861 N.W.2d 432
Neb.2015Background
- Jefferson owed $277.50; the debt was assigned to Credit Management Services, Inc. (CMS).
- CMS filed a county court complaint to recover the money after demand failed.
- Before entry of judgment, Jefferson voluntarily paid the amount CMS sought.
- CMS then moved for costs under Neb. Rev. Stat. § 25-1708 and sought $56.06.
- The county court denied costs and dismissed CMS’ complaint with prejudice; the district court affirmed.
- The Nebraska Supreme Court took the case, reversed, and remanded with directions to award CMS costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a plaintiff is entitled to costs under § 25-1708 when the defendant voluntarily pays after suit is filed but before judgment | CMS: § 25-1708 plainly entitles plaintiff to costs where plaintiff received a voluntary payment after suit was filed but before judgment, unless plaintiff waived costs in writing | Jefferson: Voluntary payment after filing but before judgment precludes an award of costs (as the county and district courts read § 25-1708) | The court held § 25-1708 grants costs to the plaintiff in that situation; the only exception is a written waiver or release by the plaintiff. |
Key Cases Cited
- Keller v. State, 184 Neb. 853 (1969) (recognizes costs generally awarded to prevailing party)
- White v. Kohout, 286 Neb. 700 (2013) (standard of review for award of costs is abuse of discretion)
- Fisher v. PayFlex Systems USA, 285 Neb. 808 (2013) (statutory clauses must be read in context)
- Coffey v. Planet Group, 287 Neb. 834 (2014) (ordinary meaning of statutory words applied absent indication otherwise)
- Spear T Ranch v. Knaub, 269 Neb. 177 (2005) (statutes that change common-law rights must be strictly construed)