Robbins v. Med-1 Solutions, L.L.C.
| Decision Date | 09 March 2016 |
| Docket Number | CAUSE NO. 1:14-cv-1703-DKL-SEB |
| Parties | ANN ROBBINS, Plaintiff, v. MED-1 SOLUTIONS, L.L.C., Defendant. |
| Court | U.S. District Court — Southern District of Indiana |
Defendant Med-1 Solutions, L.L.C.'s motion to dismiss comes before the Court for decision. Plaintiff Ann Robbins sues Med-1 for violating the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq., ("F.D.C.P.A.") by its attempts to collect from her a personal debt for medical services that she owed to Community Health Network, Med-1's client.
The following factual summary is taken from the allegations of the First Amended Complaint [doc. 16] ("Amended Complaint"); exhibits attached to the pleadings;1 documents the Amended Complaint incorporates by reference; matters of which the Court may take judicial notice; official records; concessions or admissions by Ms. Robbins in court filings; additional facts set out in the briefs, if consistent with the pleadings; and evidence that is attached to the motion briefs that are integral to and relied upon in the Amended Complaint and not contested as inauthentic. See Santana v. Cook County Board of Review, 679 F.3d 614, 619 (7th Cir. 2012); Hecker v. Deere & Co., 556 F.3d 575, 582 (7th Cir. 2009); Tierney v. Vahle, 304 F.3d 734, 738 (7th Cir. 2002); Henson v. CSC Credit Services, 29 F.3d 280, 284 (7th Cir. 1994). Allegations of the Amended Complaint that Med-1 has admitted are not cited.
When Ms. Robbins received medical treatment through Community Health Network ("Community Health"), she signed a Patient Consent Agreement [doc. 19-2] ("Agreement").2 The Agreement contains this term: "In the event I do not pay such charges when due, I agree to pay costs of collection, including attorney fees and interest." Agreement, p. 2, "Responsibility for Payment" section, ¶ 3. Acting as a debt collector and Community Health's agent,3 Med-1 filed suit against Ms. Robbins in the Lawrence Township Small Claims Court in Marion County, Indiana, on July 1, 2014, Cause no. 49K03-1407-SC-003946. Med-1's notice of claim, by which it initiated the small-claims action,4 stated that the balance for medical services owed to Community Health was $1,499. Med-1 sought an additional twenty-five percent, or $375, for attorney's fees. Case Management Plan [doc. 21] ("CMP"), § II. B. (); Amended Complaint, ¶ 12. Attached to the notice of claim was Med-1's Affidavit of Debt, which states, in part: "The last payment to Med-1 was received on 5-12-14 in the amount of $266.66 ."5 Affidavit of Debt [doc. 10-4], ¶ 3. The Affidavit of Debt also states that the unpaid balance due to Community Health was $1,499. Id., ¶ 2. At that time, Ms. Robbins had not made any payments to Med-1 and had never made a payment to Community Health in the amount of $266.66. Amended Complaint, ¶¶ 9, 10. Med-1 admits that it erred in the amount of Ms. Robbins' last-payment and alleges that the amount of her last payment was actually one dollar more — $267.66, not $266.66. Amended Answer, ¶¶ 9, 10. Med-1 also alleges that Ms. Robbins made that last payment to Community Health directly, not to Med-1, id., but, as discussed below, it denies that this assertion of the Affidavit of Debt was false, deceptive, misleading, or an unfair or unconscionable means to collect or attempt to collect the debt, id.6
On September 14, 2014, Ms. Robbins paid the $1,499 remaining balance of the debt principal. Amended Complaint, ¶ 11; CMP, § II. B. She disputed, and did not pay, the requested attorney's fees and costs. Id. Nine days later, on September 23, 2014, Ms. Robbins appeared for the "First Hearing" in the Small Claims Court.7 At some point in relation to this hearing, Med-1's attorney told Ms. Robbins that, despite her having paid the balance of the principal on the debt, she was still responsible for the $375 of attorney's fees and $86 of costs. Ms. Robbins alleges that the attorney also told her that "he had 'now spent three more hours' working on Plaintiff's case, which Plaintiff took as a threat that if she did not pay the attorney fees at that time that she would be responsible for additional attorney fees." Amended Complaint, ¶ 13. Ms. Robbins alleges that the attorney's statement that he had spent three more hours working on her case was false. Id., ¶ 14. The Small Claims Court set the case for trial on fees and costs for October 28, 2014.
Less than a month later, on October 19, 2014, Ms. Robbins filed the present suit against Med-1 for violations of the F.D.C.P.A.
At the trial in Small Claims Court, on October 28, 2014, Med-1 submitted an Affidavit and Motion for Attorney Fees [docs. 13-1 (exhibit A to Ms. Robbins' proposed amended complaint) and 10-3 (Original Answer, attachment C)] ("Fees Affidavit"). This Fees Affidavit states that "Prior to receiving services, the defendant in this action signed an admission sheet agreeing to be liable for cost of collections and reasonable attorney fees if this amount remained unpaid." Id., ¶ 2. In this affidavit, Med-1's attorney averred that he performed 4.6 hours of attorney services on the collection of Ms. Robbins' debt, he itemized the tasks performed, and he averred that the hours expended were reasonable and necessary. Id., ¶¶ 3, 4. He also averred that an hourly rate of $375 was a reasonable rate for an attorney of comparable expertise and experience. Id., ¶ 4. A total of $1,725 was requested. Id. Ms. Robbins alleges that the Fees Affidavit's description of her agreement to pay fees and its itemization of attorney hours are false. Amended Complaint, ¶¶ 17 and 18. On that same day, the Small Claims Court entered judgment in favor of Med-1 for attorney's fees in the requested amount of $1,725. Amended Complaint, ¶ 20; Amended Answer, ¶ 20; Judgment/Order [docs. 10-2 (Original Answer, attachment B) and 19-3 (Brief, attachment C)].
On December 9, 2014, Ms. Robbins filed a notice of appeal in the Smalls Claims Court. Small Claims Court Chronological Case Summary [docs. 10-1, 19-4 (includes later entries)] ( ).8
On or about January 19, 2015, Med-1 served on Ms. Robbins Plaintiff's Motion for an Award of Additional Attorney's Fees [doc. 13-1, p. 7 ] ("Add'l Fees Motion"). In this served motion, Med-1 requests an additional award of attorney's fees in order to prepare and conduct proceedings supplemental to the October 28, 2014, judgment because, it asserts, "[e]fforts have been unsuccessful in attempting to get the Defendant to pay the judgment amount." Id., ¶¶ 3, 5. The served motion asserted that an additional fifteen minutes of attorney time was required, for a total of $93.75 of additional fees. Id., ¶ 5. Ms. Robbins states that the state-court docket does not show that the Add'l Fees Motion was filed, which "may mean its filing was rejected." Response, at 8 n. 2.
The later S. Claims Ct. CCS [doc. 19-4] shows that a "Motion for Proceedings Supplemental" was filed on January 20, 2015 (the day after the certificate-of-service date for the Add'l Fees Motion) but no motion seeking, or an order awarding, additional attorney's fees at this time, and no order or docket entry rejecting or striking such a motion.9
The S. Claims Ct. CCS [doc. 19-4], shows that, on February 10, 2015, about two months after Ms. Robbins filed her notice of appeal, the Small Claims Court granted an "Appeal Request" and sent it to the Superior Court. Two days later, on February 12, 2015, the Small Claims Court scheduled a proceeding supplemental for March 24, 2015, presumably in response to Med-1's January 20, 2015, motion. The next day, February 13, 2015, Ms. Robbins filed answers to interrogatories. (Presumably, the interrogatories were sent as part of Med-1's motion for proceeding supplemental.)
Also on February 13, 2015, the Marion County Superior Court docketed Ms. Robbins' appeal. See online Marion County Superior Court chronological case summary, at https://public.courts.in.gov/mycase/#/vw/CaseSummary/eyJ2Ijp7IkNhc2VUb2tlbiI6IlltWXlORGt4TmpFMU1qSXdPakF3T0RVeE56QXlNR1k9In19 ("Superior Ct. CCS"). Med-1 filed its complaint in the Superior Court on March 5, 2015.10
The Small Claims Court held a proceeding-supplemental hearing on March 24, 2015. The hearing journal entry records only that Online S. Claims Ct. CCS. No action regarding the proceeding supplemental is noted on the docket for that date.
In the Superior Court appeal, Ms. Robbins filed her answer on May 29, 2015. Online Superior Ct. CCS. Med-1 filed a motion for default judgment on June 1, 2015, and moved to withdraw it three days later, which motion was granted on June 16, 2015. Id.
The next activity was back in the Small Claims Court. The docket entry for August 12, 2015, reads Online S. Claims Ct. CCS. Next is a "Hearing Journal Entry" for September 2, 2015: Id. The last two entries on the Small Claims Court docket, both for September 29, 2015, are "Motion for Allowance of Fees Filed" and "Order Granting Motion for Allowance of Fees." Online Superior Ct. CCS.
The next and last activity was in the Superior Court on the appeal. The last two entries on the docket record the filing and granting of a motion to withdraw the appearance of one of Med-1's attorneys, on February 8 and 9, 2016. Id.
Ms. Robbins claims that Med-1's actions in attempting to collect her debt violated the F.D.C.P.A., specifically, 15 U.S.C. §§ 1692e and 1692f. Section 1692e...
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