Medical Recovery Svcs. v. Olsen
Annotate this CaseIn 2011, Medical Recovery Services, LLC (“the Collection Agency”), filed this action against defendants Allison and Nathan Olsen to recover on two entities’ unpaid medical bills. In 2012, the parties stipulated that the Collection Agency could recover a judgment against defendants and that it would forbear executing on the judgment if the defendants paid $100 per month between the 25th and 30th of each month until the judgment was paid. The court entered a judgment providing that the Collection Agency could recover from the Defendants the sum of $4,973.46. Defendants failed to make any payment on the judgment, and the Collection Agency attempted to execute on the judgment. The Collection Agency sought to execute on defendants’ bank account, but the account had been closed. The Collection Agency then sought a continuing garnishment to obtain Mr. Olsen’s disposable earnings from Petersen, Moss, Hall & Olsen, but that garnishment was returned unsatisfied because “Defendant is a partner in the firm, not an employee.” The Collection Agency also sought to execute on Mr. Olsen’s partnership interest, but the writ was returned unsatisfied because Mr. Olsen’s equity in the partnership was stated to be zero. The Collection Agency then sought to depose Stephen Hall, the partner in the law firm who had signed the responses to the writs of garnishment. The Collection Agency agreed to forgo taking his deposition if Hall would make $250 bi-monthly payments until the judgment was paid in full. Hall made those payments, but the Collection Agency would not accept final payment endorsed "payment in full" because it wanted to seek post-judgment attorney fees. Defendants filed a motion seeking to compel the Collection Agency to record a satisfaction of judgment in every county in which it had recorded the original judgment. The Agency responded by filing for an award of post-judgment fees it incurred trying to collect on its judgment. The Agency's motion was denied, and the Agency estopped from further collection of fees, citing the agreement reached in satisfying the judgment. The district court upheld the magistrate court's judgment. Finding that Hall only agreed to satisfy the judgment, the Supreme Court concluded the district court erred in affirming the magistrate. The case was remanded for further proceedings.
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