Tiny Victory in Hospital Collections Suit

There are several morals to be learned from Michael Sargent’s class action law suit against St. Vincent Indianapolis Hospital. Maybe the most important one for this crowd: make sure you’re licensed to collect in the state with which you’re doing business.

Sargent sued the hospital in 2008 for using a Missouri-based collection agency to collect debts in Indiana. The Missouri-based part would be fine, if Outsource Group, Inc., were a Missouri-based agency licensed to collect in Indiaia. However, turns out they weren’t. So Sargent won his suit and $2,000.

Sargent wasn’t alone: his suit was a class-action suit against the hospital with 21 other parties participating. In total, the plaintiffs were awarded $31,500.

Including Sargent’s $2,000.

Minus $25,500 in attorneys’ fees.

Which means that those 21 other litigants pulled in about $200 each — oh, and the satisfaction of being on the winning side. And who can put a price on that?