N.C. Court of Appeals: Dodeka, L.L.C. v. Cobb- Standard for Attorneys’ Fees in Consumer Rights Action

Summary: Plaintiff brought a complaint against Defendant for monies allegedly owed on a credit card.  Defendant answered and raised counterclaims, to which Plaintiff failed to reply.  Consequently,  default was entered on the counterclaims with $4,500.00 in actual damages, plus $17,912.11 in costs, including attorneys’ fees.  Defendant appealed, questioning, among other things, the reasonableness of the attorney’s fees. The Court of Appeal  held that the standard for reviewing an award of attorneys’ fees was that "the record must contain findings of fact as to the time and labor expended, the skill required, the customary fee for like work, and the experience or ability of the attorney based on competent evidence."  West v.  Tilley, 120 N.C. App.  145 (1995).  Agreeing with the trial court that Defendant’s attorney had "fastidiously documented the amount of time spent on all aspects of the case", the Court of Appeals upheld the award. Commentary: The N.C. Court of Appeals would likely benefit from adopting the fuller criteria found in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir. 1974) and often called a "lodestar fee", as such incorporates additional factors in determining the reasonableness of attorneys’ fees, especially as this appears to have raised federal FDCPA claims. For a copy of the opinion, please see: Dodeka, L.L.C. v. Cobb- Standard for Attorneys’ Fees in Consumer Rights Action.pdf