A District Court judge in New York has awarded plaintiffs in separate Fair Debt Collection Practices Act cases more then $15,000 in attorney’s fees and costs against the same defendant, after default judgments were entered nearly a year ago. What makes the rulings more interesting is that the cases were filed back in 2021, and settlements were reached in both cases back in 2022 before things fell apart.
The background: In both cases, the defendant was accused of sending text messages back in 2021 attempting to collect on unpaid debts to individuals other than the plaintiffs. In one case, the text message was sent to the plaintiff’s sister-in-law. In the other, the text was sent to one of the plaintiff’s clients. In both cases, the plaintiffs did not give the defendant permission to communicate information about the debt with anyone else.
- After the settlements were reached, it appears as though things went sideways for the defendant. Correspondence sent to the defendant related to the cases has been returned as undeliverable for more than a year. And, in both cases, attorneys representing the defendant have asked to withdraw from the case.
The ruling: In one case, Judge Lawrence J. Vilardo of the District Court for the Western District of New York awarded $6,570 in attorney’s fees and $402 in costs. In the other, the court awarded $9,130 in attorney’s fees and $487 in costs. In both rulings, the judge found that hourly rates of $300 for the plaintiff’s attorneys and $100 for paralegal time were reasonable.
- In explaining his decision, Judge Vilardo wrote that it had “carefully reviewed” the fee applications and found both the requested rates and the time expended to be appropriate, adding that fee awards in FDCPA cases are intended to encourage compliance with the law and ensure access to counsel for consumers.
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