Serrania v. LPH Inc.
2018 MT 3N
| Mont. | 2018Background
- Karrie Serrania sued her dental provider and LPH, Inc. (a debt collector) in 2012, alleging among other claims a Fair Debt Collection Practices Act (FDCPA) violation.
- In January 2014 the Fourth Judicial District granted summary judgment for the dental group and LPH and imposed sanctions against Serrania and her attorney Terry Wallace.
- This Court affirmed summary judgment and upheld a $10,000 sanction for Wallace’s misconduct but vacated and remanded the portions charging Serrania and Wallace jointly for defendants’ attorney fees related primarily to the FDCPA claim.
- On remand the District Court held a show-cause hearing, excised attorney-fee amounts attributable primarily to the FDCPA claim, withdrew the prior $10,000 court-directed sanction, and ordered Wallace to pay LPH $30,847.68 under M. R. Civ. P. 11 and 37 and § 37-61-421, MCA.
- Wallace appealed, arguing the revised sanctions order violated his due process and notice rights and that the fee allocation still improperly included FDCPA-related work.
- The Supreme Court reviewed for abuse of discretion and affirmed the District Court’s amended sanctions order as compliant with the remand instructions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the District Court abused its discretion in reimposing sanctions after remand | Wallace: order violates due process/notice; improperly includes FDCPA-related fees | District Court/LPH: court followed remand, removed FDCPA-related work, statutory and rule authority supports sanctions | No abuse of discretion; sanctions of $30,847.68 affirmed |
| Whether the remand instructions were followed in excising FDCPA-related fees and reallocating sanctions | Wallace: prior sanctions and fee allocations remained procedurally improper | District Court: amended order excised FDCPA work per appellate guidance and relied on record | Court finds the District Court complied with instructions and acted within its discretion |
Key Cases Cited
- Serrania v. LPH, Inc., 347 P.3d 1237 (Mont. 2015) (prior appellate decision addressing summary judgment and sanction issues)
- Spotted Horse v. BNSF Ry. Co., 350 P.3d 52 (Mont. 2015) (standard of review for district court sanctions—abuse of discretion)
- McKenzie v. Scheeler, 949 P.2d 1168 (Mont. 1997) (authority cited regarding sanctioning standards)