Medical Recovery Svcs v. Siler

The district court erred in affirming the magistrate’s decision that Medical Recovery Services, LLC (MRS) was estopped from requesting attorney fees under Idaho Code section 12-120(5). MRS attempted a garnishment of Penny Siler’s wages, which was returned unsatisfied because Siler, a school bus driver who cared for her disabled husband and made an average of $499.00 a month, did not earn enough to garnish. MRS agreed to accept $10.00 per month for payment on a default judgment entered after Siler failed to pay a medical bill. Siler went to MRS’s counsel’s office and was told the payoff amount was $1,224.88. She paid that amount in cash. Six days later, counsel for MRS filed an application for supplemental attorney fees under Idaho Code section 12-120(5). Following the hearing, the magistrate court issued an order denying MRS’s application for supplemental attorney fees. In its order, the magistrate court, sua sponte, found that MRS was barred by quasi and equitable estoppel from asking for attorney fees because MRS had told Siler the “payoff amount” was $1,224.88, and MRS did not inform Siler it planned to pursue additional postjudgment fees. MRS appealed the magistrate’s decision to the district court. The district court affirmed, finding “the Magistrate Court retains discretion as to whether, or what amount of, attorney fees will be awarded,” and therefore was free to consider any factor it deemed appropriate, including quasi or equitable estoppel, in determining the amount of attorney fees. View "Medical Recovery Svcs v. Siler" on Justia Law