Nicholas v. Allianceone Receivables Management, Inc.

Summarized by Michael Pugh , Thompson, O'Brien, Kemp & Nasuti, PC
14 years 1 month ago

Citation:

11-13764; D.C. Docket No. 0:10-cv-60783-KMM

Tag(s):

Ruling:

The Eleventh Circuit Court of Appeals affirmed the District Court's holding that where a consumer prevails in a lawsuit brought under the Fair Debt Collection Practices Act, the consumer may not recover fees paid for court-ordered mediation.

Procedural context:

A magistrate judge found that a consumer who brought a lawsuit under the Fair Debt Collection Practices Act was entitled to recover fees for court-ordered mediation. The district court ruled that the consumer was not entitled to mediation fees because the costs are not taxable under 28 U.S.C. Sect 1920. The consumer appealed the District Court's ruling.

Facts:

Plaintiff/Appellant ("Nicholas") alleged that Defendant/Appellee ("Allianceone") sought to collect on an alleged debt owed by Nicholas to Allianceone. Nicholas alleged that Allianceone's agents left an excessive number of messages on Nicholas' voice mail and that Allianceone failed to notify Nicholas that it was a "debt collector" in violation of federal and Florida state law. Nicholas brought an action under the Fair Debt Collection Practices Act ("FDCPA") and the Florida Collection Practices Act, Fla. Stat. 559.55 et seq. against Allianceone. The parties settled the case for $2,001 plus reasonable attorney's fees and costs to be determined by the court. Nicholas filed a verified motion for an award of attorneys' fees and costs in which Nicholas sought fees in the amount of $3,314.50 for 9.74 hours of work (at an hourly rate of $350/hour) and costs in the amount of $991.75. Nicholas also sought fees in the amount of $2,156 for 6.16 hours of work (at an hourly rate of $350/hour) incurred in litigating the issue of attorneys' fees. The case was referred by the district court to a magistrate judge pursuant to 28 U.S.C. Sect. 636 et. seq. The magistrate judge determined that Nicholas was entitled to an award of attorney fees in the total amount of $4,689 representing $2,841 for 9.47 hours of work (at an hourly rate of $300/hour) and $1,848 for 6.16 hours (at an hourly rate of $300/hour). The magistrate also found Nicholas was entitled to $430 in costs representing the filing fee of $350, service calls of $30 and costs associated with a cancelled deposition ($50).

Judge(s):

Dubina, Pryor and Kravitch

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