Olivea Marx v. General Revenue Corp.

133 S. Ct. 1166 (2013)

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Olivea Marx v. General Revenue Corp.

United States Supreme Court
133 S. Ct. 1166 (2013)

  • Written by Sharon Feldman, JD

Facts

Olivea Marx (plaintiff) defaulted on a student loan. General Revenue Corporation (GRC) (defendant) sought to collect the debt. Marx sued GRC under the Fair Debt Collection Practices Act (FDCPA), alleging that GRC engaged in inappropriate collection tactics. The district court found that Marx had brought the action in good faith but failed to prove an FDCPA violation, and, pursuant to Federal Rule of Civil Procedure 54(d)(1), ordered Marx to pay GRC’s costs. Rule 54(d)(1) provided that costs other than attorney’s fees should be allowed to the prevailing party unless a federal statute, civil-procedure rule, or court order provided otherwise. Marx moved to vacate the award, arguing that 15 U.S.C §1692k(a)(3) was the exclusive basis for awarding costs in FDCPA cases. Section 1692k(a)(3) permitted a court to award a defendant attorney’s fees and costs on a finding that an FDCPA action was brought in bad faith and for the purpose of harassment. The district court declined to vacate the award. The Tenth Circuit affirmed, and the United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Thomas, J.)

Dissent (Sotomayor, J.)

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