly rate | Counsel sought $350/hr based on experience/survey | Navient argued lower market rates | Court reduced rate to $300/hr as more consistent with local awards |
| Attorney fees: hours billed | Humphrey sought fees for 207.6 hrs; defendant challenged vague entries, work for dismissed defendants, clerical tasks | Court deducted 13.1 hrs for vague communications, 8 hrs for discovery of dismissed defendants, 1.7 hrs for clerical work; approved 184.8 hrs | |
| Costs | Plaintiff sought $1,074.32 for transcripts and copying | Navient did not dispute | Awarded in full as taxable costs under 28 U.S.C. § 1920 |
Key Cases Cited
- Green v. Howser, 942 F.3d 772 (7th Cir. 2019) (standards for reviewing excessiveness of jury damages)
- Farfaras v. Citizens Bank & Trust of Chicago, 433 F.3d 558 (7th Cir. 2006) (compare awards to similar cases for abuse-of-discretion review)
- Deloughery v. City of Chicago, 422 F.3d 611 (7th Cir. 2005) (upholding substantial emotional-distress award as comparable precedent)
- Pickett v. Sheridan Health Care Center, 610 F.3d 434 (7th Cir. 2010) (no special evidentiary rule for emotional-distress testimony)
- Sarver v. Experian Info. Sols., 390 F.3d 969 (7th Cir. 2004) (plaintiff must describe injury circumstances in reasonable detail)
- Wantz v. Experian Info. Sols., 386 F.3d 829 (7th Cir. 2004) (similar evidentiary discussion on distress testimony)
- E.E.O.C. v. Ilona of Hungary, Inc., 108 F.3d 1569 (7th Cir. 1997) (defendant bears burden to show damages award excessive)
- Tchemkou v. Mukasey, 517 F.3d 506 (7th Cir. 2008) (must describe subject matter of internal attorney communications to recover fees)
- Montanez v. Simon, 755 F.3d 547 (7th Cir. 2014) (deductions appropriate for vague billing and clerical tasks)
- Alliance to End Repression v. City of Chicago, 356 F.3d 767 (7th Cir. 2004) (prevailing plaintiffs may recover full fees despite interim losses)
- Nelson v. City of Chicago, 810 F.3d 1061 (7th Cir. 2016) ("take the plaintiff as you find him" rule on preexisting conditions)
- Richardson v. City of Chicago, 740 F.3d 1099 (7th Cir. 2014) (lodestar may be adjusted for degree of success)
- Stoleson v. United States, 708 F.2d 1217 (7th Cir. 1983) (emotional distress caused by litigation is not compensable)