Robbins v. Med-1 Solutions, LLC, No. 20-1343 (7th Cir. 2021)Annotate this Case
Robbins defaulted on a debt to a hospital for services provided to her children. After MED-1, hired to collect the debt, filed a small-claims action, Robbins paid the $1,499 debt but refused to pay $375 attorney’s fees as required by the agreement she signed with the hospital. MED-1 then incurred more attorney’s fees (fees-on-fees) attempting to recover the initial attorney’s fees. The Indiana small-claims court ordered Robbins to pay both the initial attorney’s fees and the fees-on-fees. Robbins’s appeal initiated a de novo proceeding, so MED-1 filed a new complaint.
Robbins filed a federal suit against MED-1 under the Fair Debt Collection Practices Act, 15 U.S.C. 1692–1692p. A magistrate stayed the case pending the outcome of the state case, which was eventually dismissed for failure to prosecute. In federal court, Robbins raised res judicata, arguing that the state court’s dismissal precluded MED-1 from claiming that the contract required her to pay attorney’s fees and fees-on-fees. Alternatively, she advanced an argument that she was not required to pay fees-on-fees and that MED-1 violated the Act by trying to collect sums she did not owe. The Seventh Circuit affirmed judgment for MED-1. The Indiana court’s dismissal does not have preclusive effect. Because Robbins’s contract with the hospital required her to pay all collection costs, including attorney’s fees, MED-1 did not violate the FDCPA by attempting to collect fees-on-fees.