Ricketson v. Advantage Collection Professionals, LLC

Background

Kelly L. Ricketson alleged that Advantage Collection Professionals, LLC, violated the Fair Debt Collection Practices Act while attempting to collect approximately $100 in debt. Ricketson accepted Advantage’s offer of judgment for $1,001 plus costs and reasonable attorney fees on December 30, 2021.

After the offer’s acceptance, Ricketson’s attorney, Michael Sheridan, and Advantage disputed the amount of attorney fees and costs. Sheridan did not provide his billing records when Advantage requested information about the claimed fees. He later sought $10,000 and stated that he was authorized to settle the fee dispute for $9,001, even though his billing records showed lower amounts at the relevant times. Sheridan also delayed filing a satisfaction of judgment after Advantage paid the $1,001 judgment.

In an earlier order, the court granted in part and denied in part Ricketson’s request for fees and costs, limiting her recoverable fees to work performed through acceptance of the offer of judgment. The court also granted Advantage’s request for fees under 28 U.S.C. § 1927 in an amount to be determined and directed Advantage to file supporting materials.

Section 1927 fees

Section 1927 allows a court to require an attorney to personally pay additional costs and attorney fees caused by unreasonably and vexatiously multiplying court proceedings. The court found that Sheridan’s refusal to provide relevant billing information and his use of procedural rules to obstruct and prolong the fee dispute met that standard. The court also found that his conduct continued after the earlier order, including serving discovery seeking documents that the court considered unnecessary or irrelevant to Advantage’s fee request.

The court concluded that Advantage was entitled to reasonable attorney fees for work performed after December 30, 2021, through October 21, 2022, the filing date of the present motion. It approved the hourly rates charged by Advantage’s attorneys, Michael Klutho and Patrick Newman, and found that their 45.7 hours of work were reasonable. The resulting fee amount was $12,133.35.

Disposition

The court granted in part and denied in part Advantage’s motion for attorney fees and costs. It granted the request for attorney fees and awarded Advantage $12,133.35 pursuant to 15 U.S.C. § 1692k(a)(3). It denied the request for costs as moot because Advantage withdrew that request. The court ordered Michael Sheridan, rather than Ricketson, to personally satisfy the $12,133.35 fee award under 28 U.S.C. § 1927, and directed that judgment be entered accordingly.