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Circuit Court upholds attorney-fee reduction

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The 7th Circuit Court of Appeals wasn't swayed by an attorney's arguments that the amount of attorney's fees he was entitled to shouldn't have been reduced by nearly $90,000.

In James and Christy Gastineau v. David M. Wright and Wright & Lerch, No. 09-1003, the Gastineaus' attorney Robert Duff appealed the District Court's corrected order on the Gastineaus' motions for attorney's fees. Duff was the third attorney to work on their Fair Debt Collection Practices Act case, in which he negotiated a final settlement of $45,000. He wanted $140,000 in fees, but the District Court reduced it to $52,000 after evaluating Duff's experience and performance.

Duff claimed the judge erred in determining a reasonable fee by reducing his billable hour rate from $250 to $150 based on his lack of experience and claimed the reduction in the number of hours billed constituted an impermissible double penalty.

The Circuit judges agreed with the District Court's ruling, finding the deduction was warranted. Duff joined the case three years after the action began and was the third attorney to work on the case, so he came on after substantial discovery work and motions practice was completed. He was also inexperienced with FDCPA actions, so the District Court found it was inappropriate to bill for learning this area of law. An attorney also testified Duff's rates were high for that area of law.

"This is clearly the case of an experienced district judge that considered the various factors in setting a reasonable attorney's fee and provided a sufficient explanation," wrote Judge Michael Kanne.

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  1. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  2. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  3. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  4. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

  5. I will agree with that as soon as law schools stop lying to prospective students about salaries and employment opportunities in the legal profession. There is no defense to the fraudulent numbers first year salaries they post to mislead people into going to law school.

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