Mahar v. GC Services, LP
1:14-cv-00582
W.D. Tex.Apr 13, 2015Background
- This is a FDCPA/TDCA suit by Mahar against GC Services, L.P. for repeated phone calls and wage garnishment threats.
- GC Services served a Rule 68 offer of judgment on August 14, 2014 offering $1,000 plus costs and attorney’s fees to Mahar.
- Mahar accepted the offer on August 28, 2014; fees and costs were later disputed.
- Mahar sought $2,100 in attorney’s fees and $400 in costs; GC Services argued only $750 in fees and that costs were appropriate at $400.
- The magistrate judge recommended a total award of $2,500 in attorney’s fees and costs, plus $1,000 in statutory penalties, under an approved offer of judgment.
- The court emphasized the reasonableness of Mahar’s fee request and criticized GC Services’ conduct and tone in its fee briefing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reasonableness of fees | Mahar’s fees ($2,100) are reasonable after billing judgment. | GC Services argues the fees are inflated and unnecessarily high. | $2,500 total (fees and costs) deemed reasonable under Johnson factors. |
| Clerical vs. attorney work | Billing records show attorney work; four attorneys involved was reasonable. | Most work was clerical and could be performed by paralegals. | Court found lead attorney must perform actual legal work; billing time considered reasonable within the fee award. |
| Impact of offer of judgment | Offer did not bar fee recovery; fees awarded consistent with the offer and acceptance. | ||
| Conduct in fee dispute | GC Services’ tone and accusations were inappropriate. | Court noted inappropriate tone but did not reduce fees on that basis. |
Key Cases Cited
- Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974) (factors for determining reasonable attorney’s fees (Johnson factors))
- Thomas v. Arn, 474 U.S. 140 (1985) (statutory standards for awarding fees and de novo review limits)
- Battles v. United States Parole Comm’n, 834 F.2d 419 (5th Cir. 1987) (procedure for objections to magistrate recommendations)
