Lichter v. Bureau Of Accounts Control, Inc.

Background

Joseph Lichter sued Bureau of Accounts Control, Inc. (BAC), a debt collection agency, under the Fair Debt Collection Practices Act. Lichter alleged that BAC violated the law by attempting to collect a debt to Bergen Urological that he did not owe. BAC’s own business records supported Lichter’s position. The court previously granted Lichter summary judgment, finding that the undisputed facts established that he did not owe the debt and that BAC violated the Act by mailing him a collection letter.

After the summary-judgment ruling, BAC sought reconsideration, but that motion was denied. The parties could not resolve statutory damages, attorney’s fees, and costs. Lichter then moved for an order setting those amounts.

Statutory Damages

Lichter requested the maximum statutory award of $1,000. The court considered the number and persistence of the violations, their nature, and whether they were intentional. The opinion states that BAC allegedly sent two letters and made one phone call to Lichter’s wife. The court found no evidence that the violations were intentional or that BAC’s communications were threatening or abusive. But BAC’s own records should have alerted it that the collection letter was inaccurate, and BAC continued to pursue and aggressively litigate the collection matter.

The court awarded Lichter $750 in statutory damages.

Attorney’s Fees

Under the Fair Debt Collection Practices Act, a prevailing plaintiff may recover reasonable attorney’s fees and costs. The court used the “lodestar” method, which calculates a presumptively reasonable fee by multiplying reasonable hourly rates by the reasonable hours worked.

The court rejected BAC’s arguments that Lichter was not fully successful, that the lack of class certification prevented a settlement offer, that the billing records were not adequately supported, and that work by several attorneys could not be considered. The court also found that Lichter’s counsel had already removed 36 entries viewed as redundant or unnecessary.

The court set these hourly rates: $450 for partners Craig Sanders and David Barshay; $325 for associate Jonathan Cader; $300 for associate Erica Carvajal; $225 for associates Jitesh Dudani and Joenni Abreu; and $100 for paralegal work. It reduced Carvajal’s 2.7 hours of travel time to 50 percent of the applicable hourly rate. The court nevertheless awarded fees for all 101.7 requested billable hours, concluding that BAC’s aggressive litigation had made what should have been a routine claim more time-consuming.

The total attorney’s-fee award was $35,392.50.

Costs and Disposition

The court awarded Lichter $530 in costs: a $400 filing fee, $75 for service of process, and $55 in courthouse parking costs.

The court granted in part and denied in part Lichter’s motion for attorney’s fees. It awarded $750 in statutory damages, $530 in costs, and $35,392.50 in attorney’s fees. Judge Ramos directed the Clerk to issue judgment and close the case.