Robinson v. Sherman Financial Group, LLC
2:12-cv-00030
E.D. Tenn.Apr 4, 2016Background
- Plaintiff Ralph Robinson sued multiple debt-collection defendants under the FDCPA, alleging false, deceptive, or misleading communications; jury found only Hosto liable and awarded $1,000 in statutory damages.
- Plaintiff sought $110,623.75 in fees through trial and $14,970 post-trial plus $387.80 costs; Magistrate Judge recommended $45,000 in fees and $387.80 costs.
- Both parties objected; district court conducted de novo review of Plaintiff’s objections to the recommended fee amount.
- Court applied the lodestar method (reasonable hours × reasonable hourly rate), excluding hours that were excessive, redundant, or unrelated to successful claims.
- Court set hourly rates at $250 for lead counsel Alan Lee and $200 for co-counsel Everett Mechem, excluded specific hours tied to unrelated licensing claims and other excessive entries, applied a 15% reduction to the lodestar for residual unrelated work, and awarded $53,350.25 in fees plus $387.80 costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to attorney’s fees under FDCPA | Robinson is entitled to reasonable fees after prevailing on §1692e claim against Hosto | Hosto did not dispute entitlement but contested amount | Court: Robinson entitled to fees; amount calculated by lodestar with exclusions/adjustment |
| Reasonable hourly rates | Counsel requested $325 (Lee) and $275 (Mechem) as contingency-market rates | Hosto argued rates were excessive compared to local market | Court: adopted local-market rates of $250 (Lee) and $200 (Mechem) based on prior district awards and experience |
| Compensable hours for time spent against other defendants | Robinson argued hours on overlapping claims and common facts against multiple defendants are compensable | Hosto argued only time directly related to Hosto is compensable; many hours were for LVNV-related claims | Court: excluded hours spent on distinct LVNV-only issues (default motion, licensing claim), allowed time for overlapping work, and removed other excessive/duplicative entries |
| Adjustment to lodestar for degree of success & residual unrelated work | Robinson sought full lodestar; argued shared factual core justified fees for most work | Hosto urged substantial reduction because most effort targeted LVNV defendants and unsuccessful claims | Court: after excluding specific hours, applied a 15% downward adjustment to account for remaining licensing-related work not specifically segregable; awarded $53,350.25; costs $387.80 granted |
Key Cases Cited
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method; exclude hours not "reasonably expended")
- Fox v. Vice, 563 U.S. 826 (2011) (fee-shifting aims to do "rough justice")
- Wayne v. Vill. of Sebring, 36 F.3d 517 (6th Cir. 1994) (successful plaintiff may recover fees for work on related claims against dismissed defendants when common core of facts exists)
- Mary Beth G. v. City of Chicago, 723 F.2d 1263 (7th Cir. 1983) (hours on a claim relating to several defendants may be counted if nonliability was not frivolous)
- Cobb v. Miller, 818 F.2d 1227 (5th Cir. 1987) (endorsing Mary Beth G. where claims against different defendants arise from same course of conduct)
- Adcock-Ladd v. Sec'y of Treasury, 227 F.3d 343 (6th Cir. 2000) (reasonableness standard for fee awards; lodestar foundation)
- Pennsylvania v. Del. Valley Citizens’ Council for Clean Air, 478 U.S. 546 (1986) (lodestar strongly presumed reasonable)
