White v. Apple Bank For Savings

Background

Philip White and Susan White brought claims against Apple Bank for Savings under the Electronic Funds Transfer Act and New York law. The claims arose from allegedly unauthorized transfers from the Whites’ Apple Bank accounts. The case settled after an October 27, 2022 settlement conference. Under the settlement, Apple Bank agreed to pay the Whites reasonable attorneys’ fees and costs in an amount to be determined by the court.

The Whites moved for $225,649.50 in attorneys’ fees and $15,108.21 in costs, totaling $240,757.71. Their fee request included work by attorneys Bart J. Eagle and Richard J.J. Scarola, as well as a legal assistant.

Attorneys’ Fees

The court used the lodestar method, which generally calculates fees by multiplying reasonable hours by reasonable hourly rates. It found that $500 per hour was reasonable for both Scarola and Eagle, based in part on the Whites’ engagement agreement and the rates the Whites had actually paid. It also found that a $125 hourly rate for the legal assistant was reasonable.

The court found the 32.25 hours billed and paid before the contingent-fee arrangement reasonable, resulting in an award of $16,125 for that work. But it found excessive and unnecessary billing in the later work, including more than 50 hours spent researching and drafting a 20-page complaint and duplicative work by two experienced attorneys. Because the case settled at an early stage, the court reduced by 50% the hours billed by Scarola and Eagle for the contingent-fee portion of the case. It awarded $40,575 for Scarola’s reduced hours, $19,615 for Eagle’s reduced contingent-case hours, and $37.50 for the legal assistant’s hours. The total attorneys’ fee award was $76,352.50.

The court also declined to award fees for preparing the fee motion, finding that the settlement did not contemplate Apple Bank’s paying fees incurred in later proceedings to determine the fee amount. The court rejected Apple Bank’s argument that the contingency arrangement required a substantial reduction, explaining that the fee award and the agreement between the Whites and their lawyers were separate matters. The court noted, however, that counsel could not receive both the fee award and a contingency fee in a way that would create an improper windfall.

Costs

The Whites requested $15,108.21 in costs. The court awarded $14.66 for certified mail, $402 for the filing fee, $160.53 for process-server fees, and $13,281.25 for forensic-investigation invoices from StoneTurn Group, LLP. It rejected $1,249.77 in “ordinary charges” because counsel had not documented the actual out-of-pocket expenses supposedly covered by those charges. The total costs award was $13,858.44.

Ruling

Judge Stewart D. Aaron awarded the Whites $76,352.50 in attorneys’ fees and $13,858.44 in costs, for a total award of $90,210.94.