The main appeal challenges an award of attorneys’ fees in a protracted suit under the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692
et seq.
An earlier stage of the litigation occupied us in
Dechert v. Cadle Co.,
The plaintiff was entitled to an award of fees and costs only if his suit could be characterized as a “successful action to enforce the foregoing liability,” 15 U.S.C. § 1692k(a)(3), meaning liability for either actual or statutory damages. The general, indeed all but invariable, rule is that to be a prevailing party and therefore entitled to an award of fees and costs, you either must obtain a judgment that provides you with formal relief, such as damages, an injunction, or a declaration that you can use if necessary to obtain an injunction or damages later, or must obtain a settlement that gives you similar relief.
Buckhannon Board & Care Home, Inc. v. West Virginia Dept. of Health & Human Resources,
In Buckhannon the Supreme Court rejected the “catalyst” theory, whereby a lawsuit that did not eventuate in any formal relief or settlement could be deemed “successful” if it prompted the defendant to change his ways. This lawsuit, so far as appears, had not even that effect.
Now it is true that none of the cases we have cited arose under the Fair
The defendant has not argued directly that the plaintiff was not a prevailing party in this litigation. But it argues that the plaintiff should receive ■ a zero award of attorneys’ fees and costs because the suit accomplished nothing, and that is close enough to preserve the issue, which is anyway a pure, undebatable issue of law. We occasionally consider such issues even when they were not presented to the district judge.
Niedert v. Rieger,
The defendant’s cross-appeal asks us to impose sanctions on the plaintiff for bringing this suit in bad faith. The denial of attorneys’ fees and costs is sanction enough.
Reversed.
