Credit Mgmt. Servs., Inc. v. Jefferson

Defendant owed $277 to a cash advance company, which assigned the debt to Plaintiff. Plaintiff filed a complaint for the recovery of money in county court, but prior to the entry of judgment, Defendant voluntarily paid Plaintiff the amount sought. Plaintiff subsequently filed a motion for costs of the action. The county court overruled the motion for costs and dismissed the complaint, concluding that Neb. Rev. Stat. 25-1708 precludes an award of costs when there have been voluntary payments made after the action was filed but before judgment was entered. The district court affirmed. The Supreme Court reversed, holding (1) the county and district courts erred in interpreting the statute to provide for an exception where the defendant voluntarily paid the plaintiff’s claim before a judgment was entered; and (2) therefore, Plaintiff was entitled to its costs in this action. View "Credit Mgmt. Servs., Inc. v. Jefferson" on Justia Law