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TULSA ADJUSTMENT BUREAU v. CALNAN
Citations: 2018 OK 60; 427 P.3d 1050
Court: Supreme Court of Oklahoma; June 26, 2018; Oklahoma; State Supreme Court
Original Court Document: View Document
In the case TULSA ADJUSTMENT BUREAU, INC. v. SEAN CALNAN, the Oklahoma Supreme Court reversed the district court's judgment in favor of Tulsa Adjustment Bureau (TAB), which had filed suit against Sean Calnan for unpaid medical bills. Calnan had settled the debt in full shortly after being served with the lawsuit. He asserted payment as an affirmative defense and counterclaimed against TAB for violation of the Fair Debt Collection Practices Act (FDCPA). The court noted that to be considered a "prevailing party" entitled to attorney fees under 12 O.S. 936, TAB would need to have obtained a judgment in its favor on its claims. Since Calnan had already paid the debt, there were no claims left for the court to adjudicate, making it impossible for TAB to prevail. Consequently, the court stated that Calnan was entitled to judgment as a matter of law. The court also found that factual issues remained regarding Calnan's FDCPA counterclaim, preventing summary judgment on that matter. The case was remanded for further proceedings. The district court's judgment is reversed, and the case is remanded for further proceedings. Justices Kauger, Winchester, Edmondson, Colbert, Reif, Wyrick, and Darby concur, while Combs, C.J. and Gurich, V.C.J. agree with the result. The legal context involves two claims by TAB against Calnan: the first for "Services Rendered/Open Account" alleging a debt of $626.15, and the second for "Quantum Meruit/Quasi Contract," asserting unjust enrichment for the same amount. An affidavit from TAB's president confirms that the principal balance was accurate when filed but was paid in full by Calnan on April 27, 2016, leading to an adjustment of the balance. Under Section 936 of the Oklahoma Statutes, the prevailing party in civil actions for labor or services is entitled to reasonable attorney fees, emphasizing that a "prevailing party" is one who receives relief on the merits. Plaintiffs have two options: accept full payment and dismiss the case, forfeiting a fee award, or reject payment and pursue a judicial determination, which may allow for a fee award if they prevail.