Portalatin v. Blatt, Hasenmiller, Leibsker & Moore LLC
1:14-cv-08271
N.D. Ill.Oct 25, 2017Background
- Portalatin sued Blatt and Midland under the FDCPA, alleging improper venue: Blatt sued in Cook County First Municipal District instead of the plaintiff’s Fourth Municipal District. Portalatin settled with Midland; case proceeded against Blatt.
- Court granted Portalatin summary judgment on liability, rejecting Blatt’s "bona fide error" defense; the Seventh Circuit later rejected that defense en banc in Oliva.
- Trial proceeded only on statutory damages; Portalatin sought $1,000, the jury awarded $200. Judgment entered for Portalatin; Blatt appealed but appeal stayed pending Oliva.
- Portalatin sought attorney’s fees and $772.95 in costs under 15 U.S.C. § 1692k(a)(3). Blatt contested the reasonableness of the requested fees.
- Three attorneys worked on the case: Badwan (primary, requested $375/hr for 161.5 hours), Wooten (trial counsel, requested $550/hr for 64.5 hours sought), and Zambon (time not sought). Blatt produced its own billing showing comparable rates and hours.
- Court evaluated reasonable hourly rates and hours, reduced Wooten’s rate and hours, made modest reductions to Badwan’s hours, and awarded $69,393.75 in attorney’s fees plus $772.95 costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Portalatin is a prevailing party entitled to fees | Portalatin prevailed on liability and obtained statutory damages | Blatt did not dispute prevailing-party status | Portalatin is a prevailing party under §1692k(a)(3) |
| Reasonable hourly rates for attorneys | Badwan $375/hr; Wooten $550/hr | Blatt challenges Wooten’s $550 and contends rates are excessive | Approved Badwan at $375; set Wooten at $425 due to lack of supporting evidence for $550 |
| Reasonable number of hours expended | Sought stated hours for Badwan and Wooten as reasonably necessary | Blatt argues duplication and excessive hours given overlap with other similar cases | Approved 148.5 hours for Badwan (reduced modestly); reduced Wooten’s hours by half to 32.25 as excessive; further modest reductions for clerical/status and fee-petition time |
| Whether fee award should be reduced for limited success | Portalatin argues full fee justified by liability win, statutory cap on damages, and public-interest vindication | Blatt argues small damages ($200) mean limited success and fee reduction warranted | Court declined to reduce fee for limited success: liability ruling and public interest support full award |
Key Cases Cited
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method and reasonableness factors for fee awards)
- Gastineau v. Wright, 592 F.3d 747 (7th Cir. 2010) (apply Hensley to FDCPA fees)
- Oliva v. Blatt, Hasenmiller, Leibsker & Moore, LLC, 864 F.3d 492 (7th Cir. 2017) (bona fide error defense rejected en banc)
- Pickett v. Sheridan Health Care Ctr., 664 F.3d 632 (7th Cir. 2011) (criticizing use of Laffey Matrix for Chicago rates)
- Barrow v. Falck, 977 F.2d 1100 (7th Cir. 1992) (defendant cannot litigate tenaciously then complain about plaintiff’s fees)
- City of Riverside v. Rivera, 477 U.S. 561 (1986) (public-interest considerations in fee awards)
- Zagorski v. Midwest Billing Servs., Inc., 128 F.3d 1164 (7th Cir. 1997) (public policy and fee considerations in consumer litigation)
- Spegon v. Catholic Bishop of Chicago, 175 F.3d 544 (7th Cir. 1999) (billing judgment and avoiding duplicative fee requests)
