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Law Firm Gets Pushback on Billing Rates in Fee Request

February 1, 2022 | Posted in : Expenses / Costs, Fee Award Factors, Fee Dispute, Fee Request, Hourly Rates, Settlement Data / Terms

A recent Law 360 story by Chris Villani, “Ariz. Firm Gets Pushback on $370K Fee Bid: ‘Not WilmerHale’,” reports that a loan services company told a Massachusetts federal judge it shouldn't have to pay out nearly $370,000 in attorney fees and costs following a $30,000 settlement, saying during a hearing that the Arizona firm requesting the six-figure payout is "not WilmerHale."

Robert Sullivan settled his Fair Credit Reporting Act suit with Selene Finance LP in November, accepting a $30,000 offer of judgment. His attorney, David Chami of Price Law Group APC in Scottsdale, cited the prevailing rates for Boston-based consumer attorneys in asking U.S. Magistrate Judge M. Page Kelley to approve $365,195 in fees for attorneys, paralegals and clerks, plus another $4,576 in costs, for a total award of $369,771.

But Selene Finance's lawyers have balked at the fee request, telling Judge Kelley that Boston consumer attorneys with experience similar to Chami reel in closer to $350 per hour, as opposed to the $675 per hour he asked for.  "Even if you look at Massachusetts as a whole, the highest rate for a small firm lawyer — and Mr. Chami's firm is not WilmerHale, this is not a large firm — the highest rate in the entire state was $488 an hour," said Amy Hackett of Boston's Peckar & Abramson PC.

In justifying the reasonableness of $350 per hour, she cited similar cases worked on by Todd & Weld LLP, which she described as a "very sophisticated litigation firm in Boston," and Sergei Lemberg, a well-known consumer attorney.  "I have been practicing consumer litigation since 2009," Hackett said.  "I have never seen an award of $675 [per hour] for either a plaintiff's or a defendant's lawyer either issued or requested."

But Chami defended the request to Judge Kelley, who did not make a ruling during the hearing. He said the rates have to be based on what Boston attorneys of similar experience earn, not what he might charge a client in Phoenix.  Chami cited his consumer litigation chops, saying he had brought 15 cases to trial and is called frequently by other attorneys when they are faced with FCRA cases.

"I am not here to toot my own horn, but I am being asked to justify to the court why I should get the rates I get," he said, adding that the more than 600 hours he spent on the case were driven by the aggressive defense put forth by Selene Finance.  He bristled at the notion that he works for a small firm.  "We may not be White & Case, but we are a pretty large plaintiff's firm," Chami said.  "This isn't a small firm where you have one or two lawyers working out of a small office in a rural area."