Hyde

Hyde v. Midland Credit Management, Inc.

Good Law

567 F.3d 1137·2009 WL 1587902·2009 U.S. App. LEXIS 12748

United States Court of Appeals for the Ninth CircuitJune 9, 200907-55326California1,730 words

Opinion

Fletcher, J.

Plaintiff Darren Del Nero sued Defendants-Appellees Midland Credit Management, Inc. (“Midland”) and MRC Receivables Corporation (“MRC”) for violations of the Fair Debt Collection Practices Act (“FDCPA”) and California Business and Professions Code § 17200. Appellants Robert L. Hyde, Joshua B. Swigart and their law firm Hyde & Swigart (collectively “Hyde & Swigart”) represented Del Nero. Del Nero lost his suit on the merits.

The district court awarded attorney’s fees and costs to Midland and MRC under the FDCPA, 15 U.S.C. § 1692k(a)(3), holding Del Nero and Hyde & Swigart jointly and severally liable for the award. Hyde & Swigart appeal the award of attorney’s fees and costs. We reverse.

I. Background

On February 17, 2004, Del Nero and his mother Nicole Shaker sued Midland and MRC alleging violations of the FDCPA and California Business and Professions Code § 17200. Attorney Robert Stempler represented both Del Nero and Shaker. Stempler subsequently withdrew and was replaced by Del Nero’s sister. Shaker settled with Midland and MDC before trial, and her claims were dismissed with prejudice. Three months before trial, Hyde & Swigart replaced Del Nero’s sister as his counsel.

The…

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