Lisa Woodward v. Credit Service Intl. Corp.

132 F.4th 1047
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 24, 2025
Docket24-1373
StatusPublished
Cited by13 cases

This text of 132 F.4th 1047 (Lisa Woodward v. Credit Service Intl. Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lisa Woodward v. Credit Service Intl. Corp., 132 F.4th 1047 (8th Cir. 2025).

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 24-1373 ___________________________

Lisa Woodward; Peter Woodward

lllllllllllllllllllllPlaintiffs - Appellants

v.

Credit Service International Corporation; Richard Muske

lllllllllllllllllllllDefendants - Appellees ____________

Appeal from United States District Court for the District of Minnesota ____________

Submitted: October 22, 2024 Filed: March 24, 2025 ____________

Before LOKEN, SMITH, and GRASZ, Circuit Judges. ____________

LOKEN, Circuit Judge.

In May 2016, Lisa and Peter Woodward incurred a $2,214.44 debt for their child’s dental care at Southhill Dental Group (“Southhill”). In May 2017, Southhill placed the unpaid obligation with Credit Service International Corporation (“CSIC”) for collection. In February 2022, CSIC filed a claim against the Woodwards in Washington County conciliation court. The Woodwards received no notice of the claim because CSIC sent the summons to the Woodwards’ previous home address. After CSIC obtained a default judgment for $2,880.81, CSIC attorney Richard Muske sent a letter to the Woodwards advising that CSIC intended to garnish their wages to collect the default judgment. The Woodwards did not respond and Muske sent a garnishment summons to their employer, listing an unpaid balance of $2,920.81.

The Woodwards hired attorney Kevin Giebel who filed this lawsuit in state court, claiming that CSIC and Muske violated Minnesota garnishment laws and the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. CSIC and Muske removed the case to federal court and served an offer of judgment for $2,002.00 plus reasonable attorney’s fees and costs. See Fed. R. Civ. P. 68. The Woodwards accepted the offer and, after judgment was entered, filed a Rule 54(d) motion for an award of attorney’s fees and costs “in the current amount” of $26,205.00, which defendants opposed in part. On January 22, 2024, the district court1 issued an order granting the motion in part, awarding attorney Giebel $12,075.00 of the final $29,139.00 he sought. In a January 29 letter, the Woodwards requested permission to file a motion for reconsideration, as District of Minnesota Local Rule 7.1(j) requires. The court denied the request. The Woodwards appeal. We affirm.

I. Procedural History

After the Woodwards’ employer received the garnishment summons, Giebel contacted CSIC attorney Muske and explained that the conciliation court judgment should be voided because the Woodwards did not receive service. Muske agreed to withdraw the garnishment summons and void the conciliation court judgment. Consistent with his practice, Giebel then filed this FDCPA action in state court, knowing that CSIC had committed an indefensible FDCPA violation in obtaining the default judgment and would likely seek a quick settlement to avoid litigation expense.

1 The Honorable Katherine M. Menendez, United States District Judge for the District of Minnesota.

-2- After removing the case to federal court, counsel for CSIC and Muske served a Rule 68 offer of judgment and filed a notice that the Woodwards accepted the offer on May 4, 2023. The offer contained the following terms:

1. Judgment shall be entered in the total amount of . . . [$2,002.00] in favor of Plaintiffs Lisa and Peter Woodward, collectively, as against [CSIC] and Richard Muske . . . .

2. In addition, Plaintiffs Lisa and Peter Woodward’s reasonable attorneys’ fees and costs in connection with Plaintiffs Lisa and Peter Woodward’s claims against Defendants [CSIC] and Richard Muske in the above-referenced suit are to be added to said judgment; said attorneys’ fees and costs as are agreed to between the parties, or if they are unable to agree, as determined by the Court upon motion and any responses thereto.

Following acceptance of the Rule 68 offer, the parties were unable to agree on Giebel’s reasonable attorney’s fees. On May 5, the district court entered a Rule 68 Judgment in a Civil Case in the amount of $2,002.00.

Federal Rule 54(d)(2) provides that a claim for attorney’s fees must be made by motion “no later than 14 days after the entry of judgment” and must specify the “grounds entitling the movant to the award” and the amount sought or a fair estimate of it unless “a court order provides otherwise.” District of Minnesota Local Rule 54.3(b) applies to attorney’s fees motions under Rule 54(d)(2). Consistent with the Advisory Committee Notes to Local Rule 54.3, the District of Minnesota has held that motions filed under Local Rule 54.3(b) must comply with the provisions of Local Rule 7.1 that govern dispositive motions. See Pentel v. Shepard, No. 18-CV-1447, 2019 WL 6975448 *2 (D. Minn. Dec. 20, 2019) (citation omitted).

Local Rule 7.1 governs Civil Motion Practice in the District of Minnesota. Local Rule 7.1(c) governs Dispositive Motions. As relevant here, it provides:

-3- (c) Dispositive Motions. Unless the court orders otherwise, all dispositive motions must be heard by the district judge. Before filing a dispositive motion, a party must contact the district judge’s courtroom deputy. The courtroom deputy will either schedule a hearing or instruct the party when to file its motion and supporting documents. . . .

(1) Moving Party; Supporting Documents; Time Limits. At least 42 days before the date of a hearing on a dispositive motion -- or, if no hearing has been scheduled, as instructed by the courtroom deputy -- the moving party must file and serve the following documents simultaneously: (A) motion; (B) notice of hearing; (C) memorandum of law; (D) any affidavits and exhibits; (E) meet-and-confer statement, if required under LR 7.1(a) (unless later filing is permitted . . .); and (F) proposed order (an editable copy of which must be emailed to chambers).

* * * * *

(5) Motion Hearing or Other Resolution. (A) On Court’s Initiative. At any time after a party files a dispositive motion and the motion’s supporting documents, the court may: (i) schedule a hearing (if no hearing was initially scheduled) (ii) reschedule a hearing (iii) refer the motion to a magistrate judge; or (iv) cancel a hearing and notify the parties that the motion will be otherwise resolved.

On May 13, 2023, attorney Giebel filed Plaintiffs’ Motion for Attorney Fees and Costs pursuant to “Minnesota Federal Rule of Procedure . . . 54(d)(2).” The Motion stated that the May 5 Judgment, Minnesota’s garnishment statute, and the

-4- FDCPA entitled Plaintiffs to a fee award and that the “[c]urrent attorney fees sought” was estimated to be $28,000.00. The Motion stated that it was based on “the files, records, and proceedings in this action” together with Memoranda of Law in Support, Declaration of Kevin E. Giebel and Exhibits, “all to be served and filed in accord with the Rules.” On May 24, the district court entered a text Order denying the Motion without prejudice “for the following reasons”:

Most importantly, the motion was filed without adequate factual support on which the Court could base a determination whether the fees incurred were reasonable. Although Plaintiffs’ motion references a supporting declaration and exhibits concerning the estimated $28,000 in attorney’s fees claimed, neither a declaration nor any documentary evidence has been submitted. Similarly, although Plaintiffs state that their motion is based upon their memorandum of law, none was filed in support of the motion. . . . Because denial of the motion is without prejudice, Plaintiffs may refile their motion and should do so promptly. . . .

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132 F.4th 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lisa-woodward-v-credit-service-intl-corp-ca8-2025.