Weeks v. Geiermann

Plaintiff-Appellant Sean Weeks appealed a summary judgment that dismissed his claims against Michael Geiermann and Collection Center, Inc. (collectively "Collection Center") for violations of the Fair Debt Collection Practices Act. In 2009, Plaintiff brought this action against the Center for its attempt to collect $3,034.21 in interest on a debt he owed to Medcenter One for clinic and hospital services. Plaintiff obtained medical services from Medcenter's clinic and hospital. According to billing records for the clinic, Plaintiff received services between 2002 and 2008 and was billed $6,752.46, of which his insurance paid $4,698.72. After an insurance adjustment of $1,427.26, Weeks was responsible for $626.48. Weeks paid $453.40, and after another adjustment of $2.03, $171.05 remained unpaid. In July 2009, attorney Geiermann on behalf of Collection Center sent Plaintiff a letter, demanding payment to the hospital for $4,481.22 and to the clinic for $171.05. The letter also demanded $3,003.28 in interest for the hospital and $30.93 in interest for the clinic. The district court granted Collection Center's summary judgment motion and dismissed Plaintiff's action, stating the case was "fairly straightforward." The court held there was no disagreement that Plaintiff had incurred a debt to Medcenter for medical services that remained unpaid which constituted a "legal indebtedness." The court further held that, according to Plaintiff's affidavit, he never received anything in writing from Medcenter indicating any interest would be assessed in the event of nonpayment of this debt after a specified period of time. The court concluded "as a matter of law, that [Collection Center was] rightfully entitled to collect interest from Weeks at the rate of six percent (6%) per annum on the legal indebtedness owed by Weeks to [Collection Center], as the assignee of Medcenter One." Upon review, the Supreme Court affirmed, concluding that a "medical services provider," who does not make disclosures required under N.D.C.C. 13-01-15 to charge the "late payment charge" allowed under N.D.C.C. 13-01-14.1, is still entitled to prejudgment interest under N.D.C.C. 47-14-05 at the legal rate of six percent per annum. View "Weeks v. Geiermann" on Justia Law