Court Awards Attorney’s Fees Under Electronic Funds Transfer Act After Rule 68 Offer is Accepted.
A federal court recently awarded a plaintiff $24,000 in attorney’s fees in an EFTA after the plaintiff accepted the defendant’s Rule 68 Offer of Settlement for just over $1,000. In Hynes v. McGoldrick, Inc. , ( cite or link) , the plaintiff sued a local restaurant, alleging its ATM did not provide the required on-screen and on-machine notices of any fees imposed on consumers by thee operator. After a year of litigation, the defendant offered plaintiff $1050 plus reasonable costs and fees as determined by the court. The defendant argued the amount of fees was unreasonable, excessive, and out of proportion to the amount in controversy. United States District Court Judge John Tunheim awarded all but $551 of the fees sought, holding a reasonable need not necessarily be proportionate to the amount of damages recovered. Cases involving federal fee-shifting statutes present unique challenges If you have any questions about effective approaches to addressing such claims, feel free to give us a call.