Opinion ID: 4108035
Heading Depth: 3
Heading Rank: 2

Heading: Stewart v. Midland Funding LLC

Text: Cynthia Stewart opened a Citibank credit card account in 2002 with the same arbitration provision as Hudson’s. Stewart fell behind on her payments, and in December 2010 Midland Funding, which had purchased Stewart’s account from Citibank, initiated an action in Anchorage District Court to collect the debt. Alaska Law Offices represented Midland Funding in the proceeding. The district court entered default judgment against Stewart, who failed to appear. Alaska Law Offices argued that Midland Funding’s actual attorney’s fees in the case were $739.04, again 20% of the 2 Alaska R. Civ. P. 82(b)(1), (b)(4). -4- 7141 recovery, and asked for 10% attorney’s fees under Rule 82. The district court awarded the requested fees. Stewart later filed an action in the superior court alleging that Midland Funding and Alaska Law Offices violated the UTPA by using a contingency fee arrangement as their “reasonable” fees under Rule 82. The defendants moved to stay the action and to compel arbitration. In July 2012, the superior court stayed the action and compelled arbitration “according to the same terms ordered by this court in Hudson v. Citibank.”